MLM - Network Marketing - Direct Selling
MLM - Multilevel Marketing is selling products through independent distributors and allowing these distributors to build and manage their own sales force by recruiting. The distributors' compensation includes their own sales and a percentage of the sales of their sales group (downline).
Payment for product is paid through company channels and the distributor is paid a small commission either weekly, bimonthly or monthly by the company. In addition to commissions on product sales a distributor can win bonuses and be awarded larger percentages of commission for volume sales.
Network Marketing - A business in which a sales distribution network is needed to build the business. Usually such businesses are also MLM in nature in that payouts also occur at more than one level of the sales organization. The term Network Marketing is sometimes used incorrectly to indicate that the business is not an MLM.
Payment for product is paid through company channels and the distributor is paid a small commission either weekly, bimonthly or monthly by the company. In addition to commissions on product sales a distributor can win bonuses and be awarded larger percentages of commission for volume sales.
Direct Selling or Direct Marketing - Direct Selling or Direct Marketing as it is sometimes called, simply means grass roots, face-to-face, person to person distribution of products. It’s often used to refer to party-plan MLM companies. Product payment and commission paid to the distributor is similar to MLM and Network Marketing.
Direct Sales - Unique compensation plan equal to corporate comp plans for the direct sale of a high ticket product to the end user. Large commission per single product sale - from 50-70%. Additional residual compensation rewarding organizational growth from sales team. Additional sales coming from the organization is paid directly to the distributor. The money flows upward.
The purchase payment for product is paid directly to the qualified distributor; the distributor and customer notify the company through a company channel to give credit for the sale to the distributor and assign the new distributor status in the sales organization.
The payment breaks down into a wholesale amount that is shipped to the company via electronic transfer or mail. The retail profit is kept by the distributor.
The direct sales distributor manages all aspects of their business including payment of taxes. They provide a payment gateway for product sales. They provide marketing instruction, training avenues, motivation, personal coaching to their sales team. It is to a distributor's advantage to know their team well and to assist each member of their team to success. Assistance is provided when asked. It is never forced. Each individual distributor is in business for himself and takes responsibility for results.
Distributor – A Distributor or Independent Distributor is a person who sells products for a company while acting as an independent contractor. They are also sometimes called an Independent Representative (IR) or an Independent Sales Representative.
Downline - Downline is a term that refers to the distributors sponsored directly in your group, as well as those sponsored by other distributors related to your group. This term was first used in a multilevel marketing company.
Entrepreneur - An entrepreneur is someone who assumes the financial risk of beginning and managing a new business venture. The venture can be based on an innovation of an accepted business model, or a tried and true business model or something unique that's never been done before.
Affiliate - An entrepreneur that agrees to represent and sell product(s) for a business. There is usually no residual income leverage. Occasionally, the affiliate agreement will include upsells which gives two or three commission payments on one sale and/or a membership product sale would pay a re-occuring monthly commission. The commission can be from small to high - 15%-75%
Ponzi Scheme - Ponzi scheme named after Charles Ponzi who in the 1920's told thousands of people that if they invest in his mail coupons that he could provide a 40% return in only 90 days. He collected over $1 million in a three hour period and during the investigation it was found that Ponzi had only spent $30 on his worthless mail coupons. To make the scheme look legitimate he would pay off early investors as new investor money came in.
The term Ponzi scheme is often misused and mistaken for a pyramid scheme, the essential difference is that Ponzi scheme participants are not offered any direct financial incentive for bringing in other participants. However, they are likely to tell their friends about the investment opportunity.
Ponzi schemes still exist today - You remember Bernie Madoff who fleeced individuals over 20 years of billions of dollars. By the time people realize they have been scammed, the con artist has fled with the money.
Pyramid Schemes - A pyramid scheme is an illegal multilevel marketing program in which people pay an entrance fee for the opportunity to recruit others to do the same. Pyramid schemes usually have no products or a chintzy product of no real value. Chain letters in which you send money to the person who sent you the letter, then you forward the same letter to a number of others is an example of a pyramid scheme.
Because pyramiding (getting commissions from recruiting new members including "sign-up fees") is illegal in most states, to remain legitimate in the U.S. a company that uses multi-level marketing has to make sure commissions are earned only on sales of the company's products or services if they cross state boundaries. If participants are paid primarily from money received from new recruits, or if they are required to buy more product than they are likely to sell, then the company may be a pyramid scheme, which is illegal in most countries.
Leverage - strategic advantage; power to act effectively; "relatively small groups can sometimes exert immense financial leverage"
Leverage is what you get when you associate your business model with a group of people interested in marketing with you. You can gain leverage as an affiliate marketer, direct sales marketer or mlm marketer. You can decide which business model most appeals to you and get leverage working for you and your financial goals.
Payment for product is paid through company channels and the distributor is paid a small commission either weekly, bimonthly or monthly by the company. In addition to commissions on product sales a distributor can win bonuses and be awarded larger percentages of commission for volume sales.
Network Marketing - A business in which a sales distribution network is needed to build the business. Usually such businesses are also MLM in nature in that payouts also occur at more than one level of the sales organization. The term Network Marketing is sometimes used incorrectly to indicate that the business is not an MLM.
Payment for product is paid through company channels and the distributor is paid a small commission either weekly, bimonthly or monthly by the company. In addition to commissions on product sales a distributor can win bonuses and be awarded larger percentages of commission for volume sales.
Direct Selling or Direct Marketing - Direct Selling or Direct Marketing as it is sometimes called, simply means grass roots, face-to-face, person to person distribution of products. It’s often used to refer to party-plan MLM companies. Product payment and commission paid to the distributor is similar to MLM and Network Marketing.
Direct Sales - Unique compensation plan equal to corporate comp plans for the direct sale of a high ticket product to the end user. Large commission per single product sale - from 50-70%. Additional residual compensation rewarding organizational growth from sales team. Additional sales coming from the organization is paid directly to the distributor. The money flows upward.
The purchase payment for product is paid directly to the qualified distributor; the distributor and customer notify the company through a company channel to give credit for the sale to the distributor and assign the new distributor status in the sales organization.
The payment breaks down into a wholesale amount that is shipped to the company via electronic transfer or mail. The retail profit is kept by the distributor.
The direct sales distributor manages all aspects of their business including payment of taxes. They provide a payment gateway for product sales. They provide marketing instruction, training avenues, motivation, personal coaching to their sales team. It is to a distributor's advantage to know their team well and to assist each member of their team to success. Assistance is provided when asked. It is never forced. Each individual distributor is in business for himself and takes responsibility for results.
Distributor – A Distributor or Independent Distributor is a person who sells products for a company while acting as an independent contractor. They are also sometimes called an Independent Representative (IR) or an Independent Sales Representative.
Downline - Downline is a term that refers to the distributors sponsored directly in your group, as well as those sponsored by other distributors related to your group. This term was first used in a multilevel marketing company.
Entrepreneur - An entrepreneur is someone who assumes the financial risk of beginning and managing a new business venture. The venture can be based on an innovation of an accepted business model, or a tried and true business model or something unique that's never been done before.
Affiliate - An entrepreneur that agrees to represent and sell product(s) for a business. There is usually no residual income leverage. Occasionally, the affiliate agreement will include upsells which gives two or three commission payments on one sale and/or a membership product sale would pay a re-occuring monthly commission. The commission can be from small to high - 15%-75%
Ponzi Scheme - Ponzi scheme named after Charles Ponzi who in the 1920's told thousands of people that if they invest in his mail coupons that he could provide a 40% return in only 90 days. He collected over $1 million in a three hour period and during the investigation it was found that Ponzi had only spent $30 on his worthless mail coupons. To make the scheme look legitimate he would pay off early investors as new investor money came in.
The term Ponzi scheme is often misused and mistaken for a pyramid scheme, the essential difference is that Ponzi scheme participants are not offered any direct financial incentive for bringing in other participants. However, they are likely to tell their friends about the investment opportunity.
Ponzi schemes still exist today - You remember Bernie Madoff who fleeced individuals over 20 years of billions of dollars. By the time people realize they have been scammed, the con artist has fled with the money.
Pyramid Schemes - A pyramid scheme is an illegal multilevel marketing program in which people pay an entrance fee for the opportunity to recruit others to do the same. Pyramid schemes usually have no products or a chintzy product of no real value. Chain letters in which you send money to the person who sent you the letter, then you forward the same letter to a number of others is an example of a pyramid scheme.
Because pyramiding (getting commissions from recruiting new members including "sign-up fees") is illegal in most states, to remain legitimate in the U.S. a company that uses multi-level marketing has to make sure commissions are earned only on sales of the company's products or services if they cross state boundaries. If participants are paid primarily from money received from new recruits, or if they are required to buy more product than they are likely to sell, then the company may be a pyramid scheme, which is illegal in most countries.
Leverage - strategic advantage; power to act effectively; "relatively small groups can sometimes exert immense financial leverage"
Leverage is what you get when you associate your business model with a group of people interested in marketing with you. You can gain leverage as an affiliate marketer, direct sales marketer or mlm marketer. You can decide which business model most appeals to you and get leverage working for you and your financial goals.
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