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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