The Villa Secrets business model is easiest if considered as a franchise. We create a dedicated website based on the framework of what you see on www.Cape-Town-Luxury-Villas.com. However, the look and feel will change and the user adds unique stock and repositions all villas within the navigation system according to their preferences.

 

There is no fee for creating this website, the system works on commissions.  Below we see a pie graph of how the commission is split. With 50% directly for the franchise owner, and 18.75% destined to advertising and expenses for the franchise owner with 6.25% paid to the person who owns the villa mandate or who placed the villa on the website if a preferential STO is offered. Lastly, 25% goes to Villa Secrets, of which at least half will be spent on system development.

 

 

Many estate agents and villa companies often work with 50/50 shared deals, as such within this industry 68.75% to 75% is a good return from any given partnership.

 

 

In addition to the dedicated website, each franchise will also receive enquiries from www.VillaSecrets.com

Villa Secrets is the hierarchal network partner to all websites, for instance, eight websites and companies will make up the Cape Town Villa Secrets network. As all individual websites are due to link to Villa Secrets, the mathematics suggests that Villa Secrets will do very well in Google. Enquiries will be allocated to the franchises directly; there will not be a direct Villa Secrets sales department for villa rentals, all enquiries will be answered by it local partners.

 

There are no costs for the development of your own website, including making API’s (connections) to your inventory system (if applicable).

Initially we will expect a $500 contribution to Goggle Adwords, advertising your website directly, however it is possible to get $250 vouchers for stating an Adwords account, so limiting your outlay to $250. In our experience by the time the $500 for AdWords is used up (in about 30 to 45 days), bookings have come in and the 18.75% advertising and expenses fund had enough to continue and increase advertising.

In terms of bookings, in its first 30 days trading, Cape Town Luxury Villas.com received 20 booking requests, worth $250,000 to owners if converted. In correlation in its first financial month end (April 2014) eight bookings were made, netting $70,000 for villa owners with a commission of $10,000 (R105,000).

 

There were no Villas from mandates and so this money was split:

$5,000 CTLV Franchise owners
$2,500 Advertising and Expenses
$2,500 Villa Secrets

 

Whilst this is a good first month, when Cape Town Luxury Villas is in the swing of things we are expecting $15,000 a month. This figure is contributed to by the gaining of Villa Mandates, from which bookings will be generated via booking systems thus guaranteeing an income.

 

At Villa Secrets, we advocate the collection of properties on exclusive mandate, this has been made easier by the look of the site, which has already had the owner of one of Cape Town’s greatest home’s offer an exclusive mandate.

We have created a very concise and engaging “Add your Villa” page. Please read this link and in particular look at www.cape-town-luxury-villas.com/info/PropertyMarketing/ExclusiveVillaCollection.html

Note that we have made a restriction of eight villas, this is the minimum amount of properties we would want on Mandate, if one gets over eight, we can build a second website.

The gaining of mandates is very important financially, as due to companies like Razor, one can be assured of a good yearly return, year on year.

Working on a low case example we expect an average mandated villa to make $14,000 over the year, hence eight mandates would equal $112,000 per year

 

 

In addition to money from direct bookings comes revenue from Villa Secrets, On Line Bookings, Mandated Villas, International Booking Referrals, Other Travel Arrangements, Excursions, Safaris and Property Sales.

 

Collectively, we are targeting that a franchise after 12 months trading should on average generate more than $15,000 per month in booking commissions. $180,000 in a year.

We will not remove the franchise if this figure is not met, but we will have a good look at ones motivations if one is significantly short of this benchmark.

 

 

In Goggle’s free Organic Search, it took less than three months for Cape Town Luxury Villas to rise to the No1 position for its target Keyword phrases: “Cape Town Luxury Villas,” “Luxury Cape Town Villas,” “Luxury Villas Cape Town” & “Cape Town Luxury Villa,” 

Again, in Google’s free Organic search, within five months CTLV is now on the front page of Google for over  300 different search terms.

These same results are to be expected for each web franchise, changing in priority according to the name of the website, where we expect www.CapeTownVillas.pro to be close to No1 for “Cape Town Villas” key phrases and www.CampsBayVillas.pro to be at No 1 for “Camps Bay Villas” key phrases.

 

Villa Secrets is a Google Adwords Strategy

It will cost only $500 in Google Adwords to get a good return on enquiries; the entire Villas Secrets system has been designed to advertise cheaply and effectively in Google Adwords.

 

In terms of domain names we have a few already that new franchises can use, for instance:

 

www.CapeTownVillas.pro, www.CapeTownVillas.biz, www.CapeTownVillas.info , www.CapeTownVillas.co,
www.CampsBayVillas.pro, www.CampsBayVillas.co, www.CampsBayVillas.info, www.CapeTownLuxuryVillas.pro, www.CapeTownApartments.pro, www.CapeTownAccommodation.pro , www.CapeTownRentals.pro

 

One can use one of our names, or one can source one’s own name, in either case the domain ownership will be registered in the primary franchise owners name, but only accessible via Villa Secrets.  

 

 

Each franchise owner will need to start a new company for their business, this is important due to Google’s Adwords policies, as the same company cannot advertise on the same keyword twice. However, different companies assisted by a web development network like Villa Secrets are allowed, we have taken this plan to Google Adwords and had no complaints.

 

When making the new company one needs to apply for membership from a bonding company, for instance in South Africa, SATSA, this is a small cost and insures all guests against company insolvency.

 

A declaration will need to be signed by all employees that that all bookings destined for the franchise stay with the franchise, and do not get re allocated to parent companies. The same applies to guest on arrival and re booking, at all times guests should feel they are with the Villa Secrets franchise.

 

 

An API is a connection, we are soon about to hire a full time programmer dedicated to creating API’s, first to Razor/Booking Pal and Knightsbridge (2 South African specialists) then Kigo and all other major systems. This will mean in most locations we have a portfolio of properties that can be booked live, for a small booking fee.

We can also make API’s from your current website to Villa Secrets and your own Villa Secrets website. If you have a lot of stock, or are constantly updating stock, we will make an API, so when you update your parent website you also update your new franchise site.