Network Marketing & Franchise Opportunities

How does network marketing differ from a franchise opportunity? Usually individuals will associate with a parent company on the basis of being an independent contractor or franchisee – the remuneration comes as not just by the products they sell but by the sales efforts of those recruited into the business.

One can liken this in certain aspects to some franchise opportunities whereby royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or regional manager.

With a franchise business, you usually acquire the rights to an exclusive territory and you then have to market the branded product in the territory. In return you have to pay an initial franchise fee and some royalties to the franchisor.

Network marketing unlike a franchise opportunity is based upon not only selling the products that the organisation produces but also from building an organisation around you that would follow your steps and duplicate your efforts. You make a percentage from the chain you created.

This is one of the most powerful concepts of network marketing – making it possible to earn from the efforts of others but carries with it a burden of responsibility – one needs to teach the people in their organisation and also help them to increase their sales volume whilst building their own organisations.

Companies that have decided to embark on the MLM route organise seminars and events with the purpose of teaching their representatives the most efficient way of doing those two things.

How does one choose the exact company / business to become involved with?

The essential ingredients of the choice are the qualities of the person that is introducing you and the company itself – is the company well funded? Are the resources there to see through a bleak period? Are the products conducive to residual income or is it a purchase made once every 4 or 5 years?

The best business opportunities come from companies that distribute products that people will actually use both from a usability point of view and the price structure.

In my own experience of network marketing, it is crucial to have a product that people can relate to, and, following the old sales strategy, that they can see the benefits of – it also has to be something that is affordable and useable.

Again, in my experience, there are many companies offering their products for sale using one of the most ,if not the most affective marketing systems in the world – by definition the system is so effective in part due to the number of people it involves.

A great misconception held is that it is the same as pyramid-selling – this is not the case and the whole system is designed so that everyone can make money rather than the profits being distributed in an unfair way.

Most of all, though I personally think that one should examine the products carefully as they will ultimately lead to sales – and the bottom line is that if products do not sell well, irrespective of what it is, then the company will ultimately falter. It is also important to find products that have repeat sales so that you can generate a residual income stream from all your efforts.

The choice of what company to be involved with or what industry one’s particular interest is held for is, of course up to the individual but I think that it is important to keep one’s business head on whilst evaluating the concept – what one enjoys may not necessarily be the money-spinner.

More topics: Franchise Opportunity, Franchise Business, Franchise, Network Marketing, Business Opportunity, Business,

NetMarketZine is an officially authorized and remunerated associate for recommending high quality products found on this website. Links on this website may be associate links which means if you click on a link of a recommended product, I/we may receive monetary compensation. However, this does not affect any unbiased information presented on this website. The owner of this website is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon properties including, but not limited to, amazon.com, endless.com, myhabit.com, smallparts.com, or amazonwireless.com. Additional affiliate programs and networks may include Avantlink, CJ, Clickbank, Walmart, BestBuy, AliExpress, and others.

You May Also Like These Topics...

Bitcoin Could Possibly Sink Even More, But You Can Still Profit with the Staff at the Blockcharter.

Blind hope for a recovery or perhaps a bull run is one thing every speculator has experienced at least one time. The Professionals at JP Morgan have forecast that Bitcoin (BTC) could possibly tumble below $1,260, while banks will not likely reap the benefits of blockchain for a minimum of 3 to 5 years. (Reuters […]

Allegro.ai Launches New Startup and Partner Programs

After receiving investments from leading enterprises Hyundai, Samsung and Bosch, the enterprise focused deep learning computer vision startup allegro.ai is declaring the launch of two important enterprises – The Startup Program and The Partner Network. Founded in 2016, allegro.ai announced this week that it will be making its enterprise grade solutions available to selected startups that demonstrate the […]

Comparing Business VoIP Providers

VoIP has easily replaced the traditional landline. A lot of business owners prefer to use VoIP services and save huge amount of money that would otherwise be spent on efficient communication. Every business depends on internal and external communication to grow and VoIP makes it possible for the business to reach its potential with cheap […]

6 Features That a Data Quality Management Tool Should Have

Data has emerged as a key decision-making tool for businesses today. The data-driven enterprises gather information from all the sources it can, structures this information and then analyzes it to get rich and actionable insights. This data could relate to customers, suppliers or employees depending on the source it comes from and the people it […]

Tags: , , , ,
Previous Post

Training The New Network Marketing Distributor: Laying Down A Track To Run On – Step 1 Of 3

Next Post

The Benfits Of Affiliate Marketing

Leave a Reply

0 Shares
Tweet
Share
Share
Pin