Network Marketing vs Direct Sales


Network Marketing vs Direct Sales

Network Marketing Direct Sales
CustomersVolunteersAny TimeIncentives

Any Territory

Residual Income

Leverage Income

Exponential Growth

Business Transferable

Own Business

Franchise type of Business

Unlimited Income

Everyone helps you

Relationship Business

No Experience / Skills Required

No Retrenchment

Sales PeopleEmployeesFull TimeSales Quotas

Fixed Territory

No Residual Income

No Leverage Income

Linear Growth

Business Not Transferable

Somebody Else’s Business

Traditional Business

Glass Ceiling

Office Politics

Sales Business

Sales Experience / Skills Required

Possibility of Retrenchment


Direct Selling = 100 Salespeople each sell $10,000

Network Marketing = 10,000 Volunteers each sell $100

(NOTE: Only a very small fraction of these Volunteers are brought in by YOU directly!)

This is achieved through Geometric Progression:

Many people doing a little bit


You get 3 people and each of them get 3 people.

It is not uncommon for this process to go on indefinitely (by people you do not know today, but who will be your business associates one day). To improve your cash pipeline, many people build deep (through their associates’ efforts) as well as wide (through their own efforts).


1st Level 2nd Level 3rd Level 4th level






In Network Marketing, you will get paid depending on how many levels are built by you and your team. The amount you are paid depends on your own effort as well as the company’s compensation plan.

. The above example assumes everyone will bring only 3 associates into the business. In real life, serious business builders will bring in many associates so as to maximize their earning power.



Characteristics of Network Marketing:

  • You Work for Yourself
  • But Not by Yourself.

. .

In Network Marketing:

  • Be Yourself
  • Build Relationships with People You Like
  • Keep Recommending Things You Like


and you will be a Success.

.I’ve built my success on this simple concept. You can too – Nancy Long.



© 2007 teamrich.wordpress,com – Network Marketing vs Direct Sales


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