Network Marketing vs Direct Sales
|Network Marketing||Direct Sales|
Franchise type of Business
Everyone helps you
No Experience / Skills Required
|Sales PeopleEmployeesFull TimeSales Quotas
No Residual Income
No Leverage Income
Business Not Transferable
Somebody Else’s 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.
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