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Direct Sales Vs Multi Level Marketing: Where Are The Profits
| Guest post by: Robert Hathhorn |
Article Overview: When considering direct Sales vs multi Level Marketing or network marketing, it is important to understand how each marketing system works. There is some confusion and misunderstanding about both types of selling.
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Free Download - 4 Tips While Working From Home By Robert Hathhorn |
Direct Sales Vs Multi Level Marketing: Where Are The Profits
When considering direct Sales vs multi Level Marketing or network marketing, it is important to understand how each marketing system works. There is some confusion and misunderstanding about both types of selling. Both systems are legitimate marketing systems that have great potential for a high income. You must consider your personal strengths and weaknesses in order to decide which one would be a right for you. The only way to do that is to understand exactly how each marketing model operates.
With direct sales, the product or service is sold directly to a customer and the sales person earns a sales commission on their sales production. A sales person's compensation is straight forward. A sales person makes a sale and earns a commission. The commission is not shared by anyone else such as a sales manager. A sales manager's compensation is probably based on the sales production of the sales people they manage but their commission is an override commission that does not come out of the sales person's commission.
Direct sales promotes its business using traditional advertising in print and electronic media. Your customer based is not dependent on your network of family, friends and co-workers. Sometimes the sales person is assigned a sales territory and can only make sales within this territory. The types of products sold via direct sales tend to be durable high ticket items like art work, gems, or antiques. They are not the type of products that a customer will consume and then reorder. Therefore, the sales person in direct sales is constantly prospecting for new customers.
Network marketing has a completely different structure. When you are recruited into a network marketing organization you are a part of your sponsor's organization. You sponsor will receive a commission based on what you purchase and what your recruits purchase. Recruiting sales associates has equal emphasis as making actual sales of products. You do not use newspaper, television or radio advertising to promote your network marketing organization. You will market via word of mouth, holding house parties and by talking to your friends, family, co-worker and people at church, your gym etc.
The products in network sales tend to be products that people will consume on a day to day basis. Common types of products that you will see sold via network marketing organizations are soaps and personal care products, household cleaners, and vitamins and food supplements. These types of products are consumed and then need to be reordered. They encourage repeat regular sales which can generate a consistent predictable income. You will receive a commission from the sales everyone down the chain of your organization makes. This is known as residual income.
Network marketing, unlike almost all other businesses, does not require a capital investment. The only cost is a very inexpensive distributors kit. Customers have products delivered via drop-shipping by the company. Reordering is done on the company's web site. As you can see, there is little if any actual physical work involved. Once a person becomes a part of a network, the sponsor will automatically receive their commissions and bonuses without having to call on customers, packing and shipping product, or keeping an inventory.
If you have a talent for motivated other people, network marketing may be a great opportunity for you. There is the potential to build a large sales organization. You can leverage the work of your down line with the possibility of earning a very large income.
No matter what you decide after you learn about direct sales vs multi level marketing, there are fantastic career opportunities in both fields. They say a salesman is never over paid. Start your sales career today.
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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   What You Shouldnt Do When Opting To Work At Home With Online Business Solutions Direct Selling Compared To MultiLevel Marketing Working From Home Haven or House Arrest Home business opportunities for you Benefits of having a 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: Newbi here
- thanks for your responses guys.. I really appreciate it.
Well, I have learned from realhomebasedsuccess dot com that there are home based business opportunities and ideas that could be our option such as:
-Selling Goods or Providing Services Online
-Making Money through Direct Marketing
-Becoming an Affiliate Marketer
-Getting Paid on a Click Thru
but I was thinking which is the best one and most effective in terms of generating consistent Ongoing Profits. What do you think? do you have any insights?
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.
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