NETWORK 21 SYSTEM VS FRANCHISE BUSINESS (Lecture: Ambec Driz, Diamond: May 15, 2010 BBS)

SIMILARITIES:

·        Education

·        Step by step Training

·        Has a more predictable outcome when steps are followed

·        A cooperative neophyte with no experience in the business can have huge success

 

DIFFERENCES:

 

Franchise Business

Network 21 System

·        Strategy  to expand is to create more stores.

·        Duplication is the means to expand the business globally

·        Royalty income in franchising is about 5% of gross sales

·        4% leadership bonus plus on-going passive income if built properly

·        Requires very large capital investments that often run to the millions of pesos

·        Very minimal Capital

·        Runs on large overhead expenses of rental, supplies & payroll

·        IBO has minimal over-head expenses. No rental, no employees

·        Runs on very limited and fixed profit margins

·        Commissions & Bonuses reaches the maximum of wealth if the business is built properly

·        Survival of the fittest- highly competitive

·        Provides opportunity, teamwork and sharing between IBO’s all over the world. A business of helping each other.

·        A new Branch or Franchise

·        An upline  developed a new CORE- new IBO that learned the success habits.