Tuesday, March 3, 2009

What is Network Marketing and MLM? Part 2

Network Marketing, like I said in the previous post, refers to the way the marketing is made in this business model. By marketing through a network of people you can sell your Company’s products or services.

Now you have to get paid for your efforts. This is where MLM, or Multi Level Marketing comes in the figure. It refers to the way you are paid, which is in multiple levels of marketing. This is because you not only sell products but the business opportunity thus building an organization of associates or distributors.

Your associates are going to do the same: sell products and the business opportunity. They build an organization too so this creates multiple levels, according to the Compensation Plan. Every time you make a sale, you get paid. And every time someone in your organization makes a sale, you benefit too. As your organization grows, your income potential does too.

There are different Compensation Plans and every Network Marketing Company chooses one to compensate their consultants. Usually they come with other ways to make money like bonuses or contests.

In sum, Network Marketing and MLM can be used indistinctively. The first refers to the way the products or services you offer are going to be marketed and ultimately, sold: through a network of people. The second refers to the way you are going to be paid: in multiple levels of compensation according to the sales you and your organization make.

We are successful Network Marketing Moms!

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