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| photo credit to remibadozi.com |
When you are looking for a business opportunity whether an online business or not, you would always encounter these, MLM or Network Marketing Opportunity. Many of you must have done research on what it is and some of you must have done it, still doing it or contemplating in doing it.
So, it is just as important to know if MLM or Network Marketing are just the same or not?
MLM known as Multi-Level Marketing is also known as “network marketing”. It is a legitimate business model that uses several ways of selling goods or services through independent distributors of the company such as referral program or direct selling methods. Independent distributors do not receive salary, they are compensated through commissions based on the sale of products coming from their own sales as well as from the sales of those independent distributors they have referred to the program and the team they are supporting.
But most people confuse MLM/Network Marketing with pyramid scheme. Legitimate MLM companies’ base their compensation on the amount of products sold and not on the mere act of recruiting. Selling the products or services should be main activity within an MLM company not just by making profit from recruiting distributors as a way to earn money.
MLM can also be known as direct selling, affiliate marketing or home based business franchising plans as it does entail several methods in different programs that would market its products and services effectively. As long as its focus is on distributing products or offerring services and not on recruiting people, the MLM company is a legit business.
