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lavendersluv
Forums Member
Joined: 28 Jun 2005
Posts: 53
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#21 · Posted: 18 Jun 2006 11:33
Great discussion here, I too feel many that network marketing and MLM are the same many in the industry use both terms. I for one prefer to use network marketing. Each of us have to educate ourselves on what the industry is truly about many feel it is about the company, products/services or comp plan I disagree that this is what its all about when it is more than that.
Many are promoting and marketing the wrong product. Just my two cents.
Michelle
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getagrip
Joined: 20 Feb 2006
Posts: 2087
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#22 · Posted: 19 Jul 2006 02:24
I think the two terms are interchangeable...basically, they mean the same thing, althogh some people might dispute that until they are blue in the face...
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malibumentor
Joined: 27 Jun 2006
Posts: 354
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#23 · Posted: 20 Sep 2006 13:39 · Edited by: malibumentor
multi-levelmarketing pays out on many levels, sometimes ten or more. This is what defines MLM. The top recruiters are paid commissions on all sales made within their organization, at least as far as the company pays out by level.
GDI for example pays out on 5 levels and can be built as wide as you wish. Binaries like Success University pay out on more levels but you cannot build them wide at all. They are both still MLM.
Network Marketing is selling goods, services, or information through networking with other people. In some cases this means building an oragnization that pays out on multiple levels. In some cases this means building an organization that pays on 1 level ( like 1-up plans).
There are probably today more people earning six-figure incomes with 1-up and 2-up plans than with MLM plans. I am not saying that MLM can't be lucrative... but it does pay smallish commissions generally so you have to run a lot of money through the organization to get a living wage with it. This is the main reason people quit - they have negative cashflow from product purchases and marketing expenses and the commissions take so long to build they can't afford to stay in the game.
Its only generally feasible to build a strong MLM group if you can afford to stay in the game AND the people you recruit can afford to do the same. Why do you think there are so many MDs successful with MLM? They know and network with other successful people who can afford to stay in long enough to build a strong, profitable organization.
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coreyjroman
Joined: 11 Jul 2005
Posts: 88
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#24 · Posted: 10 Oct 2006 00:32
Quoting: xxain2001 Pyramid is when you get paid buy only joining people without selling any product to the person who joined
Quoting: CThompson An illegal pyriamid is driven by money and no product is sold.
Pyriamids are not bad.
Illegal Pyriamids are bad.
Technically speaking because there is no defined federal tax structurization for business conducted on the web... web based pyramids such as cash matrix, chain letters and perpetual buck sites are all legal. Ethical?...no. But ...legal? Yes. The illegallity of cash pyramids back in the day was determined by the goverments lack of tax re-imbursement and not by individuals losing money. The fact remains that with any business opportunity web or land based... There are always Winners and Losers.
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Robert A Kearse
Forums Member
Joined: 8 Dec 2006
Posts: 1
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#25 · Posted: 8 Dec 2006 15:13
Differences between MLM and network marketing:
MLM and network marketing use to be synonymous
terms since both referred to a compensation and
distribution system that had multiple levels.
With the development of the Internet some subtle but very
significant distinctions have emerged.
Everyone understands what affiliate programs are. You
should be aware there are substantial numbers of
affiliate programs that have multiple levels (more
than 2 for purposes of this discussion).
For instance I am in one affiliate program that has ten levels.
In my opinion here are two important distinctions that have
emerged to differentiate MLM from network marketing.
With traditional network marketing programs there is
nearly always an entry fee. That is, there is an initial cost
to get started, and the sponsor or upline typically earns a piece
of that fee,
Secondly, with traditional network marketing programs there
is usually a monthly sales/consumption quota for individual representatives.
These two requirements are lacking in a great many multi
level affiliate programs so it is my opinion that marketing
practices with the advent of the Internet have evolved to
an extent where MLM and network marketing are no longer
synonymous.
I think these two distinctions are important because:
(1) no entry fee means less risk and there is no
financial barrier to entry.
(2)no sales or consumption quota removes the "sell
or else" component that qualifies whether representatives
continue to earn. Note, many multi level affiliate programs
offer recurring income.
I hope this post will contribute to a meaningful distinction
between MLM(multi level marketing) and network marketing
and the two terms will gain distinctive meanings.
Best of success,
Robert
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nofreeride
Forums Member
Joined: 15 Dec 2006
Posts: 31
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#26 · Posted: 1 Feb 2007 10:56 · Edited by: nofreeride
Quoting: CThompson Illegal Pyriamids are bad
All pyramids by definition are illegal. I know it may be semantics to you, but in America MLM/Network Marketing is legal, but a pyramid is not. The organization of a network marketing company may look like a pyramid, but the pyramid definition is based upon the pay structure which is illegal. The term comes from "pyramid scheme" which was popularized by Ponzi scheme of Charles Ponzi. Research it. Pyramids are illegal.
Furthermore, I would never join a company that requires constant recruiting in order to receive bonuses or residual income. That's ridiculous, and if Melaleuca requires that, it is probably why they have never reached critical mass in the industry and never will.
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nofreeride
Forums Member
Joined: 15 Dec 2006
Posts: 31
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#27 · Posted: 1 Feb 2007 11:00 · Edited by: nofreeride
Quoting: lavendersluv Many are promoting and marketing the wrong product. Just my two cents
I could care less what the product is; although, I understand why people get hung up on it. It's the idea of residual income. I pick companies based upon the compensation plan. They may sell feces for food, but I don't have to eat it. I only have to buy it and promote it. Business is business and I only care about the compensation plan. Now, of course, a great product only makes the pot sweeter, but the product means nothing to me.
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stacy
Forums Member
Joined: 9 Oct 2007
Posts: 82
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#28 · Posted: 12 Oct 2007 17:01
Doesn't MLM require recruiting and team buiding whereas Network Marketing only requires selling? If you are promoting a product that requires others to sign up and build downline, then that would be a little bit of both. If you are promoting a tangible product, then I would think that would be Network Marketing but not MLM.
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agoodsaid
Forums Member
Joined: 13 Aug 2005
Posts: 53
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#29 · Posted: 12 Oct 2007 18:31
Nope, they're one and the same.
Andrea
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BeAChampion
Forums Member
Joined: 11 Sep 2007
Posts: 163
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#30 · Posted: 24 Oct 2007 17:42
There really isn't a difference between MLM and network marketing.
MLM pays on multiple levels and network marketing is just a term used to described to advertising a business through word of mouth or personal advertising.
Tim
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PeterB
Forums Member
Joined: 29 Aug 2007
Posts: 32
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#31 · Posted: 25 Oct 2007 04:51
no real difference, actually.
just avoid schemes where you will paid out of new member fees, instead of product sales...
regards, Peter
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mountainmom5
Joined: 30 Aug 2007
Posts: 3056
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#32 · Posted: 17 Nov 2007 09:05
Quoting: malibumentor Its only generally feasible to build a strong MLM group if you can afford to stay in the game AND the people you recruit can afford to do the same. Why do you think there are so many MDs successful with MLM? They know and network with other successful people who can afford to stay in long enough to build a strong, profitable organization.
And have you ever noticed that the Very Successful people NEVER quit...They are not sitting on their duff, collecting huge commission checks!They know that nothing just 'happens'....I heard a very successful business coach say once that you CAN quit working your mlm business after you have hundreds or thousands in your downline,but your check gradually dwindles...
The network marketing business is like any other business...you work it like a business, it PAYS you like a business...you work it like a hobby , it COSTS you like a hobby!!
I personally like the 1-up or 2-up plans as you get paid on your own efforts versus the efforts of your downline, but usually those cost more to get into.One thing to remember when you are building a team...the more it costs to get INTO a business , the higher the committment to stay in and work it...When you can get started in a home based business for almost nothing, is it any wonder so many people get disillusioned by it all??
Have a great weekend you'all!
Viola
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