Millions of people are attempting to build either network marketing businesses, direct marketing businesses OR multi-level-marketing companies both on and offline.
Let’s first distinguish between each of these business models so you can consider what might be the very best way for YOU to generate an income from home since they each have some unique elements.
1. Direct Marketing: Direct marketing can be your own product but is more likely someone else’s product and in a pure sense this is simply affiliate marketing.
2. Network Marketing: In this case, the product you are marketing, is a combined effort, a team effort, supporting one another so that the one who makes the sale (who is being trained and guided by his up line) is earning a great commission on each sale and really does not mind receiving a small percentage less for the one who brought her into the business. This is very much like what I used in the offline world for many years. I personally owned and operated a sales company where each commission sales person earned very good money for his / her personal sales and I would receive a fairly small over ride for training and providing resources for the sales force.
Each sales person earns a sizeable commission for each sale and the owner of the sales agency would take a small piece of the overall commission paid by the primary companies being represented (for training and/or overhead expenses) that the other sales people did not need to incur for themselves. In Network Marketing the focus is the product and “growing a team” is secondary.
3. Multi-Level-Marketing: Will MLM survive long-term in light of the perceived advantages of network marketing compensation plans. The jury is still out.
The difference between these two models is this: Multi level marketing companies are set-up to pay commissions to several levels of “uplines” and leave a smaller portion for the downline person making the sale. Network marketing companies, though, pay the one who brings the sale in the largest part and then a small part is for the trainer, motivator, upline. So, the question is: how can someone really be effective when he / she has several hundred people in his downline in an MLM structure. If he is a really good trainer of trainers, then he can.
But, most people are not all that great at building a down line, so often the better structure is to get paid today for what you do and then build your team as you can for the residuals. It really depends most on your own style, abilities, personality and goals as to which is better for you. The answer is not very.
But when you have only a few dozen people you should be able bring great value to your team by helping them to promote the product.
But the MLM business model requires that one not only sell the product, but more importantly that she is bringing others into the business. And a large part of the commission goes to the layers of up lines who may or may not be directly involved in helping his down line build his business. So, if I was to make a one sentence statement about the differences I’d say the MLM model requires you to build a team of people and consider the product secondary. And, of course, many folks just are not that good at building a team of people.
Think through what is best for you based on your own desires, goals, and abilities. The choose the business model that is best for you. Once you have a fit then go for it wholeheartedly until you generate the income from home that serves your needs.
It really doesn’t matter if you are part of an MLM team or a network marketing team, in terms of your income potential – it can be substantial either way. But you must choose what is best for you in particular.
Jack Funderburk provides resources for those starting internet businesses. Jack’s websites teach a proven system for MLM success based on: Learning the concepts of Marketing / Advertising; Using a system that covers the cost of your advertising; And your primary online business will automatically grow.” To Learn More Go to: http://BuildingBusinessesOnline.com
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