A range of Internet consulting franchisors have sprung up promising to make “Internet business experts” out of franchise holders.
However, industry insiders caution that – much like other schemes on the Net – Internet franchises too are a “buyer beware” industry.
One of the better known firms offering such Internet franchise services is ‘WSI Internet Consulting and Education’ based in Toronto. Google the words “Internet consulting franchise” and the name of the 11-year-old firm appears on first page, in several entries.
The WSI site says the organization has more than 1,500 franchises in some 87 countries. For an up-front fee that starts US$49,7000, WSI says it trains and supports franchisees and certifies them as Internet consultants (ICs), who can in turn help small and medium-sized firms with such tasks as creating a Web site and developing and implementing an online business strategy.
The IC assesses a potential client’s e-commerce needs and then contacts one of WSI’s so-called Global Production Centres that provide the client with the necessary Web-business software and hardware. The IC or franchisee earns money by marking up services provided by the Global Production Centre.
The WSI Web site claims this is an attractive model as the WSI franchise requires very little overheard and no inventory or staffing costs.
Another company, however, claims this franchise model constrains the franchisee. “We found the channel model used by companies such as IBM and Microsoft for partners more appropriate,” said Thomas Harpointer, CEO of Atlanta-based AIS Media Inc.
Harpointer says his company offers similar services to WSI but, unlike franchisors, does not charge royalty fees. He says the upfront fee of US$ 19,999 to US$29,000 can be recovered through a “rebate scheme.”
The AIS Media chief says his company also trains people to become Internet business consultants but offers them greater freedom in selling products and services. “We are more flexible because while we offer proprietary e-commerce software, our partners are free to sell products and services from any vendor.”
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