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A Look Into Direct Sales Vs Multi Level Marketing Programs
| Guest post by: Robert Hathhorn |
Article Overview: To be clear, multi level marketing does not, necessarily, mean that a scam is being pulled. However, the simple fact that this is a question that needs to be addressed so often only goes to show that MLM businesses aren't, always, on the up and up.
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A Look Into Direct Sales Vs Multi Level Marketing Programs
To be clear, multi level marketing does not, necessarily, mean that a scam is being pulled. However, the simple fact that this is a question that needs to be addressed so often only goes to show that MLM businesses aren't, always, on the up and up. Direct sales, on the other hand, are a no-gimmick, no-tricks business based on, well, the essential concept of business: Selling goods to customers. That said, both sides do have their benefits, so let's compare direct sales vs multi level marketing.
MLM Sees Profits in the Long Term
Because of the pyramid like structure of multilevel marketing, it could be months or years before your first profit. In fact, if you don't know how to milk it for all it's worth, you might never see any return on your investment whatsoever. It's not that all MLM programs are scams, but there are a lot of scams masquerading as legitimate MLM programs. With direct sales, you simply buy the product and sell it to the customer. This means direct profits and little risk of being conned out of your investment.
Direct Sales Means Direct Profit
Because the primary relationship of direct selling is a customer/seller relationship, you get paid directly by your customers. With an MLM setup, you don't sell to the customer, you sell to other marketers, and you're really just another cog in the wheel of the vast machine of the MLM company. It is, essentially, not really an opportunity to be a business owner but to be a middleman.
Direct Selling is Much Simpler
With MLM, you often find yourself in a position where you might have absolutely no idea what to do next. With direct sales, your next step is always obvious: Make some sales. You don't have to try and introduce an army of new marketers to make ends meet, you don't have to answer to anyone but your supplier and your customers, and there's no ambiguity. You just set up shop and make some sales, simple as that.
MLM is Riskier
A recent study showed that only ten percent of business owners of a certain MLM company in the United Kingdom were actually making any profits at all. Not all MLM systems are the same, but the fact remains that MLM is not as reliable as selling good, useful products directly to the customer. Yes, it's possible to make money with MLM businesses, and many of them are entirely trustworthy and completely on the up and up, but you need to do a lot of research to find the ones that will deal straight with you.
Direct Selling is Focused on SELLING
Once more, the only real relationship in direct selling is the customer/seller relationship. This is because direct sales is about selling, not working your way up a pyramid. It's simpler, it's easier, there's less risk, and in the end, you're much more of a real, true, bona fide business owner. This isn't to say that direct sales are necessarily more legitimate than MLM businesses, but there is much less risk involved, and you're put more in charge of your own financial future when working in the direct sales industry.
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About the Author: Robert Hathhorn RSS for Robert's articles - Visit Robert's website There are many lessons from my childhood which have served me well through my life, but none better than being willing to learn new things, embrace change, and roll up my sleeves for some good old fashioned hard work. Hi, my name is Robert Hathhorn. My first online 'opportunity' involved buying leads and placing classified ads, and I learned very quickly that this was a dead end street. The most important lesson from that experience was that the most successful people online know how to generate their own high quality leads. I could see that with the right education, it was possible to build a business on the Internet and the possibilities for growth were huge. So I went looking for a way to learn how to market professionally online. The focus was on improving skills and delivering quality and value. And my lifetime of experience in business told me that this was the only way I wanted to build an enterprise of my own online. It is a new frontier that is growing by the minute, but I know that to be successful online, you have to roll up your sleeves and learn the skills to attract the attention of prospective customers and business partners. If you also find yourself looking online for ways to build a business of your own, and take control of your finances and your life, take this lesson from me... Do your due diligence, ask all the hard questions and above all else, make sure you are entering in to an opportunity where you will be taught how to market on the Internet in a professional way. Online business is not so different to offline; it is all about the value and honesty you bring to your market. As a top leader in Internet Marketing and a kind compassionate person, Robert provides advice, training, and support to individuals looking to build a Home Based Business. He provides his clients with a proven Home Based Business model. He is an expert in Social Networking Web 2.0 Marketing on Twitter, Facebook, Linkedin, and Youtube. He is currently looking for serious entrepreneurs who want to start their own Home Based Business and want to be personally mentored to achieve success. He helps his clients with their Home Based Business and provides them with all the tools and training to be successful online. He can personally mentor those who want to join the top 3% of people who earn a massive income from an online Home Based Business. Click here to visit Robert's website   The Basics of starting a home business Video Marketing Making YouTubefriendly Teasers Working From Home Haven or House Arrest The 7 Tools of Attraction Marketing Learning To Create Your Own Legitimate Home Based Business |
Related Forum Posts
Why do people hate Network Marketing / MLM?
- I've been looking at a number of different opportunities and end up meeting a lot of Network Marketing / Multi-Level Marketing people.
Some of the offers look interesting but everyone I talk to about it says to avoid these guys like the plague - what's the deal? Why do people hate network marketers and MLM people so much?
Is it not legit?
Online Sales and Marketing vs Traditional
- Hi Evan,
I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing
Re: Online Sales and Marketing vs Traditional
- [quote="ltrahan":31w9r2iz]Hi Evan,
I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing[/quote:31w9r2iz]
I second the request...
Re: MLM Marketing, youtube, and buzzirk mobile.
- I have experience with MLM too. My initial reaction to the business was "snake-oil salesman" but once I got to understand the "overall business model" I am now an advocate to it.
MLM (Multi-Level Marketing) is also known as Network Marketing. I realized an MLM business is no different than any other business. One needs to focus on both words "Network" and "Marketing" and give both equal respect. Some people focus heavily on the Networking part but forget "Marketing".
I've started to use Building on a Budget and Magnetic Sponsoring concepts in my NM business and have found that people don't get involved so much because of the product but more because of what you bring to the table as far as marketing systems and support.
I have both products listed in my signature. you don't have to buy it as the link to the free videos itself provides you a good understanding of what is required to position yourself as my above paragraph.
If you do plan on purchasing it I can tell you that the measly $40 will open your eyes BUT your upline will not be too happy (atleast in the short term) beacuse the system is not duplicateable.
I wrote this post as a polar post to Bulmer's reply as I have exhausted the friends and family networking and realized i never really focused on marketing. My leads now are more qualified and open to hearing about my opportunity than the other way around.
my 2 cents if you plan on growing an MLM or Networking Marketing business.
Hello From Marietta GA!
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My name is Tim Naylor and I am in Direct Sales! I am glad I have found EC's sites and I hope to learn and share a lot!
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