How does network marketing differ from a franchise opportunity? Usually individuals will associate with a parent company on the basis of being an independent contractor or franchisee – the remuneration comes as not just by the products they sell but by the sales efforts of those recruited into the business.
One can liken this in certain aspects to some franchise opportunities whereby royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or regional manager.
With a franchise business, you usually acquire the rights to an exclusive territory and you then have to market the branded product in the territory. In return you have to pay an initial franchise fee and some royalties to the franchisor.
Network marketing unlike a franchise opportunity is based upon not only selling the products that the organisation produces but also from building an organisation around you that would follow your steps and duplicate your efforts. You make a percentage from the chain you created.
This is one of the most powerful concepts of network marketing making it possible to earn from the efforts of others but...
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