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Are Network Marketing and
Multi-Level Marketing the Same Thing?
As companies all over the world look for ways to market
their products to consumers as cheaply as possible, network
and multi-level marketing are fast becoming the buzzwords of
the industry.
In many cases, these two words are being used
interchangeably. In an attempt to avoid the rather tarnished
reputation it has had bestowed on it, many multi-level
marketers are in fact now calling themselves network
marketers.
Originally, however, these two titles had very different
meanings. Before you decide which business opportunity you'd
like to pursue, it's important that you understand the
differences and the similarities.
Although multi-level marketing is often a used in network
marketing, it is actually a completely different concept.
When most people mention the term multi-level marketing, the
company that immediately comes to mind is Amway.
Multi-level marketers make their money by introducing others
into their programs as distributors. They are then paid a
commission on the revenue that the person they introduced
brings in. This continues as more and more people are added
to the downline.
Successful multi-level marketers are making money off of
other people's work. The idea is that as you continue to
recruit new people into the organization, you move yourself
up from a worker bee to management. Rather than actually
selling any product, you're responsible for additional
recruiting, training and motivation for your team as it
grows.
In many multi-level marketing programs, commissions are paid
way down the line so the more people you and your team bring
on, the better. Network marketing on the other hand,
actually has a much wider scope. As mentioned above, it can
include multi-level marketing but also has many other
facets. Network marketing is quite simply using your
relationships to sell a product or service.
Most of us do a little network marketing every day. The
difference is that we don't really know that's what we're
doing and we're not actually getting paid for it. Let's say
you saw a great movie and recommended it to all your
friends, you are doing network marketing for the theatre and
the Film Company that produced the movie.
The same goes for a favorite restaurant; article of
clothing, favorite album or a good book you just read.
Herein lies the difference between network marketing and
multi-level marketing. Network marketing does not have to be
multi-level nor does it have to include building a downline.
The most successful network marketers today are simply using
their relationships to encourage others to purchase specific
products. The most prevalent network marketing is happening
on the Internet.
As companies like Amazon.com introduce affiliate programs
that allow network marketers to display and sell their
products on their websites, the number of sites being
designed simply for this purpose continue to grow by the
thousands every day. Originally offered as a way for
webmasters to generate additional revenue for their sites,
it's actually become the reason for the site.
The difference between this type of network marketing and
the kind you're doing when you send someone to the bakery
you just visited is that in this case, you're getting paid.
Some network marketers, as a matter of fact, are getting
paid extremely well.
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