Top 6 Reasons to Choose Network Marketing Over Franchise
Before I go into the 6 reasons why I pick Network Marketing Opportunities over Franchises - every time, let me share with you next. I come from 3 generations of self-employed. I was privileged to a complete a personal and confidential insight into many different businesses, franchise and non. From the opportunity research, to market research, to due diligence. I also evaluated businesses as a business broker in my early days. Needles to say, I think I know a thing or two about owning a good business. Having said that, let's talk about the bad and the ugly of Franchise Opportunities:
Lease: most of the franchise opportunities out there will require you to have a space according to their specs, which in most cases is a leased, retail space. This investment is one of the biggest and major investments you will make, besides your inventory and we will discuss that in a minute. To get the best rates on your lease you will usually have to sign a 3-5-year lease, and it will consist of the base rent and the shared rent. The shared rent is made up of utilities, and maintenance of the common areas in the building. So what you agree on as rent amount is only part of it.
Network Marketing - no lease requirements. You move, your biz moves...no big deal, all you really need is WIFI and a cell phone. Your bedroom, your office, your backyard pool, sandy beach, snowy mountains, gulf course...it will all work.
Space/Construction/Equipment: the space itself, fixtures, and equipment in it are required to match the specs laid out by the franchisor. When they deem it needs to upgrade, you have no choice but to make an additional investment and upgrade. They choose the design, the colors, the set up, the fixtures and so on, even if you have a better, more efficient, or more economical idea. The amount of the investment in your space is therefore, dictated by them, not you. And you will NOT get it back if you get out of the game too early.
Network Marketing - no retail space or special equipment required. These days everybody owns a computer. If you want to get fancy, get a wireless network card and take your work places.
Inventory: one of my biggest pet-peeves is inventory. A ton of money invested in something that sits on the shelves while you hope and pray the customers come and buy it. Even though, on an average it takes 3-6 mos. before things start somewhat moving and shaking, a lot of franchisors will require you to keep buying inventory through that period.
Network Marketing - no inventory requirements. It's all online and shipped from the home office directly to them.
Marketing Cost: if I've heard it one time, I've heard it a thousand times. When franchisees start negotiating for their marketing, they are often told by those companies, that they have seen people with the same company come and go and they do not have the marketing plan detailed correctly; therefore, they need to really spend a lot more than what their home office suggests. Many times that is true, if you did not do good due diligence and did not pick the company who has it right. But you are under tremendous pressure to make the franchise fees/royalties to the home office, and you don't have much room for "testing" the market on your own. You have to bet it all on red or black. Feeling lucky yet?
Network Marketing - no spending amount required. You call the shots.
Staff: My other biggest pet-peeve. Most of the new franchisees pick the wrong type of staff or tend to overpay them. And here is the kicker, when they don't show up for work, and you are not overstaffed, YOU have to go do the work yourself. Believe it or not, I had people not show up to pick up their paychecks. I kid you not. I've seen it all.
Network Marketing - no staff required. You decide how big you get, and you do not depend on ANYONE but yourself.
The choice is clear: less upfront investment, less liability, and by far a lot more independence. Network Marketing is sweeping the entrepreneurial playground.
Come and play "Millionaires" with us.
To YOUR ultimate success,
Aleksandra
M2 Certified Master Consultant Ultimate Life, LLC
About the Author:After 14 years of success in sales management training, real estate, and financial industry, Aleks, an M2 Certified Master Consultant, is en emerging top leader in her company. She is under a direct mentorship of a top female producer – an extraordinary and explosive duo you WANT on your team. To learn more about working with me, please visit me at www.UltimateLifeWealth.com.
To YOUR ultimate success,
Aleksandra
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