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Old 02-06-2014, 09:18 AM
robynec's Avatar
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Default Direct Sales OR MLM?

First I'd like to apologize if this has already been ask(I'm sure it has) but I was not able to locate the thread if it was soooo ,

Quick Question to everyone.....
I am curious as to what the pros and cons are to both industries....
So, which do you prefer and why??
Party Plan Direct Sales companies OR MLM (Mulit-Level Marketing) ?

Thanks In Advance~
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Old 02-11-2014, 08:50 AM
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this is just my opinion... but everything is a MLM....

for example:
You go to buy a car, the car salesman gets some $, the manager gets some $, the car dealership gets some $, and the manufacturer gets some $.

I think it's just sales... it doesn't matter what your buying several people are getting paid... I do think that Direct sell is more work, than an MLM would be in some ways... but finding a legit MLM to work with might be difficult.

What are your concerns? Maybe that would make it easier to figure out...
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Old 02-11-2014, 09:55 AM
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Default Direct Sales vs. Network Marketing a Product

Robyn,

This is something I've been thinking about a lot lately too. I had recently considered working with a home party company (jewelry), but here's the catch - if you don't have party, you don't make money! Now, if you work with a consumable party sales company (food related perhaps), you MAY get repeat orders, and therefore money coming in somewhat regularly without parties. But not as much as if you have a party every week. To me - being in direct sales means that you bought yourself a JOB in sales. (Now, don't slam me all you DS gals - this IS my opinion!) If you get sick or have family issues, and can't have a party, where does your income go?

On the other hand, I love the idea of network marketing product sales, as you sell a great product once and your customers order the product monthly. This creates that residual income that is the goal of most entrepreneurial people I know. (Plus, for me, the extra bonus is that I'm not running out to parties every week, taking time away from my family, and not having to drive in the lovely blizzards we've been having at this time of the year!) The challenge here is finding the right product, learning to market it, and once your warm market has dried up - getting leads.

With either choice, you need to have a receptive warm market and a way to get new prospects every month. You just need to decide which one works the best for you.

Those are the major pros/cons for me. I hope my view was helpful.

Sincerely, Lori in NY
;-)
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Old 02-11-2014, 10:42 AM
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The distinction between MLM and Direct Sales is really the compensation plan. MLM's pay you on multiple levels as you grow your team (hence the name Multi-Level Marketing), but many MLM companies are still considered Direct Sales companies. Even many of the companies that call themselves Direct Sales have multi-level compensation plans, including the ones that are home party plans since you do get paid on people you bring into your team. If you look at DirectingSellingNews.com's Global 100 List, you will see many MLM companies listed, like Amway, Organo Gold, Visalus, etc.
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Old 02-11-2014, 12:41 PM
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Mikayla, you are absolutely right! With most of the companies on here, there is a payout on multiple levels. There are some companies that say they aren't MLM or NWM, but they really are - just look at their pay plan!

In any company, there are personal use or personal sales quotas you must meet to get paid a downline commission every month. It's just something to keep in mind - can I sell or use that $ amount of product every month to get paid? Of course this doesn't apply if you aren't building a downline yet. Also, be aware that many companies have an increasing personal use quota the farther in rank you advance.
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Old 02-13-2014, 05:45 PM
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I agree that they are pretty much one in the same. However, I am with 2 companies. One, I consider more Direct Sales and I am happy and content with my commission on my sales and have no team under me. I do home parties, portable parties, online events .. and I am in love with the products. The other is more MLM, I buy at wholesale pricing when I want to and can do flea markets, gun shows, events .. etc, but my focus is recruiting and my team for my residual income. I honestly like having one of each!
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