Network Marketing Or Direct Sales?

It’s a good question and one which should be discussed if you are in this industry. Traditionally network marketing or multi level marketing was the home based business of choice in America. Working hard for a few years, building a thriving organization and ultimately retiring with a massive residual income check was the true American dream. A lot of people did very well from network marketing becoming millionaires due to strong passive income. Over time though in some circles network marketing stated to get a bad name because of businesses going bust, because of compensation plans being changed, etc. All in all though, network marketing is a fantastic industry where life long friendships are made and great money is earned when teams are built.

Direct sales on the other hand is not as dependent on building a thriving down-line. With direct sales and high ticket direct sales, the seller get far more upfront commissions than in a network marketing pay plan. However with Direct sales, one needs to keep selling to get paid. Even though the commissions will be far higher per sale, the seller must continue to find buyers for the products he or she is marketing. In network marketing however, even if you make no personal sales this month, you may still receive a fat passive income cheque due to the strength of your teams effort.

Other points to consider is with direct sales especially if you are marketing a high ticket item, you can get your business to $20k Per month rather quickly if you have learned some good marketing skills. However with network marketing it may take quite a number of years to get your passive income to $20k per month as most of the products the network marketing companies sell are low priced products usually under $150 per month. Also with network marketing, I believe its foolish to think that once you have your team built and decide to retire, that they will send you cheques for life (like they promise) and they also say that you can even will your residual income to your grandchildren etc. This never happens unless in very rare occasions

So there you have it. Both multi level marketing & Direct Sales have their advantages and disadvantages. Whatever option you decide or are in, just make sure you are with a good company. They both work. Try to make as much as you can as quickly as you can. The last bid advantage I would see with direct sales companies is that normally the sale is between the buyer and the seller. The direct sales company is not involved. They are just there to provide the product but the money side of things lies between the buyer and the seller. This is good as it gives you the business owner more control. What you have less control over is with a multi level marketing company who receives all the commissions into their coffers every month and then decide how they want to pay it out. Here you are more at the mercy of your primary company as they hold all the cards. Just be careful of this.

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