Franchising vs Network Marketing

Franchising vs Network Marketing

I love social media because it allows me to follow so many different types of people – business leaders, innovators, entrepreneurs, etc.

One of the people I follow is Emily Vavra, a very successful entrepreneur in the network marketing business.

This week she posted a comment about franchising versus network marketing. 

In it she referred to the pros and cons of both but specifically about start up costs, return on investment, stress levels, type of business and so on.

You can read it here – ” interesting observation about network marketing versus franchising.  A friend of mine starts a pizza franchise, costing him upwards of 50k just to get it started. He’s losing his rear every month and not even close to taking a profit.  He’s stressed out, freaking out, and ready to lose everything… both financially and emotionally.  All his friends ask about his pizza business. “Hey Greg! How’s your pizza business going?” All the while, he is getting crushed and not making a dime.

Yet… get this. The same dude starts in a network marketing company… And not ONE friend EVER even bothers to ask him how his business is going.  He starts his network marketing business for $500 (not 50K)…and turns a profit in his first month. By his third month, he’s making a couple grand a month.  Interesting. Still… none of his friends ask about his network marketing business. Hmmm…”  – Emily Vavra, internationally renowned speaker and self-made millionaire

It got me thinking, which I am sure is what she wanted me to do.

You see I was a franchise owner who later became a network marketing professional. 

I experienced the points that she referred to in her post. I could identify completely with what she was saying.

My start-up cost for my franchise far exceeded my costs for starting my network marketing business.  

As a franchisee, I had so many staffing headaches.  I worked long hours, sometimes 7 days a week. I had high expenses (rent, personnel, inventory).  And I never got the return on my investment that I expected.

With my network marketing business, on the other hand, I controlled my schedule, had low overhead, got the return on my investment within a year, and made some amazing money.  It was as simple as that!

So why is it that people look at network marketing as not a real business?

Is it because you don’t have to invest the hundreds of thousands of dollars to ‘buy’ your business (franchise).  Emily refers to that stigma in her post.  I think she is right. If it doesn’t cost a lot, it can’t be good, right?

I am not saying you should not invest in a franchise.  If you have the money to invest and the conditions are right then go for it.

However, in this day and age, most start-up businesses fail. Why? Because, for one reason, the high costs to get going can put you in a major hole before you even get started.  

Consequently, half of all start up businesses don’t make it to the fourth year.

So I ask you.  Do you want to be a statistic or a success? 

Get rid of your stigma about network marketing today.  I say this because I was one of the skeptics who thought it was not a viable business, but was I ever wrong.  Once I evaluated it for myself, I realized this could be a good option for me and now I help leaders create their freedom lifestyle. 

The model works.

Is it for you? Only you can decide but don’t discard it because of the ‘stigma’ around it.  Do your due diligence and that goes for any business opportunity.  

That is why I wrote my book Creating Freedom to help you understand the network marketing model and do your own ‘due diligence’.

“If I would be given the chance to start all over again, I would choose network marketing.” – Bill Gates

So many people have been successful with this business model. If you want to learn more about franchising vs network marketing, feel free to contact me here.