No commuting.

No premises to buy or rent.

Ideal for stay at home parents.

Work hours to suit.

Many people who decide to work from home have chosen Network Marketing as their prefered route. Network Marketing may sound like something that requires qualifications or years of experience but not so. In fact, it's a method of earning an income that is used by people from all walks of life from housewives, construction workers, doctors, window cleaners and so on.

WHAT IS NETWORK MARKETING?

Have you ever been involved in Network Marketing? If your answer is no, think again! Have you ever recommended a product or service to another person? We all have. However, the likelihood is that you received no financial reward for making that recommendation. You received a product or service you were happy with and happily passed that on to a friend or relative so that they could benefit as you did. That's Network Marketing for FREE! If you treated Network Marketing as a business, you would rightly expect a financial return for your efforts to direct others to this product or service.

How does it work?

Let's say you join a company that sells products or services. They may use a catalogue or website as a base for their sales and they offer you the opportunity to become an affiliate or distributor. The basic principle is that the distributors or affiliates actively sponsor others into the business which means the company do not spend a fortune on advertising costs. Some of the profit can then be passed on to the distributors.

While you can earn a substantial income from simply selling the product or service (retailing), the basic concept of Network Marketing is to build a team or network, large or small, that will earn you group bonuses and bring in an ongoing residual income. Network Marketing compensation plans vary from company to company but all are designed encourage team building where a group will share bonuses depending on turnover. Obviously, the more people who join your group, the greater yout reward. That's how you benefit from Network Marketing. How many can you introduce into your personal group? There is no limit. A common plan in Network companies is that a person can sponsor as wide as they please on the front level and can benefit from a group going 5 levels deep.

Is this a Pyramid Scheme?

This is a commonly asked question. Pyramid Schemes (which are illegal) have given Network marketing a bad name in the minds of some who confuse the two. Pyramids are basiclly schemes where often there is no product or perhaps a very dodgy one and people request money from others who will in turn make the same request and so on down the line. Those at the top of the pyramid win and those at the bottom lose. Network Marketing is entirely different.

In contrast to pyramid schemes, Network Marketing could be described as a system where team members share bonuses. In reality, a person who joins you as part of your downline, could become a higher earner as a result of building a larger and more productive team. While they will always be part of your downline and you earn as a result of their efforts, they could develop a team that goes well beyond the levels on which you earn, usually five.

Network Marketing Versus Franchise.

Franchises are a popular way of building a business of your own and many people have become successful as a result of buying one. This publication in no way downgrades the franchise arrangement but merely raises the subject by way of a comparison for the benefit of people seeking a business of their own. Buying a franchise usually involves purchasing a complete business package from an already established company giving you the right to trade under their name, use their company logo and perhaps be provided with equipment and premises to allow you to operate.

Buying a complete package such as this can cost thousands of pounds. You are in effect buying a complete ready to run business. This may involve finding a business loan or using your savings or redundancy payment in order to establish your franchise business. Many of course are not in a position to or do not have the desire to spend large sums of money in starting their own business. This is where we see one of the real advantages of Network Marketing.

In most cases, the start up cost of joining a Network Marketing company is minimal. Because you are effectively becoming a distributor or affilaite to the company, you are given the right to sell their goods or products and receive a commission on such sales. As an affiliate, you can also sponsor others into the business and be rewarded for doing so by receiving bonuses on the performance of all those in your personal sales group.

Examples of Network Marketing Companies

The business has been tested you're buying into a company with a proven track record, established system of operating, and recognizable brand, even if your brand/service is relatively new to the market, the franchisor has done the hard work of developing the products/services and the overall vision.

You don't have to come up with a business plan

Customers are comfortable with a familiar, recognizable brand that they rely on

You have ongoing support from your Franchisor and other Franchisees in the system that help you get through the start up phase

You and your staff will be trained both in business procedures and technical requirements

Start up cost are fairly predictable and you can verify actual experiences by talking to current and former franchisees

Disadvantages of having a Franchise:

According to a recent survey it shows a large percent of franchisors where charged an initial franchise fee of $40,000 or less, this doesn't include real estate, payroll, equipment, insurance, and other needs. Franchising normally requires a long term commitment, the terms range form (15-20 years).

Room for innovation is limited

Expansion maybe restricted

The franchise or is the final decision maker

Other franchises can effect your business

Its better to realize now before you've committed to a franchise that doesn't suit you, but even if you don't go ahead with buying a franchise you should fully be aware of the disadvantages.

If you have looked at all the pros and cons of franchising, and you still feel comfortable about it, then you probably could make a good Franchise.

Franchise is the place you hasten to- if you don't fear failure at every step, you are willing to work for an established name and toil and toil till the sun goes down- again and again. However, if surveys are any indicator, women are having the last laugh. Step in, Franchise business. According to bfa/NatWest survey 2007 forty five percent of franchise owners are women with eleven percent being the sole owners of the franchise. Now this is where you are permitted to say-Wow. Go ahead; say "wow" or "wah" as you please.

I can hear you ask-What is franchise? Franchise, in simple words, is an agreement between a holder of trademark, service mark or tradename and a person/group/institution to run a business for a fee. Some of the models of franchise are,

• Franchise of product/trade name: The product name/tradename of the product is sold by the franchisor
• Franchise of complete business format: The franchisor provides total assistance including site selection, training, marketing and sales strategies
• Social franchise: Social enterprise sectors help firms to set up business like soap making, candle making, hotel operation
• Event franchise: Holding events at different geographical location by different people under the same logo
• Distributorship: Franchisee gets legal rights from the franchisor to sell the products

A job would be difficult for a home maker with long layoff period. Imagine the interviewer with a grin on his face saying, “You, a home maker? You must be kidding.” In such cases, franchise is very attractive with its additional income and flexible working hours. Also, franchise gives women financial independence with low risks as opposed to starting a fresh business. Ambitious career women find it exciting to build and run a business with immense growth prospects. Students obtain a quick job which does not seek additional experience.

Owning a franchise is expensive as the franchisee has to confirm to all the necessary amenities like uniforms, staff, office, furniture. In addition, there may be expenses to cover royalties and adverts. The opportunity as such is easy to find with banks pitching with loans to start-up the business and, most important, the franchise comes as an all-inclusive package with training, support and operation manuals. What more should one ask for? I know-more.

Here's more. The franchisor even helps with outline of the infrastructure and marketing of the business. In fact, a continuous support is at hand.

But, hey, watch out. There are many franchises for sale and it's tempting to buy a cheap one without proper planning and interest. So there are some points to bear in mind for a woman on the threshold to start a franchise business. Firstly, the entrepreneur should look at her interest. Second, she should see if her skill set complements the job. Thirdly, the franchise should be easy to handle and come within the purview of the allotted money.

The Olympics is well on its way and coaches are the flavour of the month. It wouldn't be a bad idea to have a franchise coach to guide in the initial stages, especially for women who have had a long off work. Instead of groping in the dark, hiring a coach can streamline the business. The coach can be taken as a small investment.

As in any marriage, the two way relationship between the franchisee and franchisor can easily run into trouble. The franchisor may feel that their product was losing its name because of the tardy and incompetent service of the franchisee. The franchisee, on the other hand, may think that the cost was too high or that the franchise was making unreasonable demands on them.

There are decisions to be made at every step with muti-tasking all day long, juggling jobs from admin to manager. Women having the natural ability to multi-task, we all know that, may find it not too tough. Interestingly, they have all the other advantages of being successful in franchise business- sharp listening ability, flexibility and attention to details.

The award-I am still in the planning stages-No I am not a bureaucrat.

Here is my Award Winning Picture. Hurray!!

The initial financial position of the person or group starting the business will have a bearing on the outcome. Businesses started on a shoestring have a higher incidence of failure because the owner cannot stay in business long enough to establish a strong customer base. Even buying an established business with a customer base can be difficult because many small businesses make their owner a good living, but do not have the cash flow to make a business payment and support the new owner.

If you plan to start a business, look for a way to get it going slowly. A business that can be started in your basement or garage may be a good choice. Many options are available in this type of small business venture.

Small scale manufacturing can be a good place to begin. If you like to work with your hands, wood working can start generating revenue as a byproduct of your hobby. This can be craft items or furniture. Even cabinet building can be started this way if you have the right equipment. As the hobby begins to take more and more of your time, it should also be generating more cash. The transition from part-time to full-time can be seamless.

Mail order, drop ship, and small scale retail can also be started on a part-time basis. Even companies like Avon and Quixtar offer options here to become business owners with modest initial costs. The products can be sold via a catalog, internet, or as a retail effort. This type of business can spread by word-of-mouth, but is best spread by a more aggressive business plan that involves soliciting new buyers and business from a widening circle of contacts. You have to be willing to sell it.

If you are internet and computer savvy, different types of business can be started. Selling and building websites can be a profitable business if you have a few hours a day to devote to the programming and maintenance required. These can be marketed online and with newspaper and other types of low-cost advertising.

Computer repair can be a relatively cheap business to get into. Because many computers do not actually need physical repairs, this can become lucrative just by fixing other peoples' computer mistakes. Computer and software sales can be incorporated into this mix.

For outdoors enthusiasts, landscaping, pool maintenance, and handyman work abounds if you can start slowly. Unlike the previous small business ideas, this one will require a quicker need for staff if it grows. However, as staff is added revenues will grow exponentially.

For full-time businesses, restaurant franchises make great small businesses in most communities . The downside is that you will have to invest many hours in this business for many weeks until you can open new franchises and find great managers. Auto repair shops and auto parts sales can become great revenue producers with modest effort.

Two choices have to be made. The first is how much risk you are willing to take. For full-time business opportunities, the risk is higher, but the payday can be bigger quicker. By starting part-time, the risk may be low, but so are the income opportunities unless you become aggressive in promoting and working the business.

Below is what you might expect to find in a franchise operations manual:

Introduction: This section will include introductory remarks such as a message from the founder, an explanation of what the manual entails and its purpose and a provision of what is expected between the franchiser and franchisee.

Overview of the Franchise Program: All franchise manuals include a detailed description of the franchise system, explaining how it is set up and how the various components function. The detailed responsibilities of both the franchiser and franchisee may also be discussed.

Operating Guidelines and Instructions: This area of the operations manual will be broken down into many subsections addressing issues such as personnel, customer service, product and/or service delivery, pricing and purchasing policies, inventory control, accounting principals, insurance requirements and payment of franchise fees, among others. As a franchisee, you will constantly be referring to this section of the manual.

Directory of Contacts: Most manuals include a comprehensive directory of names, addresses and telephone numbers for franchise personnel, suppliers, associations and other franchisees. You will be expected to use the contacts that the franchiser provides, unless specified otherwise within the franchise agreement.

In addition to the above, the manual should also document all quality standards that are required and how the franchisee is expected to maintain those standards; the day-to-day support that the franchiser will provide (i.e. setting up the business, marketing, business development, etc.); the benchmarks that will be used to measure quality (i.e. mystery shoppers, unannounced inspections of units, audits, etc.); and how the manual will be updated when new systems and procedures are introduced. The operations manual of a well-established franchiser is likely to be substantial - possibly exceeding five hundred pages or more.

In order to fulfill your obligations under the terms and conditions set forth in the franchise agreement, you need to operate your franchise according to the procedures outlined in the operating manual. The bright side is that the operations manual will boost your productivity and profitability because the system has been proven. The downside is that you can't get too creative. Don't fool around with the franchiser's procedures or policies. By signing the franchise agreement, you now have certain contractual obligations to comply with. The franchiser will expect you to live up to your end of the bargain.

Be it North America or Asia, Europe or Africa, franchising is a hot commodity. In the United States, there are an estimated 760,000 franchised businesses, employing nearly 9.8 million people and generating $1.5 trillion in annual economic output. Franchising is also growing at a rapid rate across Europe, with more than 170,000 franchised units, over 1.0 million employees and yielding a turnover of $100 billion annually. The business of franchising equates to 7.9% of total sales in China and produces 12% of Australia's GDP. Used in more than 70 countries, it is undeniably the most popular and fastest growing business model in the world.

Examples of some older, well-established franchises include 7-Eleven, Hair Cuttery, Jackson Hewitt Tax Service, Lawn Doctor, Maaco, Pizza Hut and The Athlete's Foot. Some of the newer franchises today include Geeks on Call, Ladies Workout Express and Zips (formerly Dry Clean Depot). These are all franchise opportunities, meaning that if you so desire, you may own and operate one of these businesses.

So what exactly is this franchise form of business activity with such a long history and seemingly bright future? A franchise - simply put - is a legal right or license granted to an individual or group (franchisee) to market a company's (franchisor) goods or services in a certain territory. In essence, a franchise is a way to start a business. The catch, or possibly hook would be better word, is that you don't have to conjure up the idea or develop any systems. The flipside is that you will always have someone else to answer to and you will always be obligated to follow a certain set of strict operating guidelines. You will be bound by restrictive covenants and will be required to sign a detailed franchise agreement. So in many ways, you are more like an employee, rather than your own boss.

Still franchising is a popular way to get into business, since it essentially provides a tested formula that has worked for others. It can save a businessperson from making costly errors, shorten his or her learning curve and help him or her make a profit more quickly. However, no business opportunity comes without a price tag. In order to make money, you will need to spend some money. There are start-up costs, including the purchase of the franchise itself (called the upfront franchise fee), the costs of leasing space, remodeling if necessary, buying equipment and paying for inventory.

In addition to the initial franchise fee, you will also be expected to pay an ongoing royalty, which is usually calculated as a certain percentage of sales. It can also be a fixed fee or a payment on a sliding scale. Regardless, this fee covers the franchiser's ongoing time and support, as well as paying for access to product discounts and promotions. Since you are using someone else's business and marketing strategies to make money, you will also be expected to pay a percentage towards advertising, which is known as co-operative advertising funds.

Like any business concept, franchising has its pros and cons, its' up and downs and may or may not be the right business model for you. For many who have traveled the franchise route, it has been their opportunity of a lifetime. For others, it has simply given them a license, which they paid for, to work. Before anyone makes the decision to own and operate a franchise, there should be more than a fair amount of research conducted - not only on the business side of things, but on the personal side as well. You have to ask yourself, "Do I have what it takes to run a business?" Part of that answer, you will find in your research. The other part of that answer is innate.

The International Franchise Association reports that there are more than 75 various industries that use the franchising method of expansion, ranging from cleaning services to fast food restaurants and everything in between. But, believe it or not, not all businesses have the potential to be successfully franchised. A local success story does not guarantee a national phenomenon. Certain criteria must be met. Let's see if your business has what it takes.

Criteria for Franchising

A Proven Concept and Track Record for Success: Before handing over a large sum of money, investors look for a history of operating success. Franchisees are investors, so they will be scrutinizing every aspect of your business. You will need to demonstrate that your concept and methodologies are proven from both a financial and an operational perspective. If you are still fine tuning your systems or if your profit margin hasn't shown a steady increase, you are not in a position to consider franchising. You will not be taken seriously and will be viewed as a risk, not an opportunity.

Long-Term Market Potential

The product or service that you are offering must address a specific market need and have long-term market potential. Would-be franchisees will be looking for opportunities that take advantage of emerging trends. They will shy away from those that follow fads or those that are based on a whim. You must provide sufficient market research to back up your claims of market size and demand. Demonstrate to potential buyers that the market is increasing or that you are operating in an evergreen industry - one with a never ending supply of customers, because there will always be a need for your product or service.

A Positive Reputation and Brand Identity

Okay. If you were considering franchise opportunities, would you be more apt to buy a McDonald's franchise or a McHarry's franchise? The answer to that question is obvious. You recognize the brand name McDonald's therefore, you believe it would be a more profitable choice because its identity has been established. It's a no-brainer. Franchisees will be looking for franchise concepts that have the ability to generate sales because its reputation and brand are well-known. If your identity has not been established, all is not lost. Make sure you are taking the appropriate measures to protect your identity (i.e. trademarks and service marks) and that your concept has distinguishing features to give it distinctiveness in the marketplace.

A “Portable” Business Model

It is important that your franchise concept be portable and require no prior experience on the part of a franchisee. You must be able show new franchisees how to easily set up and operate the business using the systems that you have in place. If there are certain aspects of your business that are not portable, such as requiring a special degree, artistic ability or talent, your prospects will be limited.

Operating Experience and a Skilled Management Team

It is absolutely necessary that you have solid experience starting up and operating the business that your franchisees will be buying into. Operating experience demonstrates that your concept is viable. If you have a larger management team, they should also possess franchise related experience. Your franchisees will need initial and ongoing support. They will look to you and your management team to provide this support. Your team will also need to periodically inspect each franchised unit to ensure that all franchisees are following operating guidelines and procedures.

A Knack for Opening New Channels and Closing a Sale

You have to be able to sell - sell yourself and sell your concept to others. Consequently, you will a detailed plan that outlines how you plan to sell your franchise to would-be entrepreneurs. The plan should highlight the marketing and advertising techniques that you intend to use. Keep in mind your budget and target audience.

Franchising is about creating a systematic way of doing business that results in a unified network of individuals working to towards the same goal: maximum profitability. In summary, if you are considering franchising your concept, make sure that you have the following criteria in place:

• A successful business and operating history
• A proven system that generates a profit
• Market research findings that verify a large market to support ongoing efforts
• A favorable reputation in the marketplace
• An easy to operate, transferable business model
• Operating experience to prove your credibility
• An experienced management team that can meet the needs of franchisees
• Ability to sell to others effortlessly

Even if you have met all the criteria, be prepared to invest both time and money to develop your franchise system. Many people have met success taking the franchise route. If your business is truly “franchisable” and you're willing to work hard, you too might build great fortune with franchising. Have fun and good luck!

Learn the language

It is important before you take your franchise internationally to investigate the language. Make sure you are proficient in the language to ensure that you can communicate effectively with staff members, advertising and marketing agencies and customers

Know the culture

By learning the culture, you will gain insight into the needs and expectations of your new constituency. A Star bucks franchise, for example, has proven to be ill received in Paris, where corner cafes and bistros have held the city since coffee was bought and sold. In order to properly develop and market your franchise, you will need to understand the culture of your country intimately. It's recommended that you spend a few months in the country doing research before making the investment.

Know the city

Many International small business owners develop their business in a part of the city that does not serve the business's needs as well as another part might. It's important to know the city in which you wish to place your franchise before you invest your time and money in construction and marketing. For example, a sandwich shop will do fine in a city suburb, but it will do excellently in a city center during the mid-day lunch rush.

Research your market

Researching your market is similar to getting to know the culture. Researching your market, however, involves investigating numbers and holding focus groups. You can either hire a company to conduct focus groups for you or you can hold informal focus groups on your own. Develop a list of questions, such as, “Would you use this business or product? How often? Why?” By researching your market, you will develop a sense of what your new community needs, seeks and expects. You can then shape your business to meet those demands.

Check with the Franchiser for Rules

Before you head international, make sure you contact your franchiser for their rules. Many franchisers have stipulations about advertising methods, communications and building structures. Make sure you have your plans and building drafts approved prior to settling internationally. It would be a huge set back to obtain a franchise, but not be able to use a building you've purchased because the franchiser has different requirements.

Market your Franchise

Marketing your franchise will largely be up to you. Many franchisers offer marketing packets and tips. You can even purchase sign age for most major franchisers. Yet actually doing the gritty work will be up to you. Send postcards to local residents in the area around your franchise. Consider investing in radio/TV, newspaper and mass transit advertisements. Host an open house or Grand Opening Party to announce your new business.

Most of all - be creative. The reason your franchise will succeed or fail relies largely on your ability to be more creative with your product and marketing than your competitor. Get out there and good luck!

Subway

Subway has over 23,000 franchises around the world and commands an 8% royalty fee from sales. The total investment into the franchise ranges between $70,000 and $220,000 and requires a net worth of $30,000 to $90,000. Subway has been so successful with its franchises partly due to the extensive training and support that it offer franchise owners. Owners are invited to a two week training session at the Subway quarters in over seven countries. Additionally, Subway provides ongoing support in the way of newsletters, meetings, and marketing help.

Curves

Curves has nearly 9,000 franchises around the world, with the majority in the United States. The company requires only a 5% royalty fee and has a modest investment into the company of only $36,400 to $42,900. The company requires a net worth of $75,000 to operate. Curves succeeds at offering one week-long training course at the national headquarters in addition to offering a four-day training course at the franchisee location. Franchise owners are also invited to regional meetings that are full-day, conventions and local events. Curves offers generous marketing help and on-going support to encourage franchise owners to spread the word about the innovative women-only gym.

Quiznos Sub

Quiznos Sub operates about 2,500 Italian sandwich stores around the world. The start-up investment is sizeable - ranging from $208,400 - $243,800, plus a 7% royalty fee. Net worth also must be high - at $125,000 with a $60,0000 cash liquidity requirement. Perhaps because of the high expenses, only about 7% of franchise owners own two or more stores. Quiznos does, however, offer substantial training, including one week at the Quiznos headquarters and a full three weeks at the franchise locations. Quiznos also offers a competitive support package for operations and marketing.

Jackson Hewitt Tax Service

Jackson Hewitt Tax Service has just over 4,000 locations spread out across the US. The tax firm specializes in federal and state taxes and sees clients year-round. The franchise requires a mid-line investment of $51,700-$85,400 and commands a rather large royalty fee of 15%. Net worth requirements must fall between $100,000 and $200,000 and most franchise owners own two or more Jackson Hewitt stores. Training for franchise owners is at a minimum. Jackson Hewitt offers five days at the headquarters and two days at a regional location. The company also offers support such as a newsletter, meeting invitations, Internet and operational materials. Additionally, Jackson Hewitt assists with marketing support in the way of national media and co-op advertising.

The UPS Store

The UPS store franchises nearly 6,000 franchises around the world, including over 4,200 in the US. The total investment is high, ranging from $138,700 - $245,500 with a low royalty fee of only 5%. Net worth also must be high at $150,000 and owners are required to have business and computer experience. Training and support for the UPS franchisee is substantial - with two weeks at the headquarters and two weeks at the franchisee's location. Ongoing support is also available.

So you've made the investment into a new franchise and now need some full-proof tricks for marketing it. Owning a franchise is similar to owning a start-up small business in that you have to build your business from the ground up. Luckily, unlike owning a start-up small business, many franchisers offer marketing packets, complete with sign age, tips and useful information for getting the word out. After all, your franchiser wants you to succeed. Below are a few traditional and non-traditional methods for marketing your new franchise.

Post cards

One helpful and cost-effective way to marketing your new franchise is investing in postcards. Find a graphic designer and a writer if you are not design/language savvy. Your new post card should be eye-catching, announcing the launch of your franchise. Include a coupon for the first visit to your business and, of course, contact information so that your post card recipients will know how to get in touch with you.

Send your post card to residents living within five miles of your new franchise (you can obtain a list of residents from the local city hall.) If you don't have the budget to purchase stamps, consider hiring a student to distribute the cards door-to-door in the surrounding neighborhoods. Your post card campaign should cost you no more than $600, including design, writing and printing (add an additional fee for mailing.)

E-Newsletter List

Many business now how email newsletter lists. Newsletters lists are a great way to reach an audience that is already interested in your company. Once you develop your franchise Web site, make sure you set aside space for your newsletter and for people to register for it. It is recommended that you send out a newsletter at least once a month. Don't over do it though - people don't enjoy receiving E-mail spam. Include coupons and valuable announcements in your newsletter to ensure that people read it each time you send it out.

Grand Opening Party

Host a Grand Opening party for your franchise. Invite the neighbors and the local media. Make sure to send a press release about the grand opening party to newspapers, TV stations and radio stations so that they include it in local calendars. The more media exposure you get means the more chances your franchise will be seen by interested parties. Furthermore, hosting a Grand Opening party shows that you are community-oriented and interested in getting to know your neighbors.

Radio/Newspaper Contest

Host a contest and announce it in the local newspaper. If you're opening a doughnut shop franchise, announce that you're hosting an all-you-can eat doughnut eating contest and the winner will receive a year's worth of free doughnuts. Be sure to take out an ad in the local media. Your contest will help to show that you sponsor fun events and are interested in giving back to your supporters.

Traditional Advertising

Most franchise owners take out a radio/TV or newspaper ad at some point. Unlike grassroots marketing, traditional advertising tends to be more expensive, but the trade-off is that you reach a greater audience. Shop around the local papers and media outlets for the package that's most cost effective for you and your market.