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Network Marketing Companies are Different from MLM
By: Jack Funderburk

Is there any difference between MLM and Network Marketing? Does it matter? Which one has the potential to generate the best income for me? You really should answer these questions BEFORE choosing a company.

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: Here the product is combined with a network of people whom you are developing and teaching them how to market the same product. 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.

So these two business building concepts vary: In Network Marketing the lion's share of the commission goes to the person making the sale with a small piece going to one or maybe two levels up (the idea here is how effective can someone be training and helping people build their business when they have hundreds or thousands of "down line members". 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.

In MLM it is quite different as one person brings in hundreds of people who each only earn a small commission for any direct sales they make, and the rest of the commission is split among all the other "up line members". In MLM the focus is "growing a team" which many people do not do that well and the product is almost secondary.

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.

Article Source: http://www.excitingdestiny.com/articles

Jack Funderburk has owned small businesses for over 25 years. He now assists those starting online businesses. His entire business building concept for MLM / Networking is: Begin by Learning Marketing / Advertising; Then create a system that pays for your advertising; And then build your primary business." To Learn More Go to: BuildingBusinessesOnline.com

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