What is Network Marketing? Network Marketing is a system of doing business that involves Networks of People who use and recommend products, and then sponsor and train others to do the same.
Once you understand it, you’ll see why Robert Kiyosaki calls it “The Perfect Business!” And, it really is. It’s an equitable form of developing a business and teaching others how to do the exact same thing.
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What is Network Marketing? What is MLM? What is Direct Sales? How about Party Plan?
Great question; and one that many have a hard time explaining. They all differ slightly.
First, Direct Sales encompasses all three of the others. Every Network Marketing, MLM and Party Plan company is involved in Direct Sales. They are all part of the industry or Direct Sales.
Direct Sales – M.L.M. – Network Marketing
Let’s define these –
They are often used interchangeably and do have some distinct differences. Direct Sales encompasses both Network Marketing and Party Plan.
So, basically all companies of these types are Direct Sales companies.
Thus, the personal consumption model. And, because many of these companies pay large bonuses in their comp plans, $150-400 monthly auto-ships are not uncommon.
Network Marketing has been more thought of (in recent times) in terms of build a team, and use your auto ship for personal consumption. Many network marketing companies have a wholesale cost on their products that FAR exceeds what the public is willing to pay, so there is no “retail-ability.” Be careful and evaluate this closely so you don’t struggle with it later.
There is no doubt that in Network Marketing, more emphasis is placed on building a team, because that is where the big money is made. But, never underestimate the power in customers!
Then, there is Party Plan.
These types of companies typically have larger ($400 plus) personal volume requirements and quotas for monthly parties, etc. You often “earn your kit” by having a certain number of parties FIRST, before you are considered a distributor. There is some emphasis placed on building a team, and this will definitely provide more income over time.
So, educate and research before you make a decision. There are several “hybrid type” programs out there now offering products where one can retail and earn immediate income with large personal volume quotas; and with deeper, network marketing type pay plans.
Make sure you align yourself with a company where you can make good money by actually moving products into a customer base. Having a strong base of customers creates ongoing income and retention with your team, too.
After 20 years in the profession, I know that there is so much to be learned through a business like this – good communications skills; scheduling; organization and business skills. And, a great income that you have control over!
Did you know that in just a few hours a week, you can create a major second income that continues to increase over time? In fact, with persistence and commitment, this income could soon replace your current full time income. It could even create a lifestyle of the rich and famous.
That is Network Marketing; Direct Sales.
This video explains more –
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