Which Kind of Business Should You Start: Direct Sales, Franchise, Network Marketing or Ground Up?

By - Darnyelle Jervey On Apr 23, 2015

Which Kind of Business Should You Start: Direct Sales, Franchise, Network Marketing or Ground Up?

The truth is, there are tons of businesses you can start if you’re feeling bit by the entrepreneurial bug. From franchises to networking marketing, the sky is the limit. And there’s no “right or wrong” answer. It depends on several things, and most importantly, it depends on you.

I have to be honest, this is a timeless debate and the decision to start any business really has to be determined by your ability to take consistent action. This is because regardless of the type of business you start, the activities you’ll need to master to grow it are exactly the same.

You’ll need to clearly determine which awareness-generating activities you’ll choose to get found by your clients, as well as which revenue-generating activities you’ll choose to get paid by your business.

Having had a direct sales business before starting my own “ground up” business, I can definitely share my two cents on Shonda’s question:

“Hi Darnyelle. Over the last year or so, I have really begun to think that I could be an entrepreneur. And I have started doing research to see if I can learn what would be the best way to go for me. I’ve thought about starting my own “ground up” business and also just joining a direct selling or network marketing business. I value your opinion and business building expertise, and I know that you’ve had a Mary Kay Cosmetics business that was successful and your company has grown to 7 figures.  So, what do you recommend? Starting your own or working a business model that works?”

Check out my response to Shonda’s question in this week’s episode of Incredible Factor TV:

https://www.youtube.com/watch?v=dOwtG1XphSk

It’s no secret that I started my entrepreneurial journey through Mary Kay Cosmetics and by following their business plan and doing the work, I met success – 5 career cars, two of which were the Pink Cadillac, Independent Executive Sales Director (that means I helped five other women start their own Mary Kay units.) And I enjoyed countless awards, prizes, diamonds, etc. during my tenure. But, it wasn’t enough for me – being paid a percentage of the sales my unit and I made and team members I recruited for the company. I came to realize that if I’m going to work that hard, it should be completely for me and my brand. So I sent my Pink Cadillac back and started on the journey I’m enjoying today.

But that’s my story. You may be the type of entrepreneur for whom being handed a business plan and model that you just need to action is ideal. And if that’s you, good for you. Like I said, there’s no wrong answer. You just need to get clear about the vision you have for your life and what vehicles you’d like to leverage to make it happen.

In case you’re unclear about the options available to you in starting a business, let me share a few definitions:

Direct Sales – If you choose a direct sales company with which to start your own business, you’ve decided that you want to sell a product directly to a consumer and earn a percentage of the sales you make. Most direct sales companies also offer you the option to build a team and earn recruiter commissions. In most cases, the amount you earn increases with the number of team members you add to your team.

Networking Marketing – also known as MLM – Multi-level marketing companies are similar to a direct sales company, but your primary focus is building a team. You’ll earn a small amount (typically) for the products or services you have available to customers, but you’ll earn a lot more when you commit to building a strong team with multiple levels.

Franchise – A franchise gives you access to a proven business model and brand for a specified amount of time to operate it as your own independent business. This is an alternative to opening your own “chain of stores.” And it’s a successful business model that many enjoy. Typically, you’ll pay a large fee up front, which gives you marketing assistance and brand recognition and consulting support in some capacity from the franchiser. And you’ll have the opportunity to renew your franchise based on your results.

And of course, starting your own “ground up” business will be designed by who you are, the problem you solve and who you solve that problem for.

There are pros and cons to each, so you’ll have to decide which will work best for you.

Now I want to hear from you, what’s your two cents?: What factored into the decision of how you chose to build the type of business that you are? How would you advise someone who’s looking to start a similar business?

©2015 by Darnyelle A. Jervey. All Rights Reserved. Darnyelle A. Jervey, MBA, The Incredible Factor Business Optimization Coach and Mentor, is the founder of Incredible One Enterprises®, Incredible Factor University® and the Leverage Your Incredible Factor System®, a proven step-by-step program so you experience financial and spiritual abundance in your life because of your business.

For more information and a FREE audio CD “7 Critical Mistakes Even Smart Entrepreneurs Must Avoid for Clients, Connection and Cash Flow!”,
go to www.IncredibleOneEnterprises.com.

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