NOTE: This one’s an “essay”, so grab your favourite drink, or if you’re too busy to read it now, come back in the evening when the day is done.
Twelve years ago, a new partner joined UW who already owned 2 Subway franchises.
Out of curiosity, I recently discovered just how much he had paid to become a franchisee: It was a staggering £8,500 for each of them (& that’s cheap as chips compared to a McDonald’s franchise.)
But, as I read on, I discovered that this is just the beginning of your investment: once you factor in premises fit out, equipment and working capital, the total costs will be much higher, and depending on the location, that could total as much as £100,000.
Obviously, most people don’t finance this completely themselves, but take out a business loan, and often sink their first few years’ profits back into paying their debt.
So, imagine you decided in 2019 that this was your time, and you had the loan agreement in place, you knew the success rate of other Subway franchisees was historically very solid – it was pretty much a dead cert that within the next 5 years you would be on a home run. Right?
And then…. lo and behold…. Covid-19 strikes, and you can probably see the nightmare situation you’d now find yourself in: thousands of pounds in debt and very way less customers coming through your doors, with no clear roadmap out of the hole you’re now in.
Let’s compare that with the risk vs reward of starting your own “Utility Franchise” with UW.
Step 1: Become a customer, and probably save some money, either immediately, or very soon (UW have actually put their energy prices AND mobile tariffs down recently, whilst their competitors are heading in the opposite direction).
Step 2: Immediately join as a partner for the princely sum of £10 and then £3/month after the first month (which covers the cost of OFGEM/OFCOM licensing fees, public liability insurance, your own hosted website, all on-going training and more).
Step 3: Work with the partner who introduced you (that’s me), who actually does the work of signing up customers online for you, for your first 45 days, whilst you watch. And you get paid (and don’t worry, so do I).
Playing the numbers game here for a second:
Let’s say in your first 45 days you & I do online reviews for 28 people. Because we don’t have to travel, and are doing these all online, we can typically do a review in less than 30 minutes, but let’s make it 45 minutes instead.
So our total time over the 45 days for all the appointments is about 21 hours, or less than half an hour per day.
Let’s say we don’t do too well, and we only get the following results:
7 become customers (the other 21 don’t)
Out of those:
4 of them are home owners who sign up for all the services in your first month
3 are renting, and they also take all the services (and they all come in the last 15 days)
So your failure rate is pretty high – 21 people didn’t become customers, or a 75% failure rate. (it’s better than this normally, especially as you become more experienced)
The “million dollar question”: How much would you earn?
Here’s the answer:
£350 x 4 (we get paid more for homeowners, just because they stay a much longer time)
£90 x 3
TOTAL earnings for 21 hours investment, and £10 upfront cost: £1670
(for being a 75% failure!)
Remember I told you about the partner who had TWO Subway franchises. Well, after joining UW as a partner, and working solidly for around 9 years alongside his 70 hour/week Subway business, he ditched (ie sold) both Subways.
And now, he’s a stay at home dad with the privilege of being there as his daughter grows up.
The most staggering thing about being with UW, is that not only do you get the very generous amounts you see above, but you also get paid an on-going royalty income of a few pounds per month for every customer that joins through you.
And multi-service customers love the fact that they have one single monthly bill for all their utilities – simplicity & peace of mind for them, and a growing passive income for you. (Those customers tend to stay for a very long time).
Think of it as a monthly pay rise for your consistent efforts.
Is this easy then? All rainbows & covid-proof unicorns?
No. Here are the 3 biggest reasons why:
1) A lot of people can’t be bothered to change their suppliers even though they know they’re paying too much
2) People don’t like be “sold to” or “told to” (ie told that someone else has found a better deal than they did)
3) You need to learn how to grow your network of contacts (hint: referrals)
Obviously, I wouldn’t be bothering to tell you about the above if UW hadn’t found solutions to these hurdles and challenges.
The company has been around since 1996, and we have over 40,000 partners with combined thousands of years’ experience, on-going skills-based training that covers the above hurdles, plus lots of other online training that will help you grow your business.
If you’ve made it this far into this email, then there’s fair chance you’re considering this as an additional income option.
Remember: you don’t have to do this every day of the month, or even every week. Some partners have other jobs or businesses (myself included), and we just fit this around our families, lives and other existing commitments.
If you’re ready to get started, click on the button below.
If just need to talk through some questions reply to my email, and we can arrange a time to chat on the phone.