McDonalds vs. Network Marketing

The Business of Business

 

When you think of Network Marketing what comes to YOUR mind?  Do you think about a Big Mac?  Maybe you should.  In this article I will show you how Network Marketing is not only a legitimate business model but its underlying principle of having independent agents operate proven systems is no different than what has made McDonald’s Corporation one of the most WORLD renowned corporations on the planet.

The advantage of Network Marketing over being a McDonald’s franchisee is that you don’t need hundreds of thousands or even thousands of dollars to start a business.  Did you know that if you wanted to open up your own McDonald’s franchise you will have to have a minimum of $500,000 to even be considered as a franchisee?  In addition, the $500,000 must come from non-borrowed personal resources.  Sure, owning a McDonald’s will likely yield you a huge return on your investment but how many people do you know have an extra $500,000? Do you?

The advantage of Network Marketing is that it allows people, those without thousands of dollars in extra income, the opportunity to invest in a business and yield significant returns on their investment.  Did you know that you can enter a Network Marketing business with SOMETIMES less than $100?  With minimal monetary investment, Network Marketing can help every day people like you and I get on the road to financial freedom.

Before I continue, let me address the critics of Network Marketing.  Network Marketing has unfairly received a bad reputation.  Yes, there are some dishonest Network Marketing businesses out there just as there are dishonest corporations. 

Network Marketing is certainly not immune to being used as a vehicle by those who wish to trick people out of their hard earned cash.  However, this doesn’t mean that the principles of Network Marketing are dishonest.    

Before you invest your time and hard earned money into any business, Network Marketing or otherwise, it is incumbent upon you to do your due diligence and research in-depth any Network Marketing business before you decide to join. 

As I mentioned earlier, the principles of Network Marketing are being used today by many successful corporations.  Let’s look at the common bond between Network Marketing and McDonald’s.

More than 75% of McDonald’s 31,000 worldwide restaurants are owned and operated by independent men and women.  Given the diversity of owners and locations, isn’t it amazing that a Big Mac in Florida can taste the same as a Big Mac in Japan?  How is this possible? 

When Ray Kroc decided to expand McDonald’s to multiple locations he developed complex systems to ensure consistency in his products’ ability to meet customer needs no matter the location. 

53 years later McDonald’s still operates on this principle.  This too is the key to successful Network Marketing business models, having proven TURNKEY systems that can be duplicated by any independent agent no matter the agent’s location.  

Why is this so critical?  By having a system already established you do not have to reinvent the wheel.  Think about all of the time and effort that it takes to start a business from scratch.  Because of this many businesses fail before they even get started. 

However, with Network Marketing, the “heavy lifting” (i.e. idea conception to the pain of going through the “what worked/ what didn’t work” process) has already been done.  As a result, you have the ability of joining a business after it has gone through the litmus tests required to establish that the system works.  This is the same advantage that McDonald’s gives to its franchisees but, again at a minimum of $500,000.     
  
Another advantage is that allows for anyone to join into a business without a degree or formal prior training.  Ray Kroc understood that standard procedures and processes meant that virtually anyone could successfully own and operate a McDonald’s franchise.  Perhaps you have noticed that most of the employees running McDonald’s from crew manager to manager are teenagers and young adults. 

Five years after opening his first McDonald’s restaurant, Ray Kroc and his senior chairman Fred Turner opened Hamburger University.  The purpose was to train McDonald’s restaurant management personnel and owner/operators in the standards, procedures, and processes so that there was consistency in each location. 

McDonald’s had already proven that its franchises could be very successful if franchisees were to duplicate the systems and processes already in place.  By training new management personnel and owner/operators in duplicating the system McDonald’s was in essence duplicating success in locations worldwide. 

Just as Hamburger University was set-up to invest in the success of franchisees, successful Network Marketing programs invest in their agents in a similar manner by allowing them access to the tools in order to help them be successful.

New independent agents often have mentors, who are senior agents who have experience successfully operating the “system”.  This mentorship is important to assist agents with becoming more familiar with their new business venture.    

By now you have probably noticed that I haven’t mentioned actual McDonald’s products.  Although Ray Kroc focused on high quality products, he didn’t make his money by having the best tasting burgers in the world.  And even today, McDonald’s commercials never claim to have the best-tasting hamburgers in the world.  Yet they are the number one restaurant retailer of hamburgers in the world. 

Let’s take a test.  Thinking about all of the places in your local area that sells hamburgers, “mom and pop” restaurants included, do you honestly believe McDonald’s has the best tasting hamburger?  For the majority of people, the answer would be no.  So, why do we eat so many Big Macs?  The answer is location, location, location.  McDonald’s meet consumer needs not by having the best tasting burgers in town but by offering food where hungry people tend to accumulate.  As a result, McDonald’s is typically located off of busy highways, interstates, and on or close to main city streets.

Similarly, to succeed with Network Marketing you do not have to have the best products in town.  This does not mean that you shouldn’t strive to offer consumers high-quality products, but it does mean that you should be aware that there is always going to be a competitive product out there.  Therefore we have yet another reason system-based Network Marketing is so critical; because a system provides you with the guidance and support needed to be successful even if you don’t have the best product in town.

McDonald’s Corporation would not be nearly as successful as it is today if it were not for the complex TURNKEY systems and education that it has developed and continue to develop to assist franchisees with being successful.  Despite not having the best products in town, McDonald’s is one of the largest most successful corporations in the world. 

The foundation of Network Marketing is rooted in the same underlying principle used to make McDonald’s one of the most successful corporations in history:  Allowing people the opportunity of managing their own business where they can make significant returns on their investment by developing proven systems for them to follow and mentoring them on how to work the system to be successful.

So, if you desire to be in business for yourself, but not by yourself, and do not have thousands of dollars for start-up costs nor the time or business savvy to start a business from scratch, consider the business of Network Marketing.  For many this is the missing link to total financial freedom.

 

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