Forums

[monica odenwald Contribution Level: 3]

Hi Bob Proctor talked about the Direct Marketing Industry as being highly moral and ushering in the new economy.
He talked about how hard big businesses have it reaching you, without spending millions of dollars on advertising, internet, tv, radio and print.

He said that direct selling makes sense (trading cash for customers) and maybe will rid us of the SPAM from big businesses that Seth Godin seems to want to avenge, through us MLM's.

My question is: Is network marketing and MLM's included in this direct selling model? Or do they fall into another category of selling?

I would appreciate some clarity.

Monica

[Dave Kotecki Company: Life Force International Contribution Level: 5]

MLM IS direct selling.

At least I think it is.
Definitions are open to interpretation sometimes
and they seem to change over time.

[Eileen Burns Contribution Level: 3]

Hi Monica
Yes, network marketing is direct selling. Direct Marketing can be considered niche marketing. You target your audience and send them information through snail mail, internet and so forth.

Multi media touches are also utilized by successful network marketers. Not everyone in network marketing meets with people face to face. Not everyone writes a list for their grand opening. This is just practice to learn about your new industry and what to actually say to people.

Direct Marketing is a campaign where you do not necessarily know the recipients personally. However, they lie within demographics, income, own homes, makes x amount of money....to your specifications for the return on your investment.

[Warren Veach Company: State Continuing Education Contribution Level: 4]

Direct Selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location. These products and services are marketed to customers by independent salespeople. Depending on the company, the salespeople may be called distributors, representatives, consultants or various other titles. Products are sold primarily through in-home product demonstrations, parties and one-on-one selling.

[monica odenwald Contribution Level: 3]

Thank you so much for your clarity.
Call it my ego but I think when I introduce my business today to a client, I am going to introduce this profession as being in the direct sales industry.
Network Marketing always has some strange or "preconceived" notion attached to it that is often not fully understood as a business. Like that's not me, I could never do that...
I like how Jim Rohn talks about his business philosophy first. I think marketing that online might help reaching the niche market, before the pitch so to speak.
Thanks again for the excellent information from you all and good luck in your careers in this direct selling industry!
Monica

[Gale George Contribution Level: 1]

Monica:

The Direct Selling Association says the following about direct sales:

"About Direct Selling
What is direct selling?
Direct selling is defined as the sale of a consumer product or service, person-to-person, away from a fixed retail location. But there's more to the story than the simple sale of products. Find out more here.

Statistical Information
Did you know that more than 15 million people participated in direct selling in 2007 in the United States alone? Find out the hard numbers about many aspects of direct selling.

History of direct selling
The practice of selling direct dates back thousands of years. Find out about the roots of this important method of product distribution here.

Benefits of direct selling
Direct selling has benefits for company representatives and distributors as well as consumers. Find out what the benefits are for you.

Consumer Information
While there are hundreds of legitimate direct selling companies operating in the marketplace, there are, unfortunately, some unscrupulous people who will try to take advantage of unsuspecting victims. Find out how to identify and protect yourself from falling victim to pyramid and other fraudulent schemes.

Frequently asked questions
Do you have more questions about DSA or direct selling? Look here to find answers to some of the most popular questions.

Considering an opportunity?
All of us will likely have the opportunity at one time or another to take advantage of a direct selling opportunity. Find out what you should look for in an opportunity and the questions you should ask before signing up."

Many companies, that use mlm compensation models, are members of this well established organization.

Their website is http://www.dsa.org . You'll garner a substantial amount of information about direct sales, its history, as well as a complete member directory.

I'm sure that you'll find this site helpful in answering your questions about direct sales.

Gale George

[Evan Klassen Contribution Level: 1]

If you dig deeper, there is actually a difference between network marketing and direct sales.
In MLM, when each and every sale is made, all of the available profit from
those sales is shared between you and your “upline”. On the other hand, with the Direct Sales business model, when a sale is made, all of the available profit from that sale goes to one person and is not shared with an upline.

[monica odenwald Contribution Level: 3]

So Evan, are you saying then, technically speaking that if one is in a Network Marketing Company that they are NOT in the direct selling industry?

Monica

[Adam Taha Company: Amway Contribution Level: 7]

Interest Monica

Yes, in UK, we call MLM as direct selling. Also on Direct Association UK website, it talks about MLM

Here
http://www.dsa.org.uk/legislation.htm

quote from DSA website...
"Multilevel Marketing Many direct selling businesses are now organised on a MLM or network marketing basis, although they may use neither term in their promotional material.

The distinction between MLM and a conventional direct selling structure is the nature of the earnings opportunity offered to new direct sellers.

If a participant is offered an opportunity to both retail products and to receive additional rewards from the sales of others they may recruit into the business, then the business is likely to be MLM or Network Marketing and therefore subject to the Trading Schemes Regulations 1997. For further information and advice, consult one of the legal advisors to the DSA."

If you also look here, you see many companies on the DSA website mentioning most of MLM companies as members of Direct Selling Association..

http://www.dsa.org.uk/full_members.asp

Hope this comes of any help. You may have prospects also in UK, who knows, and might be of use to you if it comes up.

Adam

[Richard Bravo Company: Life Force International Contribution Level: 9]

.

The reality is they are the same.
Direct selling, mlm, network marketing, referral marketing.... give it a name - it's all the same.
The only reason why there are so many variations is simple...

People trying to avoid the truth of what it is they are involved with because they lack the deep
rooted belief that this business model will work, therefore sharing the same opinion of outsiders
who dislike the business model with no more validation than a silly label.

What it really boils down to Monica is this...
Ask yourself WHY you are looking for an alternative label for what it is you do?
Are you ashamed to be in network marketing?
Does your circle of influence hold you in less regard if you label it one or the other?
Do you think your marketing will be MORE effective using one label over the other? And why?

It appears to me that your dealing with an identity crisis in your business.
The problem with that, is your prospects are going to pick up on this from a mile away.
It will come through in your presentation as fake and lacking the confidence of someone
who knows EXACTLY what it is they are doing, proud of it and determined to succeed.

This debate is an old one, and in the years I've seen it argued, the ones that allow their business
to stall because of a petty detail like this - ultimately fail. For the sole reason, that they themselves
don't believe in what they are doing, therefore they fail to inspire others to do the same.

That may be hard to swallow. You may hold it against me. I'm ok with that.
I'd rather say it in hopes that it helps you, than stay quiet and watch you fail.

~richard