These avenues for revenue, while presenting the potential for riches, are greatly different after you get pass their respective histories and specific product offering. So, I researched them. Because of the hybrid systems within each industries and vast number of success and failures within each, I choos

So, when evaluating the two systems, here are the summaries. To purchase a franchise, one would need a lot of cash to invest, typically from $50,000 to $275,000 total. One would also have to be dedicated to following a system where deviation is not allowed. The franchisor is offering name recognition, which attracts customers instantly to your location; training, which minimizes risk and assures success and a promising future.

I prefer to blend the two. Starting a company that has an excellent product, name recognition, formal training from a leader in the industry and a sales force that is motivated yet inexpensive, is the answer to my question. I desire to start my own company, utilize network marketers to sell my product and then franchise that company.

Network Marketing’s history was not far behind franchising. It started around the 1940s. Its most notable practitioner was California Vitamin Company (CVC) founder Carl Rehnborg. Mr. Rehnborg was the first to formulate and implement an incentive plan that allowed distributors the receive commission, on top of their regular commission, on the sales of the individuals under them or what is now called their “downline”. This system separated CVC from its direct marketing competitors and resulted in much success. However, it was Rich DeVos and Jay Andel, who started Amway, which refined and propelled the network marketing system, as we know it today. It was Amway’s sales volume that dwarfed the success of direct marketing and launched a marketing revolution. Historically and today, revenue is made by selling a product or products, selling the opportunity to become a distributor and by receiving commission on both.

The fees associated with network marketing are not as high. Individuals may become distributors of varies network marketing companies for as little as $100. In most cases, to receive the highest commission, the distributor must reach a certain sales volume and pay in the next level, sometimes as high as $500. While there are no royalty fees, the representative may be required to purchase a certain number of items or maintain a specific number of downline distributors or customers to receive commission. Advertising fees, though not as high or on a percentage basis, is collected in the form of meeting dues to pay for hotel seminars and in the form of purchased brochures by the representative. Still, the total is a big difference from the total out of pocket investment for a franchise.

The cost is a major deciding factor on which system to select. The typical franchise initial investment/franchise fee ranges from $20,000 to $75,000. Next, one must pay the fees to purchase the equipment, construct part of the exterior and interior of the storefront. This is called the cash investment, which could range from $50,000 to $200,000. Those are the cost to get open. After you are open, you must a royalty fee, wh

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