What Is The Difference Between Network Marketing And MLM ?

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Published: 06th January 2011
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When researching home business opportunities and ways to make money, you will consistently come across one business model. You will see this referred to as mlm or network marketing.

This brings up the question of whether there is a difference between network marketing and mlm opportunities? MLM is short for multi-level marketing. This business model has been around for over 50 years. The co-founders of Amway are credited with starting multilevel marketing.

The concept is that you get paid on several levels of business partners underneath you. This is what multi-level means.

Over the years this carried the negative reference of being a pyramid scheme. In reality honest MLM companies are not pyramid schemes.

This is true for a couple of reasons.

1. You can make more money than the person above you. 2. You can climb through the various ranks and achieve a higher position than the person above you.

In a true pyramid scheme the person at the top of the pyramid would be the one making the most money. Because there are numerous examples of people climbing to the top of the company they are in no matter how late they started this is not true in MLM companies.

Several years ago mlm opportunities began to be referred to as network marketing. This phrase started to offset the negative meaning multi-level marketing had developed.

This is actually a better way to describe this business model because so much of your success is built on networking and relationship building. Even for Internet marketers who primarily use the Internet, social networking has became a big part of growing an online business using network marketing.

That is not the only change that has happened in this industry. Almost every MLM company has an online presence.

This makes it much easier to build a business faster, because all of your retail sales and sponsoring can be done on the Internet. You can use the Internet to sort through prospects and develop new leads for your business as well.

Network marketing companies now provide websites and marketing materials that you can begin promoting immediately. They also handle all product shipments and send out commissions to your downline as well.

You can also be in more than one mlm business at once. This was not possible before.

However, it's not unusual for successful network marketers to be promoting more than one opportunity at a time. This really makes it possible for you to create residual income in more than one way.

It is also smart for you to join an MLM company that you have a need for a product in. This way you can purchase products from yourself as well as develop customers to help generate income in that niche.

In summary, when we look at whether there is a difference between MLM and network marketing, the answer is yes. The business model is the same, but the opportunities are greater today.


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