Dec 06
There are a number of different views on the topic of network marketing and multi-level marketing.Some work at it harder than a normal job and succeed extremely well. There are even top celebrity’s doing it and advocating it.
So, what is the difference between multi level marketing and network marketing?




Network marketing and multi-level marketing have been described as methods of direct selling. Directs elling and network marketing refer to the distribution system, while the term “multi-levelmarketing” describes the Reward Payment plan.


Non-salaried salespeople of multi-level marketing are referred to as distributors or associates, dealers,franchise owners, independent agents, etc.; They represent the company that produces the products or services they sell. They are awarded a commission based upon the volume of product sold through their own sales efforts as well as that of their down line organization.


Almost every sales organization in the world has a multi-level marketing structure where sales people get commission, and sales managers get overrides or bonuses, sales directors and VPs on top of that.


Its upside is that it has a low cost of entry, with the potential for excellent revenue, and there are those who achieve that.


NETWORK MARKETING Network Marketing is a method of distributing products and services…


Network Marketing is made up of Independent distributors who develop their organizations by either building an active customer base, who buy direct from a company, or by recruiting a down line of distributors, these people also build a customer base, thereby expanding the overall organization.Additionally, distributors can also earn a profit by retailing products they purchased from the company at wholesale prices.


This is preferred to having their own sales force and marketing to wholesale/retail outlets.In a `conventional’ business, a company will spend a fortune advertising its products or services to potential customers.
In network marketing, the company usually deals either directly with the consumer or via independent distributors – either way the independent distributor who referred the customer will receive commission whenever that customer buys.

This method reduces the overall costs and allows the company to pay commissions to its distributors. This often allows the company to produce better quality products or services at competitive prices leaving amargin with which to pay the distributors.


So what are the fundamental differences?

Network marketing is a great opportunity for people to have their first business, their first sales role,etc. Recognize it for what it is: it’s a business, and you are a business owner and if you have never owned a business before, if you’ve never done sales before, if you’ve never networked before, you need to learn about how to do so, not from the network marketing/ multi-level marketing experts, but from established experts in that field.


Network marketers who are serious about building a business should be reading and learning aboutbusiness fundamentals, the latest sales and marketing techniques, strategies for networking andbusiness development, etc.


The characteristics of multi-level marketing make it attractive to people who:


have not succeeded in their business or profession and have little money
have no experience owning or running a business
have no experience in sales
have no experience developing business relationships other than that ofemployer/employee/co-workerare not happy with their current income
have poor expectations of the amount of work involved compared to the revenue.


Multi-level marketing is suited to a person who can be dedicated to setting up key personnel beneathhim, who inturn can establish a similar network as a branch beneath themselves Etc.


With multi-level marketing it can be said the “early bird catches the worm” This is because the higheryou are on the tree (or to be in it from the start) means you have a much better chance of beingsuccessful providing you work at it.

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