Pros
- It reduces risk of business failure – less than 7% of Network Partners fail within the first 3 years, as opposed to over 90% of new business start-ups.
- Enables a small business to compete with a big business.
- Products, services and system tried and tested.
- Very steep learning curve in very short time increasing chances of success – mostly no previous experience in a particular business is necessary for a Network Partners to operate it*however a Diamond Network Partnership does require some product knowledge so this isn’t always true.
- Centralised Marketing – so Network Partners can focus on money making aspects – sales and operations
- Exclusive territorial rights – Gives them a monopoly over the area allocated to them preserving their business in the future.
- Back up – Including managerial and administrative services, product information and marketing support.
Cons
- Lack of independence – If you are a maverick this ain’t for you, you have to be able to follow a system.
- Inflexibility – You wouldn’t go into McDonald’s and expect a different burger. That’s the point of a Network Partnership, everything is supposed to be standardised because it works!
- Risk associated with the Network Partners performance – Network Partners monitoring, visits are welcome initially, but some Network Partnerships think it’s intrusive as time passes. At Diamond our guys and gals love a visit – we are on big happy family so visits and get together are requested by our Network Partners!
- Service charges – Some Network Partnerships service fees are onerous. At diamond our focus is on building profitable depots so service fees are 50% of other competitors fees. Plus we add so much value with centralised administration and credit control it’s really worth your while.
- Reputation – Each Network Partner affects the reputation of the whole system depending on their performance and ability. At diamond we know, We are only as strong as our weakest team member so we have to be very careful with who we select.
- Risk associated with Network Partners performance – Not all Network Partners businesses are soundly based or well run. Get references and check accounts. There are different stages in a Network Partners life – all have different risks/benefits. The Established Network Partnership – least risky, but cost high, and potentially inflexible. The New Network Partnership – lower initial investment, more flexible, learning curve for all on board. Watch out for the Unethical or Incompetent Network Partnership – look for companies with a great reputation so you know they will do as they say and have the very best intentions at heart.
