A Comparison between MLM
(Network Marketing) &
Direct Sales Approaches
There are several
different approaches to
launching a home-based
business online. The two
most prevalent are
called MLM (Multilevel
Marketing or Network
Marketing) and Direct
Sales. Both provide the
potential to make loads
of cash. There are basic
differences in the
approaches and
techniques utilized by
each. Let's take a
closer look:
MLM or multilevel
marketing is a method of
engaging in a home-based
business on the
Internet. There are
programs that you pay to
be a part of (normally a
nominal monthly fee of
around $40.00). Once you
join, the name of the
game is to promote the
same program. In other
words, you are trying to
get others to join the
same program that you
just joined for a
percentage of their
monthly dues paid. Here
is a quick list of facts
concerning MLM:
1) You join the program.
2) You are appointed a
sponsor somebody who has
been in the program
longer than you that can
help you learn the
ropes.
3) With the help of your
sponsor, you begin to
develop your skills of
online and off-line
advertising and
promotion.
4) As your promotion
techniques saturate the
Internet, you gain new
members for the program
that are placed under
you. This is known as
your downline.
5) Like your sponsor
that gets a percentage
of your monthly dues,
you now receive a
percentage of the
monthly dues of the each
member of your downline.
6) People love
enthusiasm and
positivity. If you
display such
characteristics via your
promotional techniques,
it is possible to grow a
massive downline. That
means that you would be
receiving a percentage
of a massive
accumulation of monthly
dues.
7) As long as the
members of your downline
continue to be a part of
the program, you receive
monthly income. This is
called residual income.
8) You receive a
percentage of your
downline's dues because
you referred them. Your
sponsor receives a
percentage of your
monthly dues because he
referred you. Your
sponsor also receives a
percentage of your
downline's monthly dues
(smaller than your
percentage), because
without him they may
have never been referred
by you. The organizers
of the program take the
rest of the money.
9) You now become the
sponsor for the members
of your downline. It is
your job to keep them
motivated and teach them
of the ropes of
promotion. That means
that you will also
receive a percentage of
that anybody who joins
the program under any
member of your downline
(your downline's
downline).
10) This process
duplicates itself
indefinitely. As the
program grows, so does
your residual income.
Now let's take a look at
the direct sales
approach:
1) There is no program
to join. Direct
marketing is a solo
venture.
2) The product or
products that you sell
are determined by you.
They can be physical or
electronic in nature.
3) You keep no
inventories. If the
product is electronic,
then you are simply
selling a URL for them
to have the electronic
rights to it.
4) If the product is
physical nature, you act
as a middleman and have
the product drop shipped
to them.
5) Methods of promotion
for direct sales
include:
-Pay-per-click
advertising campaigns
like on Google, Yahoo
and MSN
-Blogging
-Sending out newsletters
-Paying a service to
give you targeted leads
in the form of e-mail
addresses
6) You can also engage
in any number of offline
advertising methods to
promote your online
business.
Regardless of the method
of online marketing that
you choose to engage,
your home-based business
can make you loads of
cash. The best thing to
do is to increase your
education further. The
more you know, the more
valuable you become and
the easier it is to grow
your down-line and your
business. Now that you
have some knowledge to
go on, take it to the
next step. Through your
research, you will be
able to better discern
which course of action
is the best one for you.
Demetrios Tzortzis is
unlocking the potential
of new marketers to
succeed without the
initial "beginners"
slump.
Demetrios Tzortzis
720.339.3808
livetoprosper@gmail.com
http://www.YourFatPockets.com
http://www.YouTube.com/Dprosperityman
|
