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Saturday, February 14, 2015

Traditional Business Versus Personal Business Franchise

Stating the Obvious...

Whenever we hear the word Networking, Network Marketing, Referral Marketing and Etc., people tends to raise eyebrows or laugh about it. They often think it's a SCAM, well I cannot blame anyone for that mentality because I also think that way before. Pyramiding schemes are everywhere hiding in plain sight, being advertised on air and other sorts of advertisements. We took pity on victims being interviewed in our local TV news, poor people with dreams to live well someday and escape poverty, that makes them an easy prey for scammers. Lack of vigilance and knowledge about the what they are into is what drove these people off the cliff. There are lots of guidelines available to distinguished pyramid scams to the legit ones, here is my version; my other post about it - Guidelines For Choosing A Good Network Marketing.

Leading corporations use the same concept if you haven't noticed yet. It's called leveraging - multiplication of oneself through others. Richest, people in the world doesn't have all the education and skills they need to become rich, all they need to do is find an asset with the expertise on that required field of study and hire them to do the work. All business is made up of network of working individuals with different qualification. From CEO to the lowest paid employees, check the organizational chart and it's a very common structure -

The Legendary Pyramid. 




Large corporations like some famous fast food chain use a system called franchising. Basically this is a network of individual business owners working inside a corporation. These individual business owners pay a huge investment fee a.k.a franchise to plug themselves into the network and gain access to services offered in exchange for the investment. This is also the system that network marketing companies use. The difference in traditional business and network marketing business is; in traditional network building you'll need to have lots of capital to start a business or hundreds of thousands maybe millions to tap into their system as a share holder, while the latter only require minimum investment fee entitling you to use the company's assets, services and facilities. In business term, this is called personal business franchise. See the similarity?

Factors to consider in building a business:



Traditional Business:
  1. Idea - first you need to know what you're business be like.
  2. Capital - money to fund your business and expenses while still in process of building the business.
  3. Location - where your business be located and consumers to market products or services.
  4. Business Registration - Process to legalize your business (DTI, SEC)
  5. Merchandise - what are your products or services to sell.         
  6. Employees - people to mobilize your business.                            
 Network Marketing Business:
 
  1. Capital -   money to fund your business and expenses while still in process of building the business.
  2. Employees - people to mobilize your business. 








Since network marketing companies are already a established traditional business, they already provided the Idea, Location, Business Registration and Merchandise. All you need is the capital and people to help you mobilize your business. Furthermore, these companies provide a vast educational system to help you build your business, boost up self confidence and lift up fighting spirit.

Remember that equal amount of opportunity is offered to all members depending on their productivity. So if you think that Network Marketing is a quick "GET RICH" scheme, sorry but you need to educate yourself more my friend. Open your eyes and mind.

Well this is a metaphor; as a working individual you are already a workhorse working for a superior workhorse working altogether for the human who owns the ranch, who gets all the good stuffs dude? Working hard as an employee doesn't mean you'll own the company one day, the line is way too long before you so it would be heart breaking to keep your hopes up too soon. Don't be mad because I'm taking you in some point somehow so keep on reading instead.

 Now let's apply this to a network marketing business. Don't complain if the one on your upper level gets the good stuffs first because you didn't bother to complain working for your supervisor or manager right? You cannot fire your boss if he/she's lazy, same thing you cannot fire your uplines in Network Marketing Business but, here's your good stuff - This is what I can promise you, compensation plan is normally base on someones productivity and not just by being early, sure you cannot fire a lazy upline but you can surpass his/her earnings. Because if a member become stagnant, the system cannot work for them, thus no commission will come to them. Otherwise, if you excel in managing your business and properly using the system, possibly you'll become the boss of your own organization and same opportunity goes out to each and every one under your management following the system. Take note on "Following the System", meaning "Working Not Waiting!". This is a job and a business at the same time after all, understand?!



















"Feed your mind"

Blowfly

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