The current decade is the time for enormous change in the fledgling direct sales industry. We are standing at a point in time when a revolution is imminent. Shouldn’t we get a better idea of what’s going on?
To begin, I don’t say I am the rulebook or the definition master. But for starters furnished below are basic explanations:
MLM: Multi-level marketing necessitates the movement of a physical product and pays out at various levels based on the total sales of a group of people. These tend to get pretty hefty once the group achieves a critical mass. Generally they operate on a ‘binary model’ but there are various strategies (matrices) designed by various companies to make their compensation models attractive.
Network Marketing adds leadership, empowerment and duplication to MLM. This makes it more of a b-quadrant operation with lesser focus on product sale and greater on learning and growth to follow a system. Network marketers therefore grow less fast compared with MLM but the organizations are more robust and profitable over the years. The binary model is generally not the norm in network marketing.
Private Networking is comparatively new and based on GPT or getting paid today. This makes it a direct sales opportunity in the true sense and like network marketing also incorporates envisioning, leadership and empowerment for residual incomes. As direct sales networks grow and subscribers remain active the residuals kick in.
These 3 means of direct sales are parallel to the traditional way of distribution through the distributor-store channel. Direct sales is now in the hands of individuals unlike earlier when companies trained their salespeople to do these specialized sales… of insurance, computers or carpets. This is what makes the empowerment exciting and the decade one to watch.
A common mistake is to confuse the network model with the business system. A system is a step-by-step methodology of operation and training and has nothing to do with the network development system set up by the manufacturer or service provider. A ‘business system ‘ is like a franchise you would take to develop your business in a paint-by-numbers fashion by following what works.
Thus without bothering about which direct sales opportunity you have, you can operate an MLM system to develop it in a methodical way.