If you’re looking to buy into a business opportunity, you will want to make sure that you are choosing a scheme which will be profitable. In this review I look at one scheme where I think it would be hard to make a profit, and another business which looks like a much better bet.
I was recently sent some information about a business opportunity, The Royal Advocate Scheme, from The Royal Day Spa in Tunbridge Wells. The scheme is described as follows:
“Royal Day Spa are offering women in Kent – with time on their hands and the ability to organise social events – the opportunity to earn up to £1000 a month. Royal Advocates are required to attend a short two day training course called the Royal Advocate Scheme. The cost of this is £300 (actual worth is £600 but the spa is willing to fund half for each advocate), that will result in instant new skills and the opportunity to earn extra money independently and locally during these difficult economic times.
The Royal Advocate scheme is a role that has been designed to give women the opportunity earn money at the same time as being pampered in one of the UK’s best spas. Each Advocate hosts a spa party at their home, inviting friends and acquaintances for a social gathering. The Advocate introduces the spa to their ten or so guests, outlining the fantastic facilities and treatments available at the spa by becoming a member.
How an advocate makes money: Every advocate receives 15% of the total sales generated from a spa party, on average £157.33 per party. Other benefits to the Advocate include receiving a complimentary entrance to the spa (usually £90) for each spa party they host, they can also build up treatment points to spend in the spa – 5% of every £1 they make, £50 to spend on treatments in the spa for every £1000 they make, and a 20% of all spa products. So it’s a great money earning and money saving system”
Now, I couldn’t see how this added up as a great business opportunity. It looks like it will be quite hard to earn the claimed £1000 a month, but I wanted a second opnion, so I asked Marian from Business Opportunity Watch. She says, ““I agree with you about the Royal Advocate scheme. It is clearly genuine, but I doubt that it is something you could really build up into a vibrant business. For one thing, it is only local so presumably Royal Advocates would be competing against other Royal Advocates to get customers. Also, the information provided by the company does not make it clear if Royal Advocates continue to receive a commission on all Royal Spa products and treatments purchased on an ongoing basis from customers they have introduced to the spa, or only on the products and treatments they initially ordered at the spa party. I have the impression that it is rather more an effort to attract new customers to the spa in the form of Royal Advocates themselves.”
So, not a great scheme unless you’re mainly looking to earn a free day at the spa. But Marian was able to let me know about a new business opportunity which she has reviewed and rates as a good one. She says, “I have found a good, new part-time opportunity which may be of interest to mothers and other visitors to your site who may be tied to the house most of the time but able to get out for a few hours at weekends. Have a look at Locally Grown Plants, featured on the public section of my site as an example of a Good Review of a Home Business Opportunity”
Here is a little extract from Marian’s review:
Normally, I’m sceptical about claims that anything sells itself. In this case, however, there’s no reason to doubt it. Go and have a look at www.GardenProfits.co.uk for yourself and see if you agree.Read more
It’s also one of the most promising new opportunities I have seen for some time – new, but simple, down-to-earth and proven.
The owner, Lee Wood, has 36 years of business experience, and he runs a Locally Grown Plants business himself. So does a person he taught who runs it in Scotland.
A business like this would often be sold in the format of a franchise, costing £10,000 or £20,000. This one costs just £571.55, although after three months you also pay a monthly fee of £29.97 to cover the ongoing support and advertising which you receive as a licensee.