The Network Marketing Industry

The Network Marketing industry has many different names such as multi-level marketing, MLM,  home based business or even direct sales. You might have even heard of references to their pay plans such as the Australian 2-up, the Binary, the Breakaway or the Matrix pay plan. Each has it’s own unique organization, product and compensation plan.

What is Network Marketing?

When a product is created, there are different methods used to promote it, or market the product.

  1. Wholesale. Sell it to retailers.
  2. Retail. Sell it in your own stores.
  3. Network Marketing. Motivate others to sell it for you by giving them a percentage on their sales and allowing them to teach others to do the same for a percentage of their sales and so forth.

Network Marketing is a network of consumers, all working together to promote a similar product or service, for a profit. They work together as teams. For example, everyone you enroll, and who they enroll, and who they enroll and on down the line, would be considered a team. They all share a common lineage, you. A little rivalry can exist between different teams while still holding a willingness to work together. It’s friendly competition.

Multilevel Marketing vs. Direct Sales

Is there a difference between MLM and Direct Sales? An inexperienced outside would say no. But there is a difference. The MLM business model has many tiers, or levels, which income can be earned from. Some MLM companies have compensation plans that run fifty levels deep. For example, you are the beginning, and your first level is Amy Allred. You second level could be David Allred, who signed up under Amy, and on down to forty eight more levels deep. In an MLM, you must qualify to earn commissions at these deeper levels, but once you are qualified, you will earn at those levels for life.

Multilevel marketing companies are great for a few reasons:

  1. Residual Income Potential
  2. Low start up costs.

The Direct Sales model won’t have as many tiers or levels, if any at all. Direct Sales is known more for it’s 1-up or 2-up business models. Basically, when you enroll someone, you earn commission for that sale. They in turn, must pass up their first sale, or first two sales to you before they can earn commission and their sales. Once they do, they no longer have to pass up any more sales to you. This not only pays you on your direct sale, but pays you for training and mentoring your newly enrolled associates.

Direct Sales has a few benefits as well:

  1. Immediate higher income potential. Most direct sales companies have higher priced products.
  2. The compensation plan is much easier to understand. You make a sale, you get paid. That’s it.

There have been attempts to mix and mingle the MLM and direct sales compensation plans, but they seem to be more successful apart. Both network marketing types will have bonus pools for top performers as well.

Can you succeed in Network Marketing?

Absolutely you can! But what will it take?

  • Ambition
  • Creativity
  • Hard Work. Don’t fall for the “work two hours a day” spill.
  • Time Management.
  • Start up capital.
  • Willingness to learn new methods of mindset and marketing.
  • A phone, computer and the internet.

But really, when it comes down to it, to succeed in network marketing, you simply must treat it like a business. It’s not a regular job. Sometimes, it doesn’t shut of at 5 pm or begin at 8 am.  You must be willing to do what it takes to get what you want. That’s it. It’s your business and it will only fail or succeed because of you. But in network marketing, you’ll have a degree of support to help you get it all started.

Many, many millionaires started right here in Network Marketing and at the same time, there are many that won’t make a dime. So you see, it’s not meant for everyone. Only for those who are serious. If that’s you, please fill out the form below!