VisionSpring: Successful Scaling Of A MicroFranchise (Part 2)

By Guest Author Praneetha Manthravadi

[The first part of the article introduced VisionSpring, what it is, and how it works. Today’s post explains how microentrepreneurs make profits from the “Business in a Bag” system and how readers can be a part of VisionSpring’s mission.]

So, what kind of profits do these microentrepreneurs make? It depends on purchasing power in the country they are in. For example, in India, microentrepreneurs who sell through the direct channel typically make $1 per pair of glasses. There are successful entrepreneurs who sell 50-100 pairs a month. The harder they work and the more they sell through the vision campaign model, the higher their profits.

Profits may differ for entrepreneurs who sell through the franchise partner channel depending on the market they are in. VisionSpring works with the franchise partners to make sure they price the glasses appropriately so that the microentrepreneurs can make enough money and continue with the program.

Marketing and advertising is one area in which VisionSpring would like to make a greater investment. They currently  promote their products currently through posters, flyers and handouts. A small marketing stipend is also offered to the entrepreneurs in the direct channel. The microentrepreneurs use this fund to hire a drummer or a radio announcer. Franchise partners spend their own marketing dollars. VisionSpring provides them the template for advertising and suggests different marketing techniques.

Looking to get involved in VisionSpring? If you have a specific skill and are willing to come for a couple of months and work on a detailed project, you may be able to add lot of value. VisionSpring also sometimes takes business school students for long-term internships. The best way for people to get involved is by raising awareness of VisionSpring and the need for reading glasses and by donating money, for which VisionSpring has a great need. This is one of the highest impact donations that you can make. The cost of the glasses is only $4, but the economic impact is equivalent to $106. Thus, the impact to cost ratio is very high. Thanks to the franchise partner model, VisionSpring is able to start self-sustaining programs around the world and keep the organization and its budget very lean. Donors can choose to specify a country to which they want the funds to go. Donations will also help VisionSpring to invest in finding new partners.

The biggest challenge VisionSpring faces for future expansion is finding the right partners and getting them to buy into the model. BRAC made an ideal partner because they already train women to sell basic health products. But not all microfinance institutions with large networks are accustomed to doing other tasks,such as training entrepreneurs and doing microfranchising. This is where VisionSpring is focusing – proving to microfinance institutions that investing in VisionSpring franchise would not only provide additional revenue stream to the organizations and its borrowers, but also much needed-health service to local communities.

This segment is part 2 in the series : VisionSpring: Successful Scaling Of A MicroFranchise
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