December 15, 2008
Do you find it almost comical that people in MLM or Network Marketing compare their business to a Franchise?
Other than a system that is already in place being sold to individuals, there are ZERO simliarites between franchising and MLM.
Can you imagine any other franchise that would sell you the rights to thier operation with NO CONCERN for territotry? How would you feel if you bought into a McDonalds and suddenlty 10 other McDonalds appeared within a couple blocks? Any real franchise opportunuty limits the amount of respresentivies of that franchise in an area to prevent over saturation. MLM has no concern for this.
Any reliable franchisor generally provides audited books to permit proper due dilligience. No one in MLM would ever provide any evidence of any income claims (and its debatable if most MLMers even know what due dilligience means).
Any reliable Franchisor conducts relgular spot checks on the franchisee’s business operation to ensure quality of operation. MLM companies let thier reps peddle thier products anyway they see fit with zero concern for reputation.
Do you think this is becuase most people in MLM are not business savvy enough to see the obvious distinction?
Or is it that they are so emotionally charged by all the hype that they refuse to accept reality?
Whatever the case, whenever I hear someone in MLM suggest it is the same I have to chuckle.
Filed under Small Business by Peter
Comments on Do you find it almost comical that people in MLM or Network Marketing compare their business to a Franchise? »
The reason that MLM use the term franchising is to because most people already have negative perception of the word MLM.
You are right about the market saturation. Another point that franchise can be called franchise is the business is already well-known and people already start to ask to partner up. In MLM that is not the case but instead the company is using dirty technique to ask other people to partner up.
The few MLM people at high level surely know the difference. But they do not want the people at the low level to know it. In fact the kingpins want to confuse people as much as possible. You can say that you cannot do MLM if you have a clear mind.
I am into MLM and I have no problems with anyone wanting to see my books. I was never told I would make thousands, instead I understood that whatever money I make would be up to me, depending on the time and effort I want to put into it.
I have enjoyed incredible support from my upline and from the company itself. I am very pleased with my choice, I get a cheque every two weeks, not for thousands, but for a substantial amount, considering I have only been involved for six months.
You shouldn’t make broad statements about MLM, obviously there are reputable companies out there as well as scams, the same as it is with any other industry.