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5 Advantages of Networking Marketing Over Franchising

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5 Advantages of Networking Marketing Over Franchising

Hey you started out a business of your own? Which one should you chose: Franchising or Network Marketing? Not sure which one is good, Let me uncover the good one.

Being a boss of your own can be done in many ways but these two ways, network marketing and franchise are the most effective them all.

Network marketing or MLM allows you to distribute a product that belongs to a reputable company. Thus, there is some level of branding already involved and consumers have recognition for product (similar like franchisees).

But there is a greater freedom in network marketing for developing unique distribution ideas and a free reign to market the business the way you like. Though network marketing or multilevel marketing (MLM) is most preferred than franchising, here is a rundown on the benefits of franchising before you can rely on the statement made.

What are the Benefits of Franchising?

You get the right to use the trade name of a brand and establish a centre of it in the locality you want.

Marketing and selling their products/services is relatively easier as customers are already aware of the brand and you do not have to put much effort in making your initiative known to potential customers. A new business without such backing, we agree, can be difficult.

Also, as a franchisor, you will have the freedom of managing national and local advertisements. If you want to sell the franchise, then franchisor shall help you search the buyer. In many cases, you get timely aid from the brand for your marketing activities, along with training for staff.

Why MLM or Network Marketing Could Prove to be a Better Option?

Network marketing and Franchising

1. Flexible Work Routine:

Network marketing or MLM grants you the ability to start with home-based business or through the online network. It has several perks, such as flexible work timings and not the regular work routine of franchise. You can spend a good amount of time with your children, spouse and other members at home.

2. Low Cost:

More importantly, this business module is a cheaper start-up and has lesser ongoing costs compared to managing a franchise. There is no money spent on organizing storage space or sourcing products, no inventory to manage.

3. Additional Bucks and Time:

There is no exact limit to the monetary income you make; you can earn as much as you want and live out that happy vacation, which the income from your franchise could not afford, because you had to save up for reinvesting the money elsewhere or pay for the salary of employees, or lacked the time for going to the vacation altogether.

4. No Disputes:

You are the only employee and may have to pay only a small fee sometimes to be in the network, thus no worry about internal disputes, payroll or settling issues between other employees. Money you spend on commuting to franchise location can be saved and thus spent on other priorities.

5. Help Yourself and Others:

You can pursue MLM full-time or part time. There is no requirement for extraordinary sales ability as a large market of consumer already prevails. You will help change the life of others and simultaneously help out yourself.

Thus, if you want to start a business and consider franchise as an option, you may want to try out network marketing instead.