Network Marketing, MLM, or Direct Sales?

If you’re looking for a home business opportunity, think about what you really want to do. How do you feel comfortable making money?

Network marketing, MLM, and direct sales are considered by some to be pretty much the same thing. However, there are some differences worth considering.

First, network marketing and MLM are essentially the same. Sometime you’ll see a precise definition of each that notes some differences, but in common usage today they are interchangeable. In this type of opportunity, you are paid not only on your own efforts, but on the efforts of people you sponsor as well. Your earnings can extend down through several levels of distributors in your group.

In direct sales, you are paid mostly for selling products at retail. There are many home party plans that are basically direct sales opportunities. You can recruit other direct sellers under you in these opportunities, but the money payouts are usually less. Many times the incentive to recruit others is to win prizes and incentives in the form of products or services, as opposed to building an ongoing income stream.

Bear in mind that there are various combinations of these plans. There are home party plan type opportunities that have true network marketing compensation plans. The key to making sense of all this is deciding what you want to do.

If you enjoy selling products that appeal to you, but dislike the idea of recruiting and sponsoring, stick with direct sales. You won’t have opportunity to develop a long-term residual income this way, but you’ll typically make a higher percentage on retail product sales than in a network marketing or MLM plan. The main drawback is that when you stop selling or having parties, your income stops.

If you want to build a residual income that allows you to take some time off and still have income coming in, then network marketing or MLM is your best bet. What you earn is based on your efforts plus your group’s effort, so your income doesn’t depend just on what you personally do.

In all cases, go over exactly what it takes to build your chosen business before you sign up. Be sure you will feel comfortable doing the things necessary for success. If you don’t like inviting people to in-home gatherings, avoid party plan opportunities. If talking to people about your business isn’t your cup of tea, network marketing and MLM might not be right for you.

There are good choices out there – do your research and most of all enjoy your chosen business!