The term “Micro-Franchising” came into use to describe the concept of providing entrepreneurs a
turn-key, prepackaged, business system that could be implemented without large start-up cost. Neitherwould it have the requirement of specialized business education. Starting a home business based on the Micro Franchise concept differs from the typical “Direct Sales” opportunity in two important ways.
First, a Microfranchisee (the new business owner) is provided with standardized step-by-step training and support based on tested and proven systems. Success is not left to chance nor to the creative energies of the new businessperson. This includes all aspects of sales and lead generation.
The new business owner knows exactly what to do to market and build his/her business in a professional manner. While in the “Direct Sales” industry typical associates would make a list and try to sell family and friends but have little knowledge or expertise and few resources to effectively market outside the realm of people they know. This is the reason for the high failure rate experienced by people starting a home business .
The second way microfranchising differs is actually to its disadvantage. In “Direct Sales” or network marketing the leveraged income component allows the business owner to expand business by “franchising” the opportunity to others. Just as McDonald’s Corporation profits from revenue generated all over the world from independent franchise operators a network marketing professional can create “distribution channels” or “legs” and grow an organization from enrolling others. When sales volume is produced in the developing organization the network marketer can be eligible to earn bonuses on this expanding organization.
The best home based business opportunities combine the microfranchising concept (training-support-lead generation) with the direct sales or network marketing component (leveraged income). This provides the startup business person the best chance for success without having to depend solely on family or friends as they are starting a home business.