Private Franchising and Power of Leveraging

Author: William Siong  |  Category: Internet Marketing, Network Marketing, Online & Offline Biz

Have you read the previous article on ProSumer Power? After knowing or understanding the Prosumer Concept, you might want to find out more about what you can do about it. You can either get involve with it or just ignore it. 

Instead of re-inventing the wheel to start a proper business the conventional way, you might want to find a short-cut to begin your money making journey, right?

 

IMHO (In my humble opinion), by becoming part of an established company that already had a system for building your business, e.g. MacDonald Franchise, your journey to success is very much shorten BUT how many people can afford it?


Let’s use an analogy of the MacDonald Franchise* to illustrate the Business process. (* To be have more accurate information, check with MacDonald Management directly!)


When you want to get involve in the MacDonald business, you will need to get a Franchising rights or License from  the Ray Kroc’s family and it will cost you a lot of money just to acquire it.

After which, you will still need to get educated about the business by attending Hamburger University, which span  between a few months to a year or two depending on your learning rate thus costing another sum of money too.  

You then need to find the right outlet and lease it for a period of time (usually 1 to 2 years) for your operation and that would cost you yet another large sum of money.

By the time you have graduated and start your business, you would have spent more than a million dollars* plus time spent learning the business process.

Let’s say you started to generate $100 profit on your first day of business, you will need to pay a royalty* of 4% to the Ray Kroc’s family as part of your franchising agreement thus leaving you with $96.    

What you do not realized is that MacDonald has 30,000* outlets worldwide, therefore they make 30,000 x $4 = $120,00 daily whereas you only make $96!  Can you see the difference?

You just cannot open another MacDonald outlet of your own without getting another License from the Ray Kroc’s family but MacDonald can (because they owned it!)

That is the Power of Leveraging, MacDonald being the Franchisor has the power to appoint Franchisee but not you!

What can you do then?

There is an ALTERNATIVE business model similar to the Franchising Concept above but it is much better. Some people called it Private Franchising whilst most people refer to it as Network Marketing, Direct Sales or Multi-Level Marketing.

You starts off by getting acquainted with the Manufacturer and then with the distribution rights received, you either sell their products personally or help others to sell those products. People you sold to becomes your personal clients or direct customers. It creates an instant income for you. This income can be use to fund your monthly commitment such as ARO (Automatic Re-Order) for products or services, meetings or convention expenses and others (Provided You are treating it like a business!)


If you are not, then selling those products will generate a form of surplus linear income that complements your existing income. Would an extra $200 to $500 a month address some of your financial challenges? Will you be happy if you can earn such an extra income?   

What’s if you want to earn more? No problem! The moment you became a Distributor of that MLM Company, you are like MacDonald (the Franchisor), you can choose or decide who to JOIN your business network to make money together. Better still, you can appoint as many distributors as you wishes into your network or organization. They will become part of  your business structure and you will be known to them as an UPLINE SPONSOR.


Then you will teach these “new” people how to do the business according to the SYSTEM you have learn from. You will also show them how to DUPLICATE the business the way you are doing it. In time to come, you will have a huge group of businessmen or businesswomen working together to generate the Passive Income everybody wanted. It’s a Win-Win situation for everyone in your business structure!


Similarly to the MacDonald worldwide outlets, the more distributors you have, the more commissions you will earn from the Company and NOT from your Distributors! Your distributors eventually becomes the ASSET of your business. They are like big and small houses owned by you and the monthly passive income is like the rental you are getting from them except in this case, its paid for by the Company for your commitments to the business.

That is very fair to everyone in the organization or business! The harder you work, the more you will be rewarded!


Let’s do some arithmetic here . . .

Imagine from Week 1, there is only you. By Week 2, you would found a 2nd person (your downline or business comrade) then you teach him to find another one including yourself. How many people are there on Week 3? 4 Persons.  How about Week 4 when you continue the Duplication Process? 16 Persons … so on and so forth.

Before the year ends, your organization would have at least a thousand people. What is great is that many of these downlines are having the same mindset, desire or positivity to build a lasting income in the business. CAN YOU SEE THE POWER HERE?  

 Would you rather spend 100% effort by yourself to build the business or Find 99 other people and each producing only 1% effort to build your business? Knowing this theory means that you know the Power of Leveraging and this Franchising Concept at its best!

 

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One Response to “Private Franchising and Power of Leveraging”

  1. Business For Sale in Brisbane Says:

    A good match between franchisor and franchisee, sharing mutual goals over the long term, is essential to the success of each franchise unit, and thus the brand as a whole – an essential factor that must be considered seriously by both parties before any contract is signed.

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