Best of the ISP-Lists

McISP

Members of the ISP-Outsourcing list discuss a different kind of virtual ISP. Instead of offering private-label services to resellers, wouldn't it be nice to spread your ISP's name across America through franchising, like McDonald's and Howard Johnson?

[October 10, 2001]

On the ISP-Outsourcing list in September, PC inquired,

"We are considering offering franchises of our ISP. This would not be a private label product; it would be a way for a struggling ISP to run a business with a first class marketing and support team, portals, standardized procedures, protected territories, and many other things a smaller ISP just does not have the capital to provide. Any thoughts?"

A number of respondents suggested it has everything to do with the strength of the brand:

[RR advised] "It all depends on what kind of brand you currently have. If you're Earthlink, it may be a good idea. If you are Jim's Muffler Repair & ISP, then it's pointless. When someone buys franchise rights, first and foremost, they are buying a brand: the marketing and support is secondary. Right now, an ISP that operates as a VISP with a private labeled local brand makes more sense than what amounts to basically the same thing with your unknown brand."

[MH agreed] "You'd need either a really good name, or a niche and a substantial marketing plan."

Others noted that one company, at least, is already in the game:

[VB noted] "Quik Internet has been doing this for several years."

[RL agreed] "According to their web site, they've got over 225 franchisees around the world."

Still others offered another way of approaching the 'franchise' concept:

[EA observed] "I have wondered why no one has seriously thought about franchising. It might be an interesting task for a group of small ISPs to consider, but each ISP would have to agree to give up some individuality in order for standards to be set. The value for the ISP is to reduce costs by either centralizing certain functions, or by allowing the central group to buy 'ingredients' like billing services or tech support, just like McDonalds buys buns or napkins in bulk, to supply to the franchisee. Moreover, a user would 'know' what they were getting if they moved from one franchisee to another."

[PS agreed] "There are some interesting points to such an organization, but I'm not sure that a true franchise would be the right format. One of the biggest advantages would be in getting better local number coverage if some shared arrangement were established between a large group of facilities-based ISPs."

— End