Module 4 . Franchising

Network Marketing
Network Marketing
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 thousandsOverfamiliarity 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 contractLikewise, especially at marketing events people are weary of being recruited and may be resistant
Brand recognition already establishedThere 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
Network marketing benefits