MLM Tips: What’s the Difference Between Direct Selling, MLM and Network Marketing?

If you’ve been looking to leverage the very best business techniques, tactics, and strategies available today, you’ve probably stumbled upon the concepts of direct selling, MLM, and network marketing.

And while each and every one of these specific strategies share a number of commonalities, the truth of the matter is that you need to make sure that you’re using the right strategy, tools, and tactics at the right time to provide you with the right results.

This is more challenging than it appears on the surface.

Hopefully, after we break down all of this inside information below you’re able to better understand what each of these specific solutions brings to the table, and are easily able to implement them into your business to make the register ring. After all, that’s our intention.

What’s the difference between Direct Selling, MLM and Network Marketing

Direct selling is tested advertising and marketing

Though you’ll probably hear any different number of definitions about direct selling and direct marketing, the truth of the matter is that the big difference between this specific focus of selling and marketing is that it is based on results and results only.

This has absolutely nothing whatsoever to do with all of those ads you see on television or hear on the radio, but instead has much more to do with what most of us would consider being junk mail or spam.

Those marketing and advertising pieces are carefully measured for their response rate (the number of customers they create as opposed to the amount of money that they cost to run) and are the only effective way to know whether your marketing or advertising is working.

Why Do Masses Think That MLM Network Marketing is a Pyramid Scheme

MLM (Multi-Level Marketing) is all about tapping into the leverage of other people’s effort

MLM marketing (also known as multilevel marketing) is all about trying to get other people to do work for you while capitalizing on their effort and reaping financial rewards.

Now before you start to think that this is just some form of conning other people to do the heavy lifting while you sit back and collect silly amounts of money, understand that nothing could be further from the truth.

MLM marketing is about recruiting people into what is known as a “downline”, getting them to sell products or services for you while you take a commission from their sale. They’ll be able to do the same thing beneath them, in the pyramid continues to grow until you have brought in just as many prospects and marketers as humanly possible. It’s a great way to explode your income without doing when a hundred and 60 hours of work each week.

Network marketing

Network marketing is shockingly similar to MLM, but here you’re trying to focus on building a network that allows you to promote your information, marketing, and advertising in return for doing the exact same thing.

Tapping into network marketing is much like creating affiliates or joint ventures (except for the fact that you’re all mutually benefiting from the same sources of traffic) and again is all about leveraging your time and effort as much as humanly possible.

All of these different business methods and strategies have their own specific pros and cons, and you have to find how the pieces of the puzzle fit in your specific business.

Now it’s your turn!

Do you prefer Direct Selling over MLM Network Marketing or vice versa?  Please leave your feedback in the comments section and I look forward to reading them!

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14 responses to “MLM Tips: What’s the Difference Between Direct Selling, MLM and Network Marketing?”

  1. Marika says:

    I’ve always been a bit ambivalent about MLM, from the early years when someone drew me in to sell to friends Herbalife and got burned bad. Never touched this stuff since. Just a side story – I love using essential oil (for aromatherapy). and even though I know dOterra has some great stuff there, I avoid buying the oils because I know it’s an MLM company.
    Hm, maybe I should revisit MLM once again, maybe I can see it with different eyes this time.

    Direct selling, on the other hand is something else entirely for me. I always associate it with names like Ogilvy, Drayton Bird, Caples, even Cialdini, all those great names that made direct selling what it is today.

    Network marketing – hm, never quite knew what it all represents, so thanks for the great info about it.

    • Nate Leung says:

      Hi Marika,

      Thank you for stopping by the site. It’s always nice to see a new visitor. 🙂

      Yes, I can understand where you are coming from. MLM and Network Marketing as a whole is often misunderstood by the masses. I don’t blame you because of what type of information is being put out there. Many people like yourself had either, good, bad or neutral experiences.

      In a short summary, I would say to look at the industry in a different light. Take your beliefs and perspective out of the picture and look at it from a business standpoint.

      Provided that you have your own beliefs about MLM, and the way that MLM and Network Marketing is done right is all about providing solutions and being a problem solver. It’s not about selling, recruiting or signing up a bunch of people. That’s what it ultimately boils down to. In terms of the products you see out there, just because it’s from MLM doesn’t mean it’s a bad product. In fact, believe it or not, MLM products are better quality than the ones you see in the stores and I’m not being biased because I’m part of the industry. If you look at it from a standpoint of the owners of the company that is taking something that is ‘revolutionary” and marketing a solution through word of mouth.

      Would love to have you back here soon. Thanks for the comments Marika! 🙂

  2. Lotta Wanner says:

    This is a very good post! I really need to get my eyes opened to this. Thank you for making it so easy to understand. Your site is also very informative and looks very good! 🙂

    • Nate Leung says:

      Hi Lotta,

      It’s always nice to see a new visitor. Yes, thank you so much for the kind words! Hope to see you around here soon. 🙂

  3. Glori Surban says:

    Hi Nate!

    Great post!

    The differences between the three concepts has always been a question asked, even by some of my potential clients, who claim to be network marketers.

    • Nate Leung says:

      Hi Glori,

      Hope these tips clarified that for you. Thank you for stopping by. 🙂

  4. Leo Deleon says:

    to be honest, I didn’t think there were any difference! And now I stand corrected, 🙂 – Hey Nate great post as always, you rock!

  5. I like the breakdown Nate. I am into all 3; I see benefits in each. MLM is an attractive model, as is direct selling, and without networking marketing you are pretty much doomed. Thanks buddy!

  6. pam schmidt says:

    I’m also a person who kinda knew all the differences between these 3. But your description helps me understand the differences on a deeper level. I like network marketing because there is mutual benefit to myself and the other person.

    • Nate Leung says:

      I agree! I like Network Marketing as well because of the leverage factor. Thanks Pam!

  7. Hey Nate,

    This was a great break down on the differences of these 3.. To be honest with you, I thought all of them were pretty much the same, but now I have an understanding of the differences. Thanks for sharing!

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