MLM vs Network Marketing - Who win's MLM vs Network Marketing
MLM vs Network Marketing - Who win’s MLM vs Network Marketing
So who wins MLM vs Network Marketing, I would like to show you who wins out of MLM vs Network Marketing and why!
When people are shopping for a business opportunity they are often overwhelmed with the huge number of choices. As someone who has been there, I am often asked: what is the difference between MLM vs Network Marketing. There are significant differences which should be considered before making a decision.
An MLM vs Network Marketing COMPANY:
So MLM vs Network Marketing, as the name implies, refers to a multi-level compensation plan – generally 5 to 10 levels deep. Representatives are compensated largely on their ability to recruit others, train and retain them to duplicate their efforts.
Generally there is an opportunity fee of $200.00 to-$500.00 to join a company. Also you can expect to have to buy $50.00 to -$100.00 of the company’s product on a monthly auto ship plan. In addition you can expect to have to pay for advertising expenses, promotional materials, business cards, a monthly fee for a replicated website, a monthly fee for access to your Back Office, hotel meetings, Regional and National meetings. In short, you can expect to have ongoing monthly expenses of $150.00 to $200.00.
MLM vs Network marketing companies are known as “seller-based,” which means they give more income to the distributor when he or she makes a sale at retail. Direct sales companies usually market higher-ticket, one-time-sale, durable items such as air and water filters, cookware, art, home accessories, etc. With the direct sales business approach, the majority of the available profit designated for the salesperson’s commission goes to the person who makes the retail sale. That person usually earns a significantly higher percentage of the designated sale commission than does the sales management that may be supervising his or her work with MLM vs Network marketing
A NETWORK MARKETING vs MLM COMPANY:
Network marketing companies are essentially a horse of a different color. Because of the stigma associated with MLM vs Network Marketing (people often jump to the conclusion that they are illegal pyramid schemes), the term MLM vs Network Marketing was coined to be a gentler, softer term that would be more acceptable to skeptics. Essentially MLM and Network Marketing are one and the same.
There is far more information available about the pros and cons of MLM vs Network Marketing business opportunities. I am hopeful that this info gives you a basic understanding of the difference and is useful to you.
So who suits you in MLM vs Network Marketing
Many of us who make our living from this arena still debate what the difference between MLM vs Network Marketing is. Even so, the vast majority of experienced network marketers would define these terms this way.
Most experts would agree that network marketing is a part of the direct selling concept in MLM vs Network Marketing where products or services are offered on a one-on-one basis and sold directly by the salesperson to the consumer. However, the two approaches offer very different benefits to the salesperson.
If you want to build a long-term residual income, however, you should consider network marketing. Network marketing distributors still sell, but the sales process usually begins with their “warm” market of friends and relatives. Network marketing companies typically offer retail commissions that are much lower, since more of the available commissions are directed toward bonuses paid to various upline management people in the sponsor tree.
Having spent most of my working life in direct sales and network marketing, I have found it easier to attract people to a network marketing opportunity for a number of reasons. Residual income is one; here are some others:
- It usually costs less to get involved. Other than samples of the products and an at-cost distributor kit, there is usually no investment. Customer orders can be drop-shipped by the company, and customers can usually reorder company direct or on the company Web site with the designated bonuses going to the person that made the original sale. Consequently, this doesn’t require major inventory. And that means …
- More people can become involved, since the concept embraces the part-time salesperson along with the full-time career builder.
- There’s potential for exponential growth. Distributors can leverage their energy and efforts through a small number of people they train who manage to in turn train and manage their own people and so on. In this way, sales create bonuses for the sponsor and upline.
If you enjoy people, are a good communicator and a hard worker, either direct sales or network marketing can provide an accelerated income potential. It’s ultimately up to you to figure out which best fits your needs and goals. So who ever wins out of MLM vs Network Marketing YOU Decide..
To Your Abundance!
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