You see them everywhere – shopping malls, college cafeterias and also food trucks. Juice bars are popping up like it’s a new thing in town. In reality, it’s more than just a fad. We are talking about a global industry that could be worth $250 billion dollars by the year 2025. In other words, it’s an entrepreneurial opportunity that leads many people wondering how to start a juice business and become profitable at it.
In today’s niche idea, I’ll be talking about the most common method which is franchising and a more modern business model that you can invest for just one dollar per day. What exactly is that? Let’s find out.
The Franchising Model
Dated as far back as the 1880’s, franchising is one of the oldest ways of distributing products and services to the consumer market. They exist in all sorts of niches, from sewing machines to burgers and now, even the juice industry has adopted the method.
Here are some of the companies that offer juice franchising (in the US);
- I Love Juice Bar
- Nektar Juice Bar
- Juice It Up
- Clean Juice
Now, if you are new to setting up a business, the franchise model may be a good fit for several reasons;
- The trademark allows you to gain customer loyalty immediately through brand recognition. This is an advantage over starting with a brand that people don’t know about.
- The blueprint for marketing campaigns are often available based on strategies that have been tried and tested by the company.
- You’ll get access to suppliers, financial assistance, legal advices as well as proprietary methods needed to get the business up and running.
- The company will provide management and technical training to familiarize with details of the business operation.
- You don’t need to spend on costly research and development – that’s the job of the franchisor.
However, what seems like an out-of-the-box solution, do come with its own set of challenges and the most obvious one is the startup budget.
- In case you aren’t aware, the cost of starting a juice franchise can cost anywhere between $47,000 to $395,000 in which, at least $200,000 is required up front.
- This sum is allocated for a variety of components such as location, equipment, payrolls and business licensing. Besides that, franchise, marketing and advertising fees must also be paid to the franchisor as part of the agreement.
- By operating under a proprietary trademark, there’s limited creativity and flexibility as to what you can alter in terms of branding, supply chain or marketing system. Often times, you need to follow their rules and regulation.
- Any changes to the brand’s reputation will have a direct impact on your business – whether it is good or bad. So if you ended up with a company that doesn’t have a strong portfolio, you could be stuck with a lot of liabilities for years.
Franchising clearly comes with big risks and the success of the model is very much dependent on various extrinsic and intrinsic factors. If you are not a risk taker, then this idea isn’t suitable for you. However, if you are still passionate about this niche (but doesn’t have thousands of dollars in savings), a more cost-effective model is to start an affiliate business.
The Affiliate Business Model
I am pretty sure you’ve seen juices being sold online. Usually, this is an extension of some kind of independent based retail store. Such businesses, just like franchises, have a lot of physical assets, which is still equivalent to high investment.
With affiliate marketing, you don’t have to carry that kind of risk because by promoting other people’s products, profit is earned through commission based revenue, without the need for costly investment. Since most of the operation is purely online in nature, the upfront cost is significantly reduced to just website maintenance, specific software/program purchases and paid traffic (optional).
The way money is made is through writing online reviews, specifically on product items related to this niche that offer affiliate programs. This can come in the form of articles or video creation, if you are not camera-shy. Unlike a franchise that just sells ready-made drinks, the targeted consumers are people who want to experience juicing, hands on.
As such, an in depth knowledge or curiosity about all aspects of juicing will be advantageous in this venture moving forward. Here are some products that you may find interesting.
- Books – Recipes or how-to guides that are available online or in-store. They can be found in the Clickbank marketplace, Barnes and Noble or even from independent writers. If you are creative enough, you can also produce your own and sell as a digital product.
- Ingredients – Many people shop for fresh ingredients online nowadays and when it comes to juicing, it’s important to recommend outlets that provide healthy, affordable and convenient options. Among the retailers that you can review are Jet marketplace, Thrive Market and Fresh Direct.
- The equipment – Juicer machine is an essential component for creating the best juice and they are good to market for a couple of reasons. Firstly, consumers usually do a thorough research online about the specs and prices before purchasing. Secondly, these are big ticket items that can yield more revenues than books or online groceries.
The Amazon marketplace is a good platform for consumers to compare different product features and their values based on verified customer reviews. The sales commission for home & kitchen is at 4.5%, so if you are promoting a Kuvings slow juicer of this model, you could make $20 in profit.
And that’s not all. Unlike franchising that requires constant labor output in order to make money, affiliate commissions are often recurring as long as you are publishing helpful content and optimizing them for the search engines. Once you know how to rank on the first page of Google, you’ll be attracting hundreds/thousands of audience to your product reviews and potentially generate long term income as a result.
So, how exactly does the investment work out to be one dollar per day? Well, a good domain name is usually priced at $15 per year (or less) and a reliable WordPress hosting should cost about $30 per month (that’s $360 per year). After doing the math, that’s only about $1 per day.
There are obviously other add-ons, but they aren’t compulsory and you certainly don’t need any license to start an affiliate business.
Juicing Your Way to Success
As more people embrace healthier eating lifestyle, the juice market is only going to grow even more into the future. Franchising is a good model only if the company is constantly adapting to new consumer trends. If you are a juice-loving entrepreneur at heart, affiliate marketing will offer more choices, flexibility and creativity to engage with the consumers online.
I hope that by explaining the difference between these two models, you’ll be able to anticipate the route of your business setup. Plan the budget, research the niche and know what goals you want to achieve. If you like to learn more about leveraging success from the online space, here’s a good training platform to check out.
Do you have any questions or thoughts about this topic? Feel free to write them down below and I’d be happy to respond.
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I feel like there are a lot of risks involved with starting a franchise that I don’t know if I am ready to handle. Like if I accidentally choose a franchise with a weak portfolio I don’t want to get stuck with liabilities for years. I would rather have my own juice business with my own brand name. I would want the freedoms to make any choices I want involved in my business.
I mean, if I am going to put all that money down, $200,000 to start a business in my own name or a franchise? I think ideally I would want my own business with my own name. But I was considering starting my own franchise ( I assumed it would be a lot cheaper to start up! I was wrong ) now I know that a franchise is not something for me.
I definitely learned something from this article.
I think affiliate marketing makes it possible for someone to start a business in the juicing niche. It gives you more opportunity to try out other brands and promote the ones that are really good. Considering how much it takes to produce and sell fresh juices, I think affiliate programs is more cost effective for beginners and can result in a much faster return of investment.
I didn’t know that starting a franchise required so much capital up front! I think the affiliate marketing system is something that is much more accessible for most people because of the lower cost of entry. I have seen quite a few people have success with affiliate marketing using Amazon’s affiliate program which is nice to see!
One of my first jobs was in a juice bar as a teenager, and you definitely do need a lot of capital. As well as worries about employing staff. The affiliate model is really intriguing and seems like something that anyone can be a part of. As a mum now, I’m really keen to find a source of income without the commute into the city. Thanks for the enlightening article!
I’m thinking of going self employed for a while, but the opportunities for real life businesses are all connected to more or less high the upfront costs, like you say.
I have also checked on some MLM companies, but it’s often required to buy most of their products and push sell in order to achieve a certain targeted sales.
Affiliate marketing seems like a better way as it is free, no pressure and there are many profitable niches to leverage from, so I am definitely heading down this direction.
You’re so right! Juicing is only going to get bigger demand from now on because people want to get healthier and feed their children healthy stuff too.
I did open a pet store as more people are adopting more animals and wanted to help them save by providing them cost effective items, instead of going to the retail giants to spend over $60 for a chihuahua coat.
But you’re right! The start-up cost was way more than I had anticipated and this is what really brought me down because I had no money to do much else.
The business had to be closed. Now I did the smart thing and also invested in a website, to promote products as an affiliate. You have to do most of the leg work, but the start up cost is WAY less than what I paid for my pet shop. I should have invested on it from the beginning, but I guess you learn from your mistakes.
I sure hope that others will learn from mine. GO FOR ONLINE BUSINESS FIRST!
Setting up a franchise business was something that I had been considering. Not in the juice business, as it happens, but your analogy works very well for me.
Question, how long does it take to get a business off the ground using affiliate marketing and will it ultimately be as profitable as a traditional franchise?
Hi Howard. With diligent learning and action-taking, I would say you can start earning a bit within a year or so. Will it be as profitable? Well, it depends on what niche you are in and the type of products/services that you are offering. Something that’s evergreen can generate a pretty stable cash flow, but with anything that’s a fad, you could make lucrative amount within a short period and fizzle out in the next. So, always choose your niche products based on thorough research.