Franchise Vs. MLM
What are some differences of a Franchise vs. MLM? Both seem to possess the same qualities of selling products worldwide...right?
Let's review first!
Franchise...
1. | a privilege of a public nature conferred on an individual, group, or company by a government: a franchise to operate a bus system. |
2. | the right or license granted by a company to an individual or group to market its products or services in a specific territory. |
3. | a store, restaurant, or other business operating under such a license. |
Examples
- 7-Eleven Inc.
- Subway
- Dunkin? Donuts
- Pizza Hut
- McDonald?s
MLM???
.....also known as Network Marketing is a business distribution model that allows a parent multi-level marketing company to market their products directly to consumers by means of relationship referral and direct selling.
Examples:
- Amway
- Mary Kay
- ACN
- Monavie
- Primerica
Typically when I think of franchises, I think of store fronts, restaurants etc. The 5 examples I listed for franchises are actually of the Top Ten Franchises for 2008 (listed at Entrepreneur.com)...8 of those 10 being restaurants. Franchises can also be very expensive. True, you can make a lot of money with a franchise, but, one can surely obtain a lot of stress and debt with loans and upkeep costs. Other examples of franchises
can be nail salons, barber shops, flower shops etc. All of which are
great investments, but most cannot start OR maintain a franchise for
that matter because of loans, bad credit, past bills, etc. That's not to
say it can't be done but for the majority, the path can be a struggle.
When I think of MLM (or network marketing), its somewhat the same but different in other ways. With MLM, there are no huge investments as compared to thousands of dollars invested into a franchise. One of my mentors told me before, "If you get started for a few hundred bucks and it doesn't work, what have you really lost?" MLM works depending on the company.
Robert Kiyosaki and Donald Trump (2 franchise owners) recommend network marketing in their book titled, "Why We Want You To Be Rich". You can also research the internet and view videos with Robert Kiyosaki explaining the mlm model.
My bottom line...if you can afford a franchise and that's what you want to do, by all means go for it. I would advise you talk with current franchise owners and your city/state ordinances for educated information. If you're like myself and would like to pay a minimum investment and receive maximum rewards, take a look into the mlm arena...you may be surprised. . When I chose to take a look at the home based business mlm model, it turned out to be the best decision I could have ever made.
Good luck in your research in finding the truth of Franchises vs. MLM.
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Much Success, Stay Blessed & Thanks For Stopping By.
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