Businesses Use Web without abandoning Physical Presence

Businesses use Web without abandoning physical presence
By JAN NORMAN, The Orange County Register Comment on this story SANTA ANA, Calif. - Chuck Bankoff, Capistrano Beach franchisee for WSI Internet, has not met 90 percent of his clients in person.
Most of his work and meetings are done over the Internet.
Lack of time and abundance of technology are combining to change the way some franchises and similar ventures do business. Despite advertising promises of "run an Internet business from home," franchisers aren't completely there yet. But some are moving in that direction in response to customers and interest from franchise buyers.
Thousands of individuals do run full- or part-time businesses completely over the Internet. Think eBay super sellers.
But the appeal of franchising and similar business opportunities is that they supposedly come with a proven business model, established brand and how-to-do-it instruction manual. They are also more likely to grow into larger businesses.
"Relationships are still very important, but what we're finding is that people are busy, and in the past four or five months gas prices have gone up so much that working virtually appeals to a lot of people," said Ron McArthur, chief executive of WSI, a Canadian franchiser that helps build Web sites and provides Internet marketing tools and services through 1,500 franchisees in 87 countries.
"Time is money. WSI is in a unique position," he added, "because clients see these tools that allow franchisees to work over the Internet as part of what we do for them."
Bankoff, whose company is WSIeWorks, has been a franchisee since 1999. He initially built his clientele through such networking groups as RBN and BNI. As business grew, he was often too busy to attend meetings.
Now most new clients come through referrals or lead-generation services.
Some want to meet face-to-face the first time. "They want a handshake, to look you in the eye, but after they meet me once, I steer them toward virtual meetings," he said.
He has clients and suppliers all over the world.
He uses Internet services, such as GoToMeetings.com, to give sales presentations and show Web products to groups of up to 25 people.
"I find it easier to do virtual meetings," he said. "Everyone is in his comfort zone, sitting at his own desk, instead of people huddling around one computer screen."
The key to making Internet client relations work, Bankoff said, is "knowing what you're talking about and having something of value to offer."
Bankoff is also an area developer for WSI and provides training and guidance for 33 Southern California franchisees. Those meetings, too, are going virtual.
"I'm trying to conserve time both for consultants and clients," he said. "I find the highest (franchisee) producers work over the Internet. Average producers use it halfway. The low producers drive all over town to meet with people who forget they're coming."
Some franchises, like fast-food restaurants, must have a physical location, but Bankoff believes any consulting or service franchise could go virtual with the Internet sales and meeting tools he uses.
However, even some location-based franchises are adding Internet franchise options to stay competitive.
Instant Imprints in San Diego has about 100 franchisees in three countries, most of which have shops where they provide signs, screen printing, embroidery and advertising specialties like mugs imprinted with a company's logo.
About a year ago, the company set up iStores on the Internet, said President Leo Katz. Businesses, sports teams and nonprofit groups can set up their own location selling approved logo items.

Some potential franchise buyers inquired about operating home-based businesses, so Instant Imprints now has two franchisees doing just that, mostly selling iStores.
"It's now one of our nonstandard concepts along with kiosks in malls and locations inside larger retailers," Katz said. "Some (traditional) franchisees are worried that the home-based businesses will take customers from them geographically, but there are 25 million businesses in the United States, plenty to go around."
The iStores have led Instant Imprints to set up another Internet site, called iDesign, where individuals can create their own art for T-shirts and other items. The site is free.
It reaches areas of the world where Instant Imprints doesn't yet have franchise stores and helps existing stores compete with Internet-only ad specialty services.
"We wanted to show our customers that we are on the cutting edge," Katz said.
But he doesn't think Instant Imprints will become a Web-only company.
"More and more companies are using the Internet for things they didn't used to do," he said. "Here it is still questionable how far we will go. We don't intend to stop opening physical locations. If there are ways we can leverage the Internet to offer things competitors don't, we'll do it. But we need franchisees to go out and give customers personal service."
Still other companies that started by creating Internet business tools are moving into selling business opportunities as a means to sell those tools.
One example is Attain Response, a Colorado company that provides e-mail hosting services and e-mail marketing that incorporates video.
Some customers wanted to sell these products as a side business. So Attain Response has developed programs for both affiliates and resellers who earn a percentage of services they sell.
Attain Response does provide training and a how-to package for its affiliates and resellers, but not full ongoing support characteristic of franchises.
It also doesn't file standard franchise disclosure reports with states and the Federal Trade Commission.
"We have Realtors and auto dealers who have used our products and wanted to sell them to other Realtors or businesses," President Wade Weston said. "Some switched over to do only this business. There are people who get the Internet and those who don't."