I was just thinking about this a while ago and I decided to write something about it. Are you better off starting a franchise like McDonalds or you are better off starting a Network Marketing business? So to simplify this, I am going to compare starting a McDonalds to starting a typical Mlm business. So here we go;
To start a McDonald’s franchise, you need a $250,000 of non-borrowed personal resources. Let me rephrase that. You need to have $250K in cash before the McDonald’s Corporation can even open your file to start discussion. A typical Mlm business will cost you around $500 to start. The high end direct sales business will cost you anything from $1000 to $2000. It is obvious that it is easier to start a Network Marketing.
$250,000 is not all the cost that is required from you. Other cost
includes real estate, signage, seats, equipment, decor, opening inventory, training and working capital. Starting a new McDonalds franchise will required $118,375 to $1.8 million investments plus a 12.5% ongoing royalty fees. To start a Network Marketing business, the only equipment you will be buying is a pen to make your list and a computer which I have a feeling you already have. It might be better for you to set an area apart in your house for office. But boys and girls, this comparison is a joke.
Ok, all these might be justified if they are making some huge amount of money. But here is another fact for you. Just to simplify this, a McDonald’s franchise owner is expected to earn 10% of the sales for each restaurant. The average annual sale for a restaurant is $2.37 million in 2009. So what is 10% of $2.37M? If you say $237,000, you are correct. In other words, you will invest $118, 375 to $1.8M to make $237,000 in a year. On the other hands, with network marketing business, with an investment of $500 – $1000, you have the potential to make $237,000 in a month. That is in ONE MONTH. Again ladies and gentlemen, THIS IS A JOKE.
What about the employees?
With McDonalds you will have to employ
employees that will be working for you. You will need a cashier, store manager, assistant store manager, etc. Depending on the location, you might even need to higher a police officer that will be there as security on part time basis. With the MLM business, no employee is needed. You are in business for yourself (but not by yourself). Perhaps you became one of the top earners and became too busy; you might decide to have an assistant. If you are thinking in your mind; what about the organization that you are building? The People in your organization are not your employees. They are your business partners. Plug them into the system and keep looking for the next superstar. I don’t care what anyone is teaching out there, if you get stuck in the management mode, you will not make any money in the network marketing business.
Ok why am I writing this?
Many of us are still undercover Network Marketers. Your closest friends don’t even know that you are in the MLM industry because you are scared of what they will say. Snap out of it. You have Diamond in your hand. Walk with your head up. Network Marketing is the best industry alive.
During Mlm recruiting and the prospect told you that they don’t have the $500 to get started, please just walk away. Lol..Ok don’t walk away. This information is one of the ways you can respond to the objection. Understand that they simply are not seeing the vision that you are painting. Some people will not see it. That is ok. The money is just an objection that they decided to give. Do not welcome it. Move on to the next prospect.