Lots of business opportunities trumpet the fact that there are “no franchise fees” or “no ongoing fees.” But is this a good thing?

As many of you know, I am an entrepreneur. I have started up my own businesses numerous times. I have several ventures at the moment.

One thing I really enjoy is being a member of the board of directors of a successful business. As a board member, I am expected to attend an occasional meeting and provide meaningful input and advice. I am paid for this. The pay is money but most of the compensation is in the form of stock options.

If I do a good job, and the company thrives. And my stock options will be worth a significant amount of money.

In other words, companies offer me compensation based upon how good I am. If I’m really good, I could help the company grow and I in turn will be richly rewarded. So I have a stake in their success.

Being a successful entrepreneur, I want a stake in someone’s success at this stage of the game. Fees are nice. But fees that are based upon how good I am, and how much I can help someone else…those are really nice.

I would think that most people who are successful think like I do. They will work harder if they have a stake in your success.

That’s why I think it’s essential that you find a franchise that charges an ongoing fee, preferably one that is tied to your success. A good franchise will charge you for services they provide, such as preparing marketing material. And they will charge you some type of royalty or percentage. If they don’t, then they have no stake in your success and I would look elsewhere.

I will here put in a plug for the as-yet non-existent franchise my client may put together, so please learn more about the home based business you can run from home — a litigation funding business.