Business Models

In this article I will consider a relatively "new" business models, their advantages and disadvantages, as well as their development trends in Russia. Such systems are franchising, already firmly entrenched in our country, mlm principle of the company, which, unfortunately, has been underestimated in Russia, but, nevertheless, is gaining momentum and a completely new business model based on the confluence of the above systems. Franchising is written rather many materials. The network could be found as a general, so a detailed description of the principles of franchising, as well as specific descriptions of the scheme of work for him. The essence remains unchanged. How come this system in Russia in 1993, so and remains unchanged.

The same is true of network marketing, namely the principles of building networks that work mlm company. The differences between them lie only in the form of marketing plans, how to work and the names of its distributors. If we take the largest network marketing companies in Russia, such as Avon, Oriflame, and others – fundamental differences in the scheme of work, you will not find. Yes, there are general differences, but the principle remains unchanged. Now The situation began to change, begin to appear the company managed to combine these two totally dissimilar models of work in one. A pioneer in this was, again, the cosmetics company DeSheli. I will try to consider all Aspects of this association and identify both positive and negative sides. Based on materials provided to me by DeSheli, as well as materials on the franchise proposals from such companies as SubWey, MacDonald's, , and marketing plans for cosmetic companies Avon , Mary Kay , Oriflame and not only them, I will try to identify the strengths and weaknesses of franchising and network marketing separately.