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?
It is not that I profess to be the rule maker or definition provider. I do however put across my ideas to structure this industry:
MLM or multi level marketing is one form of direct sales where the movement of goods and services generates income across various levels of a consumer network. Once the network gets large the incomes get pretty large. Typically they operate on a binary model or some matrix strategy that optimizes the compensation for members.
Network Marketing: Network Marketing uses the MLM model and builds atop it leadership, empowerment and duplication. It takes MLM into the B-quadrant at a personal level and as a B-quadrant business owner a network marketers focus is not as much on product sale as it is on empowering others to align with team structure, leadership principles and network building. Contrast to MLM this method earns money slowly but does surely (and hugely). Network marketing typically does not operate on a binary model.
Private Networking: A relatively new term, private networkers operate on the GPT concept of 'getting paid today '. This ensures quick returns through product sales and network building up to one or two tiers allows for subscription based continuing income. Like network marketing, private networking calls for vision sharing, leadership development and empowerment. But as monies accrue through individual product sales, rather than group product sales, returns are controllable by individual effort. And residual incomes are controllable by empowerment effort.
All three mechanisms are called direct sales because they bypass the conventional distribution channel of wholesalers and retailers. Corporates have used this model since ages for directly reaching consumers through sales people. Products like vacuum cleaners, safety gadgets, carpets and the works have moved this way. Now the same model is in the hands of the individual consumer not attached with any corporate. This gives them a power to earn unlike before and that is what will change everything soon.
People often make the mistake of mixing up the networking model with the business system. A system is a way of operation and training that ensures duplication. It is like a franchise that anyone can use to develop any direct sales opportunity whether it be an MLM, network marketing or private network.
So whatever your direct sales opportunity, you are at liberty to engage your business system.
For a home business system operated by the author, click here www.ArriveAtSuccess.com
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