(Ambrosio’s note: Although this is not the typical franchise that I feature on the blog, LocalUp Solutions offers such a unique business opportunity — especially for those interested in home-based, online businesses — that I thought you’d enjoy learning about their innovative business model and value proposition.)
If you are looking to bring a locally-branded, interactive restaurant guide to your community and are interested in starting a business or expanding upon a current online business, check out LocalUp Solutions’ SaaS (Software-as-a-Service) product and business opportunity. Software-as-a-Service is a model of software deployment whereby a provider (LocalUp Solutions) licenses an application to licensees or customers for use as a service on demand.
LocalUp targets entrepreneurs in niche markets and communities. This includes niche markets within major metropolitan cities.
Learn more about this unique online business opportunity from LocalUp Solutions’ CEO, Chris Jeffrey.
1. Can you tell us about the business model of LocalUp Solutions?
LocalUp provides a white-label software solution and business opportunity to drive local online food orders and restaurant advertising dollars, in hyper-local markets and communities (e.g. SBMenus.com in Santa Barbara, CA). We target local entrepreneurs with a knack for sales and marketing, and are highly networked. The revenue model is a dual revenue model in which the local entrepreneur generates revenue from online orders placed through their white-label restaurant guide by charging the restaurant a commission on each order placed and charges for premier display advertising positions located on the site. LocalUp provides the technology and ongoing development of the technology, round-the-clock call center and help desk and business model training and support. The licensee of the LocalUp business opportunity focuses on sales and customer relationship management, marketing and local consumer acquisition and content management.
2. Why should someone interested in starting an online business consider an online restaurant guide through LocalUp Solutions?
We have developed a proven model with less than average start-up fees (when comparing to a standard brick and mortar franchising opportunity). Secondly, it is a digital business model, which is the wave of the future. Lastly, the online food ordering and restaurant display advertising space (especially in hyper-local markets) is extremely hot and growing.
- Commissions on online food orders (10% per order)
- Display advertising (ranges based on visitors – grows over time)
4. What kind of training and support do you offer?
Initial training is completed at our headquarters in Baltimore, MD. The licensee pays their way for travel expenses and we spend 4-5 days going through everything from sales, to marketing, to business positioning, competition, accounting, etc. Prior to training, there is a 45 day on-boarding process and post training each licensee has access to account managers, ready to answer any and all questions and to provide advice and guidance.
We typically recommend a licensee comes to the table with $100-$125k, depending on the market size, of which, we only take a small percentage of to cover training and support in the first year. A majority of the initial investment should be allocated toward sales and marketing efforts that have been proven and we provide advice on capital allocation.
Ongoing fees include per order fees we charge licensees for support of the online ordering menus as well as page view fees. We don’t take a percentage of revenue.
6. Describe the ideal candidate for this type of business in terms of professional background and personality traits.
Sales and marketing backgrounds are ideal. We also have former or current restaurant owners who have had tremendous success with the model. In fact, restaurant owners tend to like this model a bit more, as you don’t need to manage a number of employees, don’t have to work around-the-clock and tend to have higher profit margins. But really any hard working entrepreneur who has the drive and passion to get out there and network, sell, market, and advertise can have success with the model.
Social media integration and unique ways to organically grow traffic through social media. Additionally, just networking with the right outlets locally. This model is predicated on the local network and taking advantage of that. There are opportunity areas within each hyper-local market and our licensees tend to find these after they understand how to grow their site through our training and support.
8. Is there anything else you’d like to share with us about LocalUp Solutions?
We are growing at a blistering pace as some of our sites are up 1000% year-over-year. Additionally, we’ve had licensees successfully raise capital at their level from angel investors after they’ve had success with an initial site, which is always a good sign.