The Entrepreneurial Revolution: A Contrast between Franchis

A detailed Summary of The Entrepreneurial Revolution: A Contrast between Franchis

A Contrast between Franchises and Network Marketing Opportunities

An "entrepreneurial revolution" has been sweeping America throughout the past decade as millions of people are remaking themselves as entrepreneurs and salespeople. The entrepreneurial revolution can largely be attributed to corporate downsizing, which has resulted in mass numbers of individuals leaving the false security of big companies to go into business for themselves. Franchises and home-based network marketing businesses have emerged as two of the fastest growing sectors in today's business economy. Both opportunities have captured the interest and spending dollars of entrepreneurs and consumers throughout the world. Although franchising and network marketing have many distinctions, which allow each business opportunity to stand on its own, they both also share some similarities.

Franchises have been the fastest growing segment of the retail industry for the last fifteen years. In 1997, sales through franchises exceeded $800 billion in the United States, representing about half of all retail businesses. Franchising is growing primarily for two reasons. First, many franchisees

Franchising, put simply, is a method of indirect distribution involving a contractual agreement between two parties. This agreement gives the franchisee the legal right to market a franchiser's products or services within a particular geographic area or location. Usually, the franchiser sells this right for a sizeable lump-sum payment, referred to as a franchise fee, and receives royalties based on a percentage of the franchisee's gross income. Startup costs for purchasing a franchise can be quite enormous, ranging from a couple hundred thousand dollars to well over a million dollars. Startup costs associated with a new Kentucky Fried Chicken franchise on average run between $950,000 to $1.4 million.

Network marketing opportunities normally allow independent representatives to earn money in two ways, retailing and sponsoring. Retailing is the method in which products or services are moved from the company or manufacturer to the end consumer. Similar to franchises, independent representatives buy products from their companies at wholesale prices, sell them at retail prices, and keep the difference. Or, they take orders and receive commissions. Sponsoring is a term used in network marketing, which basically means to share the marketing opportunity with others. Independent representatives can build their own sales organizations and receive bonuses or override commissions on the sales of the distributors i

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Fried Chicken, Marketing Opportunities, network marketing, entrepreneurial revolution, business opportunity, startup costs, network marketing opportunities, support services, independent representatives, independent distributors, marketing opportunities, broad range support, product research development, bonuses override commissions, own sales, product research, involved network marketing,

Approximate Word count = 960
Approximate Pages = 4 (250 words per page double spaced)

Category: English