MLM vs Network Marketing: What is the difference?

[Driven_Magazine]

Both of these business models confuse me, I am attempting to find out which

one is more lucrative, and which is not a scam. I have been told that

network marketing was all scams. Please elucidate the differences for us

[Rich Grads]

Both of these business models confuse me, I am attempting to find out which

one is more lucrative, and which is not a scam. I have been told that

network marketing was all scams. Please elucidate the differences for us

Driven_Magazine, Both MLM and Network Marketing are technically the same thing. What they are describing is a business model which is more about how the distributors and associates of the products and services get compensated by the company for sales of products or services sold by them. Customers can also decide to become distributors who get paid on "Multiple Levels" for the sale of products and services as well.

Think of it in the same way as a real estate brokerage. If you are a broker and I'm one of your agents, every time that I sell a house, you get a small portion of the commission as well. And shouldn't you? You hired and trained me, provide the office and a place to do business, provide the support I need, etc.

So if you were a real estate broker, wouldn't you want a lot of agents selling houses? Same thing in MLM/Network Marketing. You want a very large 'network' of distributors and associates so that you can get compensated for a large organization. It's the ultimate "leveraged" business model.

There is more difference between MLM (Network Marketing) and Direct Selling. In direct sales, there is not any other levels that commissions will be split and earned. Think of Dell computers. They sell direct from Dell and deliver the customer with the computer. No "educator" or distributor or associate is in-between the manufacturer and the end consumer.

Neither MLM or Network Marketing is a "scam." What is a scam is how the business model is manipulated by bad people. Here is a link to an article that explains what a "scam" and "pyramid scam" is all about. The article is by Tim Sales who is a Network Marketing trainer.
MLM Scams | Pyramid Schemes | The Truth About Multi Level Marketing | First Class MLM

If you want to learn more about the power of the Network Marketing business model, I suggest watching this 25 minute video called Brilliant Compensation. It is also done by Tim Sales. It is fantastic and by the end, you will understand why the business model is so powerful and why it's becoming more popular for people to get involved in.
Brilliant Compensation

Unfortunately, there are a lot of myths about Network Marketing out there. One is that people think that it is "get rich quick" and it's not. It's a real business that takes skills, time and effort. But for those people (and it's not everybody) who put in the work, it can be incredibly lucrative. It's working great for me.

I would suggest that you listen to people who know what they are talking about and who are successful at it as opposed to people who have a bad "opinion" or who "did poorly" in MLM/Network Marketing. It just makes more sense to listen to successful people to get a true idea of if it is right for you - because there are a lot of "opinions" out there! The business model works, no matter what anybody tells you. But not everybody works the business the way they need to in order to be successful.

Hope that helped!

Cheers!

[Driven_Magazine]

Thank you for that information, it really help me to understand the two!

[myfayt]

Basically to sum it up, don't do either.

[Scar Tissue]

Has anyone heard about Donald Trump starting an MLM network called Trump Network?