Blog Posts

It’s Not a Pyramid! The Truth About Franchising From Home

It’s Not a Pyramid! The Truth About Franchising From Home

  • On
  • By
  • Comments Off on It’s Not a Pyramid! The Truth About Franchising From Home

It’s Not a Pyramid! The Truth About Franchising From Home

“Network marketing is one of those pyramid things, right?” Have you ever heard that before?

We all have! It’s the most common objection that people have to getting involved with you as a customer or business builder. Today I’ll share with you 2 ways to educate uninformed people about the opportunities available in the home business world and how logical and simple this business model is for creating a successful and sustainable business that is not only legal, but it’s profitable and fun.

First let’s get this question answered. Is it LEGAL? Did you know there are over 5,000 direct sales companies that adhere to or exceed both the state and federal guidelines for operating a business just as any business operating in the United States would have to adhere to? Whether this model is legal or not is not in question. A business can simply not operate unless they adhere to national and state regulations, so that throws that argument out the window

Now let’s talk about how you can better educate your friends, prospects and skeptics to help them understand pyramids.

  1. A pyramid is a very simple form of business structure that is seen in all kinds of businesses. Think about real estate. Who makes more? A realtor or a broker? A broker of course. Why? He or she has taken on added responsibility to bring in realtors, and train them on their systems and help them be successful. The more successful their realtors, the more money they make. They make a percentage of commission of each sales of their realtors, in addition to making a commission off of their own sales.

The same is true with traditional franchises. A franchise owner, let’s say a Subway owner, earns money off of operating their own franchise. They can take on added responsibility and open more franchises, and earn more money by training more people to run their stores. Above them is the corporate office who benefits from each and every Subway franchise owner who has bought into their system, and is successfully running their franchise.

In the direct sales and marketing industry, the same model holds true. You are simply building a business based on sales to customers directly, and when needed, training others to open their own Franchise From Home. When you do this, you make money based on your own sales and the sales of those people you’re training. This leads to point number 2.

2. You are rewarded monetarily when you help others become successful. If I am recruiting new people and not training them well, they will not see success in their business, and I will not be paid. However, if I invest my time and I improve my leadership skills, and the people on my team do well, the company will reward me by providing me with payment based on their success. This is logical. Time is money and by creating this structure there is an incentive for me to help others to do well.

Not only does that benefit me personally, that benefits the new business owner and their customers, and that build benefits the corporate as a whole. So, you can see this is win, win, win for everyone.

To conclude today, if someone says are you in one of those pyramid things, I encourage you to ask them to clarify.  You can simply say, “What does that mean?” and see what their answer is. Then, when you explain that direct sales and network marketing is simply a model for Franchising From Home, the way someone would operate a traditional franchise, it all makes perfect sense.

I hope this was helpful, and please feel free to share it with those on your team, and those skeptics in your social network who might not understand the power of the business model you have decided to build.