Should I Become a Franchise Owner or an Affiliate?

business team discussing about franchiseSo you’re looking to start a small business of your own, but don’t have the means to go all out just yet. You end up contemplating between investing in a franchise and joining an affiliate program. Both of the business opportunities already have a set plan that you just need to follow, but they are also different in many ways.

The Differences Between an Affiliate Program and a Franchise

When you buy a franchise, whether a transportation franchise, sub shop franchise or lawn care franchise, you get a license to operate a franchise business from a franchisor. As a franchisee, you need to follow all the instructions of your franchisor, including the setup, décor, equipment, products and services, operations, etc. to a tee. You also get support such as employee training, location hunting, or funding from your franchisor. In short, you’ll get an established, ready-made business.

When you join an affiliate program, you become an affiliate of a specific company and your main task is to sell products or services and in exchange, you get a commission on everything you sell. You could do this the traditional way, which is door-to-door (think traveling salespeople), or online. In an online affiliate program, you could post affiliate links for specific products on your website, blog, or social media and you get a commission when a user clicks on the link and buys the product.

Affiliate Program vs Franchise Opportunity

If you love the idea of working with a brand that’s already established and give you a business structure you could stick to, both routes are great options. But opening a franchise is more costly and complex than being an affiliate. On the other hand, a franchise could be more profitable than an affiliate program.

Likewise, being an affiliate is more of a side hustle and not a business, plus you have countless competitors all selling the same products. With all this in mind, before deciding on which route to go, do your due diligence and research your opportunities thoroughly.