Network Marketing Cont.
|Pros (Advantages)||Cons (Challenges)|
|Compared to franchising, the cost of starting up is low; often a couple of hundred pounds rather than tens of thousands||Overfamiliarity with the agents drives fatigue amongst potential customers|
|Low entry barriers mean low barriers to exit; unlike a franchise where you are contractually obligated to serve out the term of the contract||Likewise, especially at marketing events people are weary of being recruited and may be resistant|
|Brand recognition already established||There is sometimes a ‘pyramid scheme’ stigma to network marketing which can be a barrier to finding new clients and also new recruits. Without sales and recruits you won’t earn any commission.|
|There may be limitations to how much you can earn; especially if you are among many operators in your area|