The MLM Confusion – How Do I Know Which Model I Have – Affilate, Direct Sales or Multi-Level, or MLM for Short?



Read More: Sponsoring and Recruiting

Let first examine these three totally different models

1. Network Marketing

Or Multi-Level Marketing  (MLM) Is the practice of showing others how to create a business by introduce others to it. Another name for it is Relationship Marketing

This began in the early 50′s as a way to give people a feeling of belonging to the company. The big company we think of is Amway, but it actually began before. I won’t go through the evolution, but it started by actually sharing a product or a service, and then teaching others to do the same. These products generally are not owned by the person representing them. The main difference between affiliate and network marketing products is how you get paid. In MLM you can qualify during the month to get the commissions connected with a sale. In affiliate products the sale and qualification is immediate, and usually more simply defined.

2. Affiliate Marketing – Is recommending and promoting someone else’s product which you don’t own

This is anytime you agree to promote a product that you or someone else created. This also had its start earlier than the internet, but it really took off once the internet exploded. Just check click-bank you will find thousands of companies that depend on this as a means to create sales. The beauty of this type of product and sales, is an opportunity to create an immediate flow of income. Many people have been able to offer high quality products and services this way as both an independent business, and as a blend with MLM Network marketing.

3. Direct Sales – Pure retail sales offering a product that fills a particular need

Traditionally this is any product that is sold whether its a product in a supermarket, mall or one that is show to you by a Kirby salesman. It is how all product has been moved from the market place to our homes from the beginning of time.

How Do We Decide Which It Is That We Are Doing?

1. Systems can sell product

Just as the grocery store can promote their products on tv, so can we do that through the internet or direct presentation. This is a very good way to promote a product if done right.

2. Systems can promote an affiliation

One of the most famous affiliation is the Mike Dillard program. There are many others out there. There are many that have nothing to do with MLM. I am just examining how this will help in network marketing.

3. Systems can promote a network marketing company’s product or service

Many people have a website these days that give their customers and prospective distributors the ability to “shop” and compare. This is a good piece of that system that works.

Using This To Build Our Business

1. Network Marketing and Affiliate Marketing

  What is most important to note here, is to look at a system and decide whether it can be duplicatable. And what I mean is can any average guy make it work for them? Any system is only as good as its product, and that product is the system, and usually the affiliate program it contains. And why would you want to use a system? Because as I have found and many others have found, representing your product directly is inherent with a great deal of rejection. And many need to create cash flow right away. The affiliate system creates a funnel that allows you to build those relationships that are so key to network marketing.

2. Network Marketing and Direct Sales

The biggest argument to date right now is this one. Yes you have a product or service, and yes you must get it out into the market place. The problem is, when we just start talking about what we have is that we are “pitching” and most people get the “salesman” alert and even if they are still standing there, they have their arms folded and they are resisting you.

The thing that has to happen is that a relationship is built, a real effort to get to know that person, and to share a bit about yourself. We call it the “like and “trust” factor. Now if you had a new Dentist in town, how far would he get if he had a drill that was battery operated and he started walking up and down the mall, and stopped people everywhere so he could drill and charge them for it? That sounds funny, but many people will react the same way when we hit them with our presentation before first learning more about them.

Using a system to build rapport and the relationship?

A good system whether its on the internet or direct, must create that rapport and relationship. It must be a combination of real human contact and those famous auto-responders everyone loves to tout these days. While technology is wonderful, human contact is absolutely necessary.

How do I get myself a system?

What works for me and I recommend is called Better Web Builder. It is an affiliate program, that allows people to promote their product or service right along side the Better Web Builder Products, while creating a loyal list of people!

What I did was find an easy system that gave me the opportunity to talk with people without any rejection! I have a never ending flow of leads generated from an easy to use system, and it doesn’t break the bank! If that sound interesting to you then message me and we will set up a time to consult. Then we can decide if it will work for you and take you out of the dilemma you are presently dealing with.

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About the Author: Lynda Cromar

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Member Since: 12/19/2009

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