Why Network Marketing??

There are two major reasons why Network Marketing has become a much more viable distribution method in recent years -- and, therefore, an excellent business opportunity.

First, the consumer market has become too difficult to reach. People have VCRs with remote control, and there are hundreds of cable channels, so many people do not watch commercials anymore. Traditional mass Marketing methods are quickly losing their effectiveness.

However, people do listen to and believe the people they know. The success of books, movies and restaurants are largely determined by this word of mouth advertising. Network Marketing companies rely on this powerful concept to efficiently market quality products to millions of their consumers.

Second, advances in information technology have helped to make network marketing efficient and dependable. Voice mail, fax machines, electronic mail, the world wide web, video tapes, satellite links, and conference calls have also made communication between large distributor forces within a company rather simple and effective.

Ironically, some of the same technologies that have allowed traditional business to cut millions of jobs also makes possible an innovative marketing concept that is offering hope and opportunity to people from all walks of life. Network Marketing uses this technology to support people, rather than replace them.

You see, there are two equalizers for all of us . . . death and time. Each of us has only 24 hours in a day . . . no matter who or what we are . . . therefore the business-minded entrepreneur knows how to leverage time!

Instead of business-building results being based on one person's efforts over a period of 24 hours, it becomes possible to have numerous people working for you during that same 24 hour period. What's exciting is these people are working for themselves as well.

Multi-Level Marketing, through a networking process, gives us the hope of building a huge business empire through a process of duplication, resulting in considerable incomes for the participants. That is the MLM part of The Great American Dream . . . A Business For Everyone.

How do I feel about Multi-Level/Network Marketing? I love it! I love the concept! I love what it can do! MLM can give a person hope! It can motivate a person to do things they thought they could never do! MLM can cause many sleepless nights because of one's own excitement. MLM creates a special bonding among other networkers! MLM allows us the hope of The Great American Dream . . . Owning your own business!

Saturday, July 24, 2010

Network Marketing Vs Direct Sales

Network Marketing Vs Direct Sales

When looking at online opportunities, most companies fall into one of two categories:

1) Multi Level Marketing (MLM) or Network Marketing

2) Direct Sales / Top Tier Sales

Anyone who decides to join either MLM or Direct Sales clearly has drive, motivation, and wants to make money online. Tens of thousands of entrepreneurs have created massive wealth with both vehicles. So what is the difference between these two?

Which one makes the most sense for you and your financial needs? Here are 4 major differences between these two wealth vehicles. My intention is that this will clarify any confusion you have and empower you to choose which vehicle suits you the best.

Difference 1: Cost of Entry
MLM's typically cost anywhere from $150 to $1500 to become a distributor.
Direct Sales companies can range from $3000 to $20000 to become a distributor.

Difference 2: Up Front Cash
MLM's typically pay you much less than a direct sales company to sign someone up. MLM's often pay you anywhere from $30 - $100 to enroll a new member, where Direct Sales companies pay up between $1000 to $9500 for one sale. Therefore, direct sales organizations will give you more money on the front end to enroll someone.

Difference 3: Residual Wealth
The true power of the MLM model is in residual income. This occurs when your organization automatically purchases your companies products or services each and every month. When a member of your downline's Autoship kicks in, you get a small percentage. This small percentage multiplied by hundreds or thousands of people on an automatic basis is where massive and sustainable residual wealth begins.

Some Direct Sales organizations have residual pay plans now. Due your due diligence into that companies specific pay plan to know how the pay structure is set up.

Difference 4: Mentality/Production
If you are someone who likes being more accountable for your income, direct sales may be for you.

If setting up a huge passive income is for you, then MLM may be your best option. The downside of MLM is it often takes longer to start producing a professional income.

Some follow up questions:
1) Do you love leading a team of hundreds or thousands of distributors? Are you OK with not making a full time income at first, yet love the idea of building a stable residual income? MLM may be for you.

2) Do you like being paid on your own efforts, your own marketing and lead generation knowledge, and want to make more money faster? Direct sales may make more sense.

Both vehicles can, and do, make people massively wealthy. Weigh the pros and cons and determine which model fits your goals, needs, and aspirations
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