Micro-Franchising Through Network Marketing
Burger King, McDonalds and Subway are some of the best known franchise businesses in the world. Each year these companies add large numbers of new locations to better serve their ever expanding customer base.
Each of these companies uses a franchising model to tap into a larger segment of the consumer market. In a franchising arrangement, a company sells their business model and operational system to approved business owners in exchange for an upfront franchise fee and ongoing royalties.
Costs for establishing a franchise can run anywhere from $30,000 to $1,000,000 per retail outlet for a well-known franchise, while a lesser known franchise may cost anywhere from $3,000 to $150,000 per outlet.
So how does franchising relate to network marketing?
On many levels network marketing is very similar to a traditional franchising arrangement. The primary difference is the lower costs associated with a traditional MLM business. This means that that it is very easy to set up and operate on a small scale. In this type of business, you are able to open up your own outlet without the burden of high overhead and operating expenses. Amazingly, you still get to enjoy the earnings potential that a traditional brick and mortar type business would offer, without the high level of capital risk.
Network marketing has allowed home based business owners the opportunity to take advantage of the franchising model by providing an easily replicated, low-risk business opportunity that has already been tested and proven. In this business model, you don’t just earn income from the sale of your products and services, but you are also compensated for the sales generated by the your personally enrolled sales team.
It is this ability to leverage no only your efforts, but the efforts of your organization that allows the business to produce sizable amounts of profit. This is why network marketing is often called “The People’s Franchise.” This model of sales and distribution is based on many people— each doing a little bit.
As a network marketer, you leverage your time and energy by recruiting people to join your sales team in exchange for a portion of the commissions earned from each sale that they make. It is this leverage that allows many average people the opportunity to achieve an above average level of success in their network marketing businesses.
As with a traditional franchise arrangement, you can develop your network of retail centers globally. Thus enabling you and your network to create a “one world, one market” vision with the goal of influencing every opportunity seeker in throughout the world.
Unlike a traditional franchise, a network marketing business can be operated from either a mobile or fixed location. Being your own boss, allows you to experience greater freedom with your time and a higher degree of financial independence. It is entirely possible to use this business model to obtain maximum results with minimal investment. This low risk, high reward potential is one of the main reasons that so many people are drawn to the micro-franchising system of network marketing.
