Direct Selling Versus Muli-Level Marketing – Which Type Will Fit Best For You?

First let me explain the difference between direct selling and multi-level marketing.

Direct Selling Companies

These are know as “seller-based” because they give more income to the distributor for a retail sale.

The products are usually higher-ticket, one-time sale items. Additionally, there is little or no actual residual income from these direct sales companies.

Multi-Level Companies

These companies typically offer reasonably priced products that people consume and reorder.

A distributor typically earns less money up-front with these consumable products, but the long-term potential of reorders year after year can be substantial.

Now you have to choose a Network Marketing company with a product or service you like – A LOT. The most successful people in Network Marketing are people who LOVE their product and or service.

How will you choose a Network Marketing company? Here is a checklist that will help you.

1. What is the product or service?

You’ll be talking about it extensively, so you need to be proud and excited to tell the story. You’ll also need to be a “product of your product or service,” which means you use it in your daily life and understand it first hand.

2. Does it have integrity?

Check out the company, people and products and or services. Do they do what they say? Without their integrity behind you, you will not be successful.

3. Is the company “Distributor-Driven?”

In other words, does it function for the benefit of the people who distribute its products or services? Distributors are the profit centers of a direct selling or network marketing company. They should be fairly paid.

4. Does it have good management?

As in any business, excellent management can mean the difference between success and failure.If the CEO is not experienced in the industry, make sure he or she is surrounded by people who are! ALWAYS LOOK FOR INTEGRITY! Loyalty – and success – come from people helping people to build prosperous organizations.

5. Does it have a duplicable business system?

Most companies leave this up to the distributors – allowing them the “freedom” to do their own thing. A few companies consider this irresponsible at best and a recipe for failure on average. Look for a company that publishes a video or booklet describing the steps you’ll need to take to be successful. This is a company that recognizes that your success is their success, and they’re doing something to ensure it.

6. Does it have a fair, just and JUICY compensation Plan?

t would be wise for you to find a mentor who can help you determine whether the compensation plan is a good and balanced one.
Here are a few pitfalls to avoid:
- Some plans can take away people that you have brought in.
- Some plans are top-heavy; they reward people who are already earning the most, or who have been in the longest, at the expense of the new people.
- Some companies change their plans often. This is disruptive and usually not in the best interest of distributors.
- Some companies have challenges as they grow. Learning from these challenges is great, but some companies never learn.
- Some companies lead people on with rewards like cruises and prizes. Look for companies that reward with compensation – that you can use as you choose!
- Some companies make wild claims about the big money you can make quickly. Don’t buy it!

Whenever you see a successful business someone once made a courageous decision, so when will you make yours? Even if you do choose a Direct Selling or Multi-Level Marketing company that’s not perfect, make sure you come out of it better, smarter, more able and more capable than when you went in.

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