Which Is Better – MLM Or Franchise?


Nowadays, no one really wants to work under a boss because they all wish to become their own bosses. Hence, more and more people are opting to start their own businesses.

The areas which are gaining amazing momentum are MLM or network marketing and franchise. MLM marketing has some attractive offers to give to its employees right from commission to best MLM software.

On the other hand, the franchise has taken a lead because, with monetary benefit, it also helps in earning name and fame. However, people might get confused about what should they choose – MLM or franchise. Below is the overview of the same.

  1. The Costing: the cost while buying a franchise is definitely high because there are some pre-requisites of place, equipment, employees. For e.g.: if you are starting a franchise of any food joint, you will have to meet the norms of the franchise. They have some pre-defined areas where you are planning to start the joint, number of employees, and also an investment plan. If you meet these pre-requisites, then you can start your business, but it is definitely a costly affair. Unlike, in MLM, you have to pay money to buy products and are given thorough training for the same. This fee for buying a product is not a whopping amount and can be easily recovered by building a downline. Most importantly, MLM is a work-from-home opportunity.
  2. Competitive Market: while enrolling in a franchise, the parent company conducts research as to where there is a need for their franchise and where they can gain profit. Once you own a franchise, you earn the exclusivity of that area and no new competitor with the same franchise can arise there. However, in MLM your downline has no norms like these and they can target your area whenever they want. This may cause competition between you and you’re downline.
  3. Marketing Strategies: usually, franchises are more established and have name and fame on the market. They make use of established branding strategies and also print advertising which helps them in having a wider perspective. Whereas, in MLM, you have to convince people to buy and you might also have to go door-to-door, marketing your product.
  4. Compensation Plans: there is no compensation plan like the binary plan in a franchise. You earn a profit by directly selling your products and services that customers buy. On the other hand, in MLM you earn by selling your product too, and also from your downline. So, it is a win-win situation!

No matter what, both MLM and franchise have their own loopholes. However, whichever business you decide to start, depends on the investment you are making. So, think wisely and only then take forward your dream!

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