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B2B Franchise vs B2C Franchise: What’s the Difference?

B2B franchise vs b2c franchise

When it comes to choosing a franchise business model, one of the most important decisions you can make is: B2B franchise or B2C franchise? Both can be part of a franchise, and both can offer residual income: so how do you know which model to choose? Never fear. We’re here to take out the guesswork.

 Business-to-Business (B2B) ModelBusiness-to-Consumer (B2C) Model
Decision-Making ProcessLonger: Your clients are making a bigger investment and longer commitment, so their decision-making process will be longer than for one service or transaction.Shorter: More in-the-moment and impulsive: usually as result of a short-term need
Number of StakeholdersYou’re dealing with many more players when selling to a business. Find your key players and spend time getting to know them and their needs (and how you can meet them)!Fewer: Usually just one or two people involved in making a decision to buy your product or service
Length of Business RelationshipLonger: Since it takes so much longer to cultivate a relationship and get the stakeholders on board, the company is likely to keep you as their supplier for the long haul.Shorter: Based on a one-time, seasonal, or short-term need
Lead PoolSmaller: There are fewer large companies than there are individual consumers.Larger: There are many, many more individual consumers than large companies.
Product KnowledgeMore in-depth, technical, and component-basedWhy it is different/better than the competitor’s

Both models of business can be very lucrative, fulfilling, and fun to work with. When deciding what type of franchise to buy, or how to best earn residual income, the difference lies with you.

  • What do you want your focus to be? An individual or a company?
  • What kind of sales do you enjoy more? Do you currently have technical knowledge, or a competitive edge based on your career or passions?
  • Do you want to cultivate short or long-term relationships?
  • Do you want the consistency of dealing with the same few clients over time, or the excitement of lots of clients throughout the year?

There’s no right or wrong answer when choosing a business model, as long as it aligns with your passions, skill set, and career goals. Both approaches can fit within a franchise model, and both have the potential for high residual income. (Some business models offer the opportunity for both of these types of sales, with more focus on one than the other.) Regardless of the decision you make, be sure that you choose a model that will make you excited to get up and work each day!