Thursday, June 10, 2010

Direct Selling (DS) Business vs Multi Level Marketing (MLM)

I am sometimes asked if my business is an MLM. There seems to be confusion between MLM, Network Marketing, and Direct Selling. I won't even bring up Pyramid Scheme because it's illegal, and there are many sources on the internet where you can read about it.

Let's start with Network Marketing. For some reason, some people use the term "Network Marketing" to mean MLM. I'm not sure why. As a business owner, I do network marketing when I make services and products available to the people I know. It's like word of mouth marketing (you give your friend a compliment, and they happily provide you with the info so you can get/experience/buy the same thing. The communication between the product or service source, your friend, and you are network marketing in action.) In my opinion, if you're not doing network marketing, you're going to have a very difficult time helping others and growing your business.

As for Direct Selling vs Multi Level Marketing, there are many similarities and some distinct differences.

Here's some info I distilled from a website I was reading earlier today:

Both DS and MLM have independent representatives (consultants) that offer products or services directly to the customer. DS gives a higher percentage of commission to the consultant, and a small percentage to their "upline" (the sales management that may be supervising their work).

"If you want to build a long-term residual income, you should consider Multi-Level Marketing. MLM distributors must still sell their product, but the sales process usually begins with their “warm” market of friends and relatives. Retail commissions offered by MLM companies are usually much lower since more of the available commissions are directed toward bonuses paid to various upline management people in the sponsor tree. In turn, you can also sponsor a downline of distributors that not only sell but also consume products making them your customers as well."

I like the DS model because it keeps me focused on spreading the word about Tomboy Tools. ALL women need to know about these home improvement tools. I have yet to discover an MLM company with a consumable product that I'd be prepared to convert people into 'lifelong consumers'.

If you're interested in the Tomboy Tools business opportunity, as a direct selling independent consultant, let me know. The career plan is simple and straight-forward, you learn while you earn, and receive 'active' status commission from day 1. Visit my website at www DOT toolpartiesbykaren DOT com for more details.

If opportunity doesn't knock, BUILD A DOOR!
Tomboy Karen

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