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Network marketing v franchising

I was chatting to a good friend of mine recently, who owns a few franchises, of one of the biggest name businesses out there. Interestingly, he also has a network marketing business. A few things struck me:

*It costs him around £150,000 for each store he opens, in start-up costs.
*Most people who could become a customer actually walk straight past his store, so in theory he gets lots of no’s, even with a major worldwide brand.
*In income terms, once all the bills and wages are paid, he makes less income from each store less than many of the top 100 distributors in his network marketing business (and in many cases they have been working their business part-time, the same length of time he has had his stores).
*For that privilege, apart from all the health and safety issues that come with dealing with food and the public, he has the pressure of paying salaries to many staff each month, whether or not anybody buys a single one of his foodstuffs.
*Oh and he’s just had to pay a non-negotiable, contract-binding £35,000 to have a store refit. He HAS to do that every seven years whether he wants to or not. Only one item (a new £4k machine) actually offers him the chance to earn any extra income. In those costs include a wall picture for £78!
For refits alone (there are other ‘fees’ he has to pay too) that works out to £5000 a year. Approx £400 per month.

…..And to think some people want to kick off about their network marketing company having a £4/month renewal charge or $5/month to keep their website live. ‪Welcome to the real world.

Sometimes we just have to look up and thank our lucky stars!

‪Do you know what you have got‬???

If this strikes a chord with you, please feel free to leave a comment, like it, tweet it, kiss it and to share the article.

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About Wes Linden

Wes Linden
Wes Linden has never had a conventional job, having failed to complete his degree and drop-out long before completing it. Yet he came across a network-marketing business and has worked with that same company for over 15 years. Having built one of the largest and most successful organisations with an expected team turnover of £60m (over $100m). He's an Amazon best-selling author and international speaker at network marketing events around the world.

2 comments

  1. It amazes me when people say ‘ I’m looking to start a business, yet in real terms, what they’re saying is they’re looking for someone to tell them what to do in a more expensive way.

  2. Good article it’s good to remind myself what a good business UW is.
    Nothing worst than having lots of up front costs in a business

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