Comparing Franchises and Network marketing businesses

It is quite common for people to compare the profession of Network Marketing to Franchises.  After all, both are relatively new business structures (having been around for under 100 years).  Moreover, they both allow people to own businesses within a successful system.

We are all familiar with well-known franchises such as McDonalds, Holiday Inn, Domino's Pizza and the like. However, many still don't understand how this business model compares with Network Marketing/Multi-Level Marketing (MLM).  Are you ready?  

Here's the key: Network Marketing brought the idea of franchising to the masses.  It makes starting a business more affordable, with greater support and with the same high-reward potential seen with traditional franchising.  

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Here's an example: 
The Mindset of a Seasoned Traditional Franchisee: 
"I have McDonalds locations in NYC, Atlanta, Detroit, LA, Boston, and Dallas.  Each location, including my own, is bringing in customers.  I invested $1,000,000 for each location, and earn a percentage on all sales from my stores.  It was worth it."

The Mindset of a Seasoned Network Marketer: 
"I have business partners in NYC, Atlanta, Detroit, LA, Boston, and Dallas.  Each location (partner), including me, is bringing in customers.  I invested $350 for my up front investment, and earn a percentage on all sales generated in my network.  It was worth it."

Similarities between Franchises and Network Marketing Businesses
Both produce a wide range of viable products and services
Both provide a proven system and blueprint for owners to follow
Both require an investment to launch
Both provide training and support to owner-operators
Both are multibillion dollar industries 
Both rely on customers to drive sales


Differences between Franchises and Network Marketing

Franchising

Network Marketing

• High Investment (typically $25,000 to $1 Million)
  
• Is normally a full time venture
• Opening a new location requires building another store
  
• Last profits typically depend on your personal customers
• System of duplication is very rigid and enforced
• Limited ability to open multiple points of distribution (enforced by various rules imposed by the franchisor)

• Low Investment (typically under $500)
  
• Is normally a part time venture
• Opening a new location involve recruiting distributors
  
• Lasting profits depend mostly on the customer base created by downline distributors
  
• System of duplication rigid yet not strictly enforced
• Virtually unlimited ability to open multiple points of distribution worldwide (where company operates)

Which is best for you?

The answer depends on you.  Most people simply do not have the resources to invest in a major franchise.  I remember attending a franchise workshop where it was commonplace for new owners to borrow against their home and other possessions to launch a franchise in the hope of achieving success.  If you are adverse to a five or six figure investment, franchising may not be a wise move.  Yet others may have the resources and passion to pursue franchising.  However, I am very biased in favor of the network marketing model.

A friend of mine who is also a top earner in our network marketing business used to want to be a franchisee for years.  He and several members of his family spent plenty of time researching various business systems. However they ran into these common issues: the businesses that made sense were too expensive to invest in.  And on the flipside, the businesses with a lower investment didn't seem to make sense.  Upon learning about our business, they decided to take a closer look and today they, and so many others, became multimillionaires.  Nonetheless, whichever business model you choose, be sure to do your due diligence and follow the system!

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If you're seeking more information on this incredible opportunity, click here.  If you're looking to enroll and are seeking a sponsor, click here or get back to the person who referred you to this site!  

Cheers!
Ricardo Suber


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