Online Marketing Franchise: The Pros and Cons of a New Business Model

In the last few years, the traditional model of offline marketing has been disrupted by technological advancements, changing consumer behaviors, and increasing competition. To remain profitable, many businesses have shifted their attention to online marketing, which grew 19.9% year over year in 2019 to $16.810 billion in the United States.

An online marketing franchise is a business that specializes in online marketing, including market research, lead generation, and content marketing. These businesses were once considered ‘traditional’ marketing and advertising businesses, but with the rise of digital marketing, social media, and affiliate marketing, they must adapt to remain relevant.

Here are the top pros and cons of an online marketing franchise investment.


1. Profitable

The global market for online marketing franchises was valued at $16.810 billion in 2019 and is expected to rise 25% year from 2020 to 2025.

According to Statista research, the average online marketing franchise earns $500,000 per year, making it one of the most lucrative business opportunities available. While the income may seem high, it doesn’t include the potential profits from additional sales channels such as retail or corporate clients.

To put this amount into perspective, the average American household earns $50,000 per year, so investing in an online marketing franchise could potentially pay off handsomely.


1. Time-consuming

If you are looking to increase your income significantly, then you might want to consider investing in an online marketing franchise. However, the amount of time required to make it worthwhile can be considerable. It takes a lot of effort to become profitable in this industry, and the amount of time it takes to reach this point varies from company to company. Furthermore, starting an online marketing franchise requires a good amount of investment, and you will need to put in the time to learn the ropes before you can begin generating revenue.

On the plus side, this business has the potential to be extremely lucrative, but it will take a lot of hard work to make it happen. The good news is that you can charge significantly higher rent for a storefront with a coffee machine in the lobby than you can for an office or a small workspace. If you can find a good location, it will be worth the effort.


2. Steady

Online marketers must be highly adaptable and willing to change with the times, as consumer behavior changes constantly. Additionally, the digital landscape is becoming more complex, making it harder to gain traction and maintain relevance.

Thanks to the internet and social media, consumers have access to a wealth of information and can easily compare products and services, potentially leading to a decline in brand loyalty. This trend has made it easier for consumers to become aware of competing products and brands, resulting in a more qualified lead base and greater conversion rates.

As a result, online marketers must be able to adapt quickly to the changing consumer landscape and to ensure their campaigns are performing effectively.


2. Changing Demographics

Due to the increasing influence of social media and the internet, demographics such as Gen Z and millennials have different marketing and sales expectations than previous generations. According to HubSpot Blogs research, Gen Z are less likely to buy a product without trying it out first, and they value safety and security more than previous generations.

These consumers also prefer in-person interaction, so marketers should consider investing in physical stores as opposed to online marketing alone. Many brands, products, and services are completely unsuitable for online marketing due to their high specificity (they target a small group of people and are not mass-marketed).


3. Growth.

The digital marketing industry is expanding, as evidenced by the fact that more and more people are getting into the game. The opportunities for entrepreneurs who decide to venture into this industry are immense. Thanks to increasing automation and artificial intelligence, the number of online marketers is expected to increase by 24% year from 2020 to 2025.

Additionally, according to Statista, there are 1.8 million marketing job openings across the globe, and this number is predicted to grow to 2.3 million by 2026.

If you are looking for an income opportunity that offers steady growth, then consider investing in an online marketing franchise.


3. Complex Regulations

As a business owner, you will need to comply with numerous regulations in order to succeed in this industry. For example, you will need to register with the Federal Trade Commission, be registered with the Arizona Office of Consumer Protection as a telemarketer, and ensure you comply with the CAN-SPAM Act. As a franchise owner, you must also ensure that your employees are licensed and registered as telemarketers.

Additionally, you will have numerous marketing restrictions such as no product promotions, no sampling, and no affiliate sales. You must also establish business policies and procedures, learn how to effectively use social media, create marketing campaigns, and analyze metrics.


4. International Reach

While most businesses are centered on a domestic and/or an indigenous audience, online marketers must consider reaching a global audience. Thanks to the growth of social media, search engines, and email marketing, businesses can gain traction and find success in countries and regions where they might not have previously reached a significant audience.

If you are looking for an income opportunity with the potential to be internationally recognized, then consider investing in an online marketing franchise.


4. Competition.

Like any other industry, the digital marketing industry is constantly expanding, resulting in more competitors and more opportunities for existing businesses to grow.

As an entrepreneur who decides to enter the industry, you will face significant competition for customers, and this competition is likely to increase as more and more people get into the game.

If you are worried about securing customers given this ever-expanding competition, then consider investing in an online marketing franchise that already has a networked customer base.


5. Scalability.

Thanks to the internet and social media, businesses can scale their marketing efforts and gain considerable traction quickly. This makes it easier for startups to flourish, as they can quickly expand their customer base and gain enough revenue to sustain themselves.

If you want to enter a business that can scale with little effort, then consider investing in an online marketing franchise.


5. Investment.

While the returns on investment in an online marketing franchise are considerable, the initial investment can be high. However, thanks to the internet and automation, the process of getting an online marketing franchise up and running is now much more straightforward and cost-effective. The good news is that you can create a marketing plan that should be able to yield a profit, and with sufficient effort, you should be able to optimize the operation for maximum profits.

If you are looking for an investment opportunity with decent profit margins, then consider investing in an online marketing franchise.

In conclusion, the pros and cons of investing in an online marketing franchise are more or less balanced. The pros outweight the cons thanks to the extremely lucrative industry, but the investment is still substantial.