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Is Network Marketing a dirty word in your book? How about Multi-level Marketing? To be honest with you both of these terms make me a rather uncomfortable, I much prefer the term Direct Selling. Now don’t get me wrong, I totally love my business! I love selling our products and I love helping others start their own business. I really like the concept of how this industry works but what I don’t like is the negatives that sometimes are associated with it.
The terms network marketing, multilevel marketing and direct sales don’t all mean exactly the same thing although they are quite similar in meaning and are often interchanged.
Multilevel marketing, also known as network marketing, is a way of selling goods or services through distributors. The premise is if you sign up as a distributor, you will receive commissions, for both your own sales of the company’s goods or services and those of other people you recruit to join as distributors. This definition is from the Federal Trade Commission’s Consumer information on multilevel marketing.
According to the Direct Selling Association Direct Selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location. These products and services are marketed to customers by independent salespeople.
Both business models have independent salespeople, distributors or consultants who sell the products or services to earn commissions on personal sales as well as people they recruit. The difference is the commission or pay plan varies between companies and there doesn’t seem to be a common structure.
I think it’s important to build your business by both sales and helping others start their own home based business with your main focus on sales. You can do this with many direct sales and network marketing companies, however some nwm/mlm companies focus mainly on recruiting new distributors and don’t encourage retail sales.
If you’ve shied away from joining a network marketing type business because of the things you’ve heard don’t let that stop you. Not all companies are the same, do some investigating before you rule it out. A real business has it’s foundation built on customers and clients so keep that in mind when you are looking at your options.
Whether I like it or not, my business is a network marketing business but thankfully it is also a direct selling business. I think I have the best of both worlds. You may find like I did, that networking marketing isn’t a dirty word when you find the right company to join.
8 responses so far ↓
1 Chad Reitsma // Dec 13, 2007 at 4:44 pm
I completely agree, once you find the right one you the sky’s the limit.
2 Melody // Dec 13, 2007 at 11:57 pm
Thanks Chad.
Yes, if you put the time and effort into it and treat it like a real business you can earn a decent income. If you are looking to get rich quick or make easy money, then you are in for a big disappointment.
Unfortunately, some marketers may say the sky is the limit however, they aren’t totally honest about what it takes to reach the sky! I’m betting they don’t even know themselves but they want to believe it so badly.
3 Annette // Dec 14, 2007 at 1:15 pm
Great post Melody. Network Marketing/Multilevel marketing and direct sales are both great business models when done well and with a reputable company that’s actually providing a real product.
I agree…don’t write off the industry just because of one bad story. Do some research and you just might find a business that you love.
4 Melody // Dec 14, 2007 at 4:16 pm
I’m glad that you concur with my conclusions Annette!
5 Promotional Dude // Dec 22, 2007 at 9:28 am
My Opinion: It is a dirty word to the uneducated, or those who have invested in bad business plans. My wife has been involved with a very popular makeup company for years, she makes great money, and drives a free car. The heart of the business is selling quality products that people love, and run out of then they need more. Where MLM programs have gotten the bad name is somewhere along the line, uplines started selling consultants on ordering more, instead of teaching them to sell to customers. And if the products don’t meet these criteria:
1. Needs to be reordered in a reasonable amount of time.
2. Quality, people highly recommend it to friends.
3. Selection for every need.
After that, the training needs to be good. The new business associates need to supported, and taught how to run a sales based business.
This is how MLM’s have gotten the bad reputation. Greedy people selling bad products and poor training make failed businesses.
I have no idea about Watkins, I have never checked them out. But my wifes company is amazing, it’s all about great products, god, and family. The training and support is impeccable.
If you are thinking of joining a MLM, look at the factors above, and one more thing look and see if there anyone above you that has been doing it for more than 5 years?
6 Mammo // Jan 15, 2008 at 7:13 am
I would like to second “Promotional Dude’s” comments. The key is not be seduced by the hype of the next new-bright-shiny thing. You must do your due diligence and make sure that you understand all of the ins and outs of the company you are researching.
Years in business, plenty of good and thorough training resources and good marketing materials for you to use are the tools you need for a successful partnership.
MLM has become associated with people’s bad experiences with a company which they never really investigated nor really worked.
Network Marketing/MLM does not have to be a dirty word.
7 Melody // Jan 15, 2008 at 11:07 am
I’ve never personally had a bad experience with any company but I’ve always treated my business like a real business.
Ah, yes I call the folks who are attracted to the new-bright-shiny-thing and keep joining one new company on top of another network-marketing junkies. The bright-shiny-thing is not the answer, they need to look at themselves and what they are doing to find the solution!
8 Christina // Jul 14, 2008 at 6:41 am
I have been with Watkins for 2 years and I love the products. I have a hard time selling the associate angle simply because I hate to bring anyone into MLM. My upline is a wonderful lady and I know I couldn’t stay in touch like she does. I’m slowly overcoming my trust issues with MLM and it is great to see such wonderful comments from honest individuals.
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