Branding For Franchises and MLM Ventures

written by: Jessica Howard; article published: year 2008, month 03;

In: Root » Business » Branding and certification

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In today’s business world, when contemplating a Multi-level marketing (MLM) venture or franchise opportunity, it is important to sell yourself first. Franchise opportunities and MLM ventures create special circumstances for brand development. In brief, franchise arrangements are a way of doing business wherein a franchisor licenses his or her way of doing business to a franchisee in exchange for payment. Multi- level marketing businesses function by enrolling nonsalaried salespeople to sell products; these salespeople may in turn enroll new recruits and earn commissions from their sales. Multi-level marketing is similar to franchising, except that multiple levels of people receive royalties from one person's sales.

In the case of franchises and MLM ventures, the importance of branding may not be as obvious as for independent companies because the small business owner / franchisee often buys the rights to an already established brand. However, the small business owner is still responsible for enacting that brand identity throughout all business operations from management practices to customer service and cleanliness. Most franchisors provide extensive support in the form of advertising, training, literature and equipment. In fact, the franchisor may require the franchisee to adhere to certain regulations; for example, franchisees maintain audited books and are subjected to surprise spot checks. If the franchisee fails these tests, the franchisor may cancel the franchise rights because these failures compromise the franchisor's reputation or brand image.

While the franchisor or MLM venture may provide materials that support the brand image, only the small business owner / franchisee is uniquely positioned to sell that brand image to the surrounding community. The small business owner knows the community; therefore, he or she must chose a strategic location, size up the competition and capitalize on his or her good name to sell the product or service to the community. A reputable small business owner / franchisee can draw on his or her reputation in the community to attract customers and prospective employees. Therefore, in the case of a franchise or MLM venture, it is crucial to sell yourself first.

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