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MLM / Network Marketing - Same or Different?

By Jack Funderburk

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Published: 28Aug2009
Word count: 466
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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: 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. In the offline world this was a Sales Agency.

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: Today MLM is still very popular but may be giving way to Network Marketing and ultimately may lose the battle completely. The jury is still out.

The difference between these two models is this: 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.

So, your job now is to think through what your business is (or for some, what business you want to pursue) determine how it is best marketed and then choose from the internet business models that prove to be the most effective for you and your business, product or service.

Any of these models provide the potential to generate an income from home as long as you find the right "fit" and do it right, that is, systematically and very focused on your intent and purpose.

Jack Funderburk has owned and operated small businesses for 30 years, now online He provides resources for those starting internet businesses. Jack teaches a simple formula: First, Learn Marketing / Advertising; Next build a system that pays for your advertising; Then build your primary online business." To Learn More Go to: http://BuildingBusinessesOnline.com

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