MLM vs Network Marketing what the difference here?

Discussion in 'Network/Multi-level Marketing' started by xxain2001, Oct 17, 2005.

  1. xxain2001

    xxain2001 New Member

    Many people are confusing about the two names , actually MLM and Network marketing are both same but theonly differnce is in the way they do the business

    MLM means they pay you on a multi level , the market is based on Multi level unfortunitly most of home business today are based on this illegal scam market which known as a Pyramid

    but what the hell is pyramid ? how do I know the company is legal or illegal ? pyramid or not?

    here is the answer :pyramid is when you get paid buy only joining people without selling any product to the person who joined, for example:

    say person A pay $20 USD to join XYZ company , the only thing he will get is an ID number then he will tell person B to join, at this time the company will pay a commision to person A from that $20 been paid by person B and so on , there is no product just a money moving arround

    Network Marketing is a group of people who currenlty enjoying a benefit of products offered by a network marketing company , they like the product alot that they like to recommend every one to use it.

    from that idea the company will reward people who recommending their products to other people , its like recommending your friend to watch a movie that you saw last week but you dont get paid when your friend buy the ticket.

    there is nothing wrong here of getting paid by marketing your company product .
    since its the product that you use frequently so why not tell other to use it and if the product has helped you to improve your life why not help other to get the same result you have by using the same product . and since you are helping the company to get more customers why not the company help you by paying you commision on every product sold by your recommendation ,

    its really ironic that people think network marketing is evil when they actually try to help and make other people life better buy offering them a great products and a great oppotunity

    if you are in network marketing my advice to you is first to find some one who have the same problem as yours before you start using the product , if its work on you it will work on other person as well . tell that person how the product did help you then if that person want to buy then you can tell him how he can get the product for nothing by recommending other people about it

    you can tell that network marketing is not a business of joining people, the company only pay you when someone buy the product and he has been recommended by you.

    network marketing is about sharing the product that you use frequently with your family , friends , and other people , you want to tell them that the product has made your life better and it might ot might not work the same way to your firend but at least you tried to recommended them some thing good that will make their life better. Network marketing is not a scam , its like any other business in life, first you give then you shall recieve .
  2. pcincome

    pcincome New Member

    Actually, MLM and Network Marketing are one and the same as is Referral Marketing, Word Of Mouth Marketing and many other versions I've run across. It's all the same business model and if you're not familiar with it, here's an industry presentation by an industry leader that is totally free to the industry to help explain how it works [Link removed - Moderator]. This is not my link nor an affiliate link and I make no money using Word Of Mouth marketing or Referral Marketing when I share this with you.
  3. agoodsaid

    agoodsaid New Member

    There is no difference ...

    MLM and NWM are different words for the same thing.

  4. Goldie

    Goldie New Member

    I think you will find that network marketing, building a network of members faithful to a product is very much different than building levels of marketing which unfortunately seems to be the case with most mlm's.

    In network marketing, there is an end product not just more marketing. The company, whoever they may be, pays directly to the distributor a percentage of profits non-dependant on recruiting more people to the business. The product is the profit, recruiting is a way of gaining more distributors on behalf of the company.

    Again in mlm (which I have sampled many times) the end product is simply more marketing, which eventually becomes a vicious circle or pyramid of marketers, all marketing to each other and to unfortunately some unsuspecting individuals who believe that they can trully make money selling nothing more than more marketing.
  5. coreyjroman

    coreyjroman Silver Member

    It is true that there is really no difference between the 2. I have been involved for years with companies that describe themselves as both and there is technically no difference. In "network marketing" you make money by representing and selling products and services for an organization that can be increased exponentially by creating a downline of representatives who do basically the same thing. Most "network marketing" plans will pay you a percentage from your downline's sales many levels deep. "Multi-level marketing" plans that are legitimate do precisely the same thing. The only real difference here is sorting through the bad ones to find the true income opportunities... regardless of what title they use i.e.: network marketing or multi level marketing or downline marketing.
  6. philena30

    philena30 New Member

    I was in an argument about Melaleuca being sales instead of networking marketing. You tell me what's what.. If this is the case then we are all in sales period.

    Definition of Sales
    The exchange of goods or services for an amount of money or its equivalent; the act of selling.
    An instance of selling.
    An opportunity for selling or being sold; demand.
    Availability for purchase: a store where pets are for sale.
    A selling of property to the highest bidder; an auction.
    A special disposal of goods at lowered prices: coats on sale this week.
    Activities involved in selling goods or services.
    Gross receipts.

    The revenue from the sale of goods and services. Sales exclude other types of revenue such as dividends, interest, and rent.

    n : income (at invoice values) received for goods and services over some given period of time [syn: gross sales, gross revenue]

    Melelueca is Sales!

    While we're at it...

    Multilevel Marketing: Multilevel Marketing is selling products by using independent distributors and allowing these distributors to build and manage their own sales force by recruiting, motivating, supplying, and training others to sell products. The distributors' compensation includes their own sales and a percentage of the sales of their sales group (downline). ...

    Melaleuca is also MLM!

    Then poor me say, "I thought selling means that I have to buy the products at wholesale or discount and sell them at a higher price like Mary Kay or Avon??? How is this the same?"

    The truth is, IF products and services are not being sold, it is a pyramid! Product is moved in any legitimate business. You get paid when product is sold. You have to sell someone on coming to a presentation, the presentors have to sale them on signing up, you have to sell them on giving you all their pertinent information over the phone. You have to sell them on placing a monthly order. It's all SALES and the prospect knows it. They see it as dishonest whhen you call it anything else.

    Here's the definition of "sell"

    sell ( P ) Pronunciation Key (sl)
    v. sold, (sld) sell?·ing, sells
    v. tr.

    To exchange or deliver for money or its equivalent.
    To offer for sale, as for one's business or livelihood: The partners sell textiles.
    To give up or surrender in exchange for a price or reward: sell one's soul to the devil.
    To be purchased in (a certain quantity); achieve sales of: a book that sold a million copies.

    To bring about or encourage sales of; promote: Good publicity sold the product.
    To cause to be accepted; advocate successfully: We sold the proposal to the school committee.
    To persuade (another) to recognize the worth or desirability of something: They sold me on the idea.

    v. intr.

    To exchange ownership for money or its equivalent; engage in selling.
    To be sold or be on sale: Grapes are selling high this season.
    To attract prospective buyers; be popular on the market: an item that sells well.
    To be approved of; gain acceptance.
    When people say "I don't like sales" or "I'm not a sales person." They mean, they don't feel they're very persuasive, NOT "I don't think I could buy a product wholesale, and sell it retail, and exchange cash for the product."

    If someone is adverse to sales...let them go! You CANNOT LOSE what you never had anyway! If you have to sell them on that it's not sales, then you'll have to "not sell" them on "not sellling" to prospects, and "not sell" them on ordering every month! Am I confusing you yet? Imagine how the prospects feel!

    Read this book: All Marketers Are Liars by Seth Godin. People HATE plays on words, they love honesty. So here's an HONEST alternative to the "no sales" lie:

    "Now prospect, with our team there is NO AGRESSIVE SELLING. We won't have you acting like a sleazy car salesman! Matter of fact, we tend NOT to like having those types of people on our team! But you MUST be willing to talk to people about our business & products, send them to a 3rd party tool, such as a conference call, recorded message, or website which will do all the telling, selling, explaining, presenting, and convincing for you, and then follow up and ask them if they're ready to get started. If they say yes, they'll join your team, if they say no, that's all there is to it, No haggling, persuading, handling objections, none of that UNLESS you want to. This is your business, so you choose how you run it. So do you think you have to ability to get to know a person, send them to a 3rd party tool, answer their questions and help them get started?"

    If you tell them NO SALES they think they won't have to talk to anyone! Tell the truth! You'll be better off! The people who don't want sales will be the HARDEST, most UNTEACHABLE people you'll ever have to deal with, who will fight you tooth and nail on everything!

    So are they saying that everyone ad copy that says no selling, is lying and should be removed? Or should we say, no direct sales? But to me, You should say sales at all, that will confuse the prospect. what do you think?
  7. agoodsaid

    agoodsaid New Member

    Hi Philena -

    Melaleuca is a network marketing/mlm company.

    We're all sales people.

    "No selling" to me means that there's no inventory held, that there's no direct selling (or doesn't have to be). But I think that's something that can smartly be inferred form a 'no selling' ad, don't you?

    Those poor folks at Mela have more to worry about than that *no selling* platform and no online advertising though ... did you know they can never retire ??

    Did I get at what you were posting about ?

  8. philena30

    philena30 New Member

    I understand about the no retiring thing. That's what the big guru from Mentoring for Free was complaining about which is why he left it. But What I don't understand is, Mela has retirement seminars and plans in place for us to teach how to invest and pay off everything. So, when you are ready to quit, you have no worries, the kids are financially well, and everything is okee dokee. So.. I say they do have retirement, it just that you have to volunteer for the services so you will be str8. Makes better since to me to do it this way, then to try to pay executive directors that are already making millions, pensions or something. When you reached the point of making millions a year and you're only in your late 30's to 50's, you really only need to work the biz for 5-8years then quit. You'll still have the residual. Personally, if I only had to enroll one person a year to keep my residual, I'll be 90 years old still working the biz enrolling that one person. [​IMG]

    Do alot of MLM/network marketing companies offer retirement plans? Just curious?
  9. agoodsaid

    agoodsaid New Member

    Hmmm ... that's pretty responsible of them to offer education like that. Any extra financial education is a good thing I always say [​IMG]

    But here's the thing.

    First, it's really none of their business what we do with the money that they pay out.

    Second, any business I bring to a company I want credit for no matter whether I'm actively recruiting or want to take 6 months, a year, the rest of my life off from.

    What if I become disabled unexpectedly? What if my kids need their Mom? What if we just want to take some personal time??

    I'm not talking about pensions. I'm talking about the the portion of business that the company does because I brought it there.

    Comission on sales volume.

    As long as sales are happening within the plan that we build, it's mho that we are the ones who should be receiving the residual, no matter how we perform this month, no matter what levels of achievement we reach.

    Think about it. If it doesn't go to us, where does it go? I think you can probably guess [​IMG]

    You're right though, the companies that are not subscribing to the new "corporate MLM" mentality are hard to find. But so worth hunting for, eh?

  10. pcincome

    pcincome New Member

    Quoting: agoodsaidThose poor folks at Mela have more to worry about than that *no selling* platform and no online advertising though ... did you know they can never retire ??

    Am I understanding this correctly?
    If not, please clarify for my own curiosity.
    Thank you.

    I am not a Mel rep but was told by a Mel rep that in order to receive your residual check monthly, you need to recruit at least one rep per month. No recruit, no residual.

    Your statement about not being able to retire brings up a question for me then. Are you saying that you need to recruit at least one person per month for ever in order to receive your residual for ever?

  11. agoodsaid

    agoodsaid New Member

    Hi Karen -

    I don't know what the numbers are exactly (I can get you on the phone with someone who knows from personal experience if that'd help), but yes, there are quotas and I think that they increase as you build your biz/check.

    No makie no checkie.

  12. pcincome

    pcincome New Member

    Hi Andrea

    I don't really have to have the information, just curious because of some choices some people in my group made that didn't work and I can't help but wonder why but the more I ask, the more it makes sense.

    There's a saying that goes:
    "If you think the grass is always greener on the other side, perhaps it's time to start tending your own lawn"

    Thank you for the offer though.

  13. agoodsaid

    agoodsaid New Member

    Yeah, know what you mean ... I don't really want to know all the grimey details of other people's programs, but I have found it good to have a feel for the challenges they may be facing.

    Handy to have an idea of what's going on in the industry.

    Don't like to spend too much time there though ...

    Anytime, anytime [​IMG]

    Make it a great day!
    (headed elsewhere to get some lawn tending of my own done)
  14. philena30

    philena30 New Member

    OK.. Well.. here's the difference about MLM and Consumer direct marketing with Melaleuca. The main difference in MLM is that you can't pass your enroller. Meaning that if I enrolled someone as a director and they enrolled more than me, they will still be under me. That's why Melaleuca is not MLM..

    Ex. If I'm a director, and I enroll someone and they become a director, I will be a director II, but if they made all those people directors and I'm still not doing anything with my business personally, or didn't assist them, they will be Senior Director making more than I am, while I'm still stuck as just a Director II because I'm not building my business as quickly as they are. IN MLM, your enrollments can't pass you up in status. In consumer direct marketing they can. Because in MLM no matter what I do, if they become Senior Directors, I would be bumped to Senior Director II automatically.

    Now, for the retiring thing, You still have to maintain leadership pts. This could be enrolling or giving presentations. Most people, when they reach a certain status, they just do presentations to help their members. So, that's no biggy. If I'm making alot of money, to keep that going, all I will have to do is presentations every 3 months or so. That's not bad for retiring with. At least in my eyes it isn't. Now, if I'm disabled, or terrible happens.. unless you lose your voice too, you could still maintain your biz. to a point. But with any business, if something were to happen to you unexpectedly, you will lose money.
  15. agoodsaid

    agoodsaid New Member

    Hi Philena -

    Quoting: philena30The main difference in MLM is that you can't pass your enroller.

    Well, not necessarily, this depends entirely on the type of comp plan that you're working with. A good one will offer everyone equal opportunity.

    Melaleuca doesn't like to be lumped in with "MLM" as a word/concept, but it absolutely is a MLM / networkmarketing company. They finesse the wording, they teach their people otherwise, but it is what it is. A network marketing company.

    Quoting: philena30Now, if I'm disabled, or terrible happens.. unless you lose your voice too, you could still maintain your biz. to a point. But with any business, if something were to happen to you unexpectedly, you will lose money.

    Again, these are things (like company imposed maintenance requirements) that we each have to decide whether we're willing to put up with. From my perspective, I'm an independent business owner and the company works for me.

    If I decide to never make another presentation or choose not to attend an event ('cause command performances for those things are not uncommon either), I want to be aligned with a company that's okay with that.... make sense?

    Of course supporting your group is important and attending corp. events is generally very valuable, but as you build leaders who build leaders ... isn't the idea to be able to eventually step away without penalty reasonable?

    And yes any business that requires your personality, your input on a regular basis to keep growing will cost you money if you suddenly stop (in this case I guess we're talking company policy that dictates that). That's why duplicating leadership is so important.

    So I'm gathering you're a Mela rep??

    The important thing is that we go in with our eyes open. That's really all that matters, that we are clear and comfortable with our choices.

  16. philena30

    philena30 New Member

    All I'm saying is the history of high income earners speak for itself with them. It's just a shopping club. That's it. It's one of the best companies to get your feet wet in learning what it takes to building a success online, but eventually you branch off into other ventures. But what's the usual response when ppl branch off, "I'm still a customer and I love the products but..." So when people talk about being scammed and alot of bogus companies that fall under, I can't help but be thankful that we have companies like Mela to help ppl pay bills or a car note. But I don't see how any MLM companies are design to retire from unless you have your own. Bottom line. And most ppl don't want to have their own or quit their day jobs, they want something simple and affordable while improving their health. I can't see how it would be any different from me being an affiliate to Walmart or something. Then you would have to explain to me how walmart is a MLM.
  17. agoodsaid

    agoodsaid New Member

    Affiliate programs are not considered MLM because they do not pay below a first or second level.

    If Walmart paid deeper than 2nd level then they too would be considered to have an MLM program.

    MLM programs that do not have quotas and management rquirements built into their policies and procedures can be retired from.

    I 'spect you can't even say you're a M rep on forums ... sorry to put you on the spot.

  18. pcincome

    pcincome New Member

    Quoting: agoodsaidMLM programs that do not have quotas and management rquirements built into their policies and procedures can be retired from.


    My company anyway (and I don't say it because I'm not here to promote, only to network) has a retirement plan built into it when you reach a certain level in the marketing plan. There are no quotas to be filled when someone chooses to retire and THAT'S why I chose my company.

    Quoting: philena30Ex. If I'm a director, and I enroll someone and they become a director, I will be a director II, but if they made all those people directors and I'm still not doing anything with my business personally, or didn't assist them, they will be Senior Director making more than I am, while I'm still stuck as just a Director II because I'm not building my business as quickly as they are. IN MLM, your enrollments can't pass you up in status. In consumer direct marketing they can. Because in MLM no matter what I do, if they become Senior Directors, I would be bumped to Senior Director II automatically.

    Not exactly true. I have downline on my team who are at a higher level of the marketing plan than I am. They are there because they worked harder than I did. Sure, it has helped to push me up the marketing plan as well but I won't get to where they are unless I work a little harder myself. That's why it's called netWORK marketing. [​IMG]

  19. philena30

    philena30 New Member

    Yeah.. Meleleuca (yes we can say it in forums.[​IMG] . has to stay competitive.. Even with retirement. But it's completely voluntary. They have financial and telecommunication services as well. The way they build their compensation is not really meant for retiring from they rather teach people how to invest in their own retirement, but any company can do that.. no big deal. They have seminars for retirements just like regular companies that are not MLM.

    Like I said, alot of the top income earners branch off but are still customers. I think the CEO really wants this to be even focused. Health and business alike. If you too focused on the business side of it and not about health as well, you will not be successful. Besides.. alot of them make more money on supplying leads and/or coaching. That's really how they branch off, if you ask me. [​IMG]

    But I just don't see it as a MLM because it's just a shoppin club to me. You know how when you join networking communities, and you have to pay a monthly fee to use all the tools or to be upgraded? It's like a biz opp within itself like adlandpro or direct matches. That's why I stick with the same format biz opp programs. At least I can give a person a choose, but I still explain how it works the same way, it's still not direct sales or inventory. I don't see a difference just because it's products vs. email accts, traffic exchangers, and autoresponders.

    But I'm afraid I'm the lone ranger in this. I thought that someone else in the biz would say something awhile ago, but since I'm in the same type of discussion in two different forums by myself, I see I must be lost..

    So.. I still like promoting the concept.
  20. CThompson

    CThompson New Member

    I believe your confusing NWM with Direct Sales.
    Which is a different business model.

    Direct sales and multilevel marketing are both network marketing.

    An illegal pyriamid is driven by money and no product is sold.

    Pyriamids are not bad.

    Illegal Pyriamids are bad.

Share This Page