When it comes to chosing a suitable business model then I suggest that you consider this comparison ,extracted from an article published by the magazine -
MLM Australia
(or follow the link above to see the article in full)

MLM & Direct Sales Traditional Business Franchise
Start up costs from $60 No risk involved - Start up costs generally $5000 to $lMillion or more. High Risk -Potential for success is-less than 20% Start up costs generally $5000 to $lMillion or more. High Risk -Potential for success is less than 20%
Run by self or with partner – Employee & wage costs – Superannuation, leave loading, Workers compensation, workplace health and safety compliance, annual leave,long service leave, maternity leave Employee & wage costs Superannuation, Leave loading, Workers compensation, PAYG Tax, workplace health and safety compliance, annual leave, long service leave, maternity Leave
Can begin part-time until income out-earns your job income Cash flow issues -Capital reserves needed to get you through Cash flow issues -Capital reserves needed to get you through
Can work from home High overheads – Rental costs, mortgage, investment. Need to deal with traffic, alarm clocks High overheads – Rental costs, mortgage, investment. Need to deal with traffic, alarm clocks
Association and mentorship with positive team players No time for friends or family No time for friends or family
Travel opportunities to conventions No time to travel No time to travel
Tax benefits PAYG tax, GST, BAS PAYG tax, GST, BAS
Sophisticated Intenet-Based business management system usually supplied Possibility that no system exists at all and you may struggle to find your way. Expensive I.T. and technical costs to implement and maintain a system Good management system usually available at cost of $20k upwards, + expensive ongoing maintenance costs
Full ongoing training and support provided, usually free or for minimal cost. You are on your own Initial support provided
Hugh personal growth through regular use of self-development material. No time to focus on self. The focus is on the business. No time to focus on self. The focus is on the business.
Leverage – you receive pay from the company for all the sales your team members make, and so do the team. Trading time for money-buying a job. Trading time for money-buying a job.

Twitter Username:

Twitter Password:

This information is not stored and only one tweet will be sent

Powered by Viral Tweets
  • Share/Bookmark

Tags: , , ,