Which words to use? Multi Level Marketing or Network Marketing?
It is amusing people got two names to use for this industry. But did you that one is different from the other? And the other should not be used as a replacement of the other?
Today, in this blog post, we are going to explain and hopefully clear out misconceptions.
What is Multi Level Marketing?
In our previous blog post here, we have explained what is Multi Level Marketing, why is it so popular, and why we consider it as a legitimate business model.
Today in this blog post, let us explain it once again, but this time, briefly.
Companies find it good to compensate its customers by giving them incentive to recommend the products to others. Instead of spending money on media advertising, MLM companies pay people to tell other people about products.
You recommend a product to your friends, you earn commission. Your friends recommend to their friends, you still earn commission, from 2nd level of referrals. Their friends recommend to their friends, you still earn commissions—from 3rd level of referrals.
Unlike ordinary referral marketing, in Multi Level Marketing, you get paid not only on your own referrals, but also from the referrals of your referrals.
Again, to the haters of MLM concept, my question is: What’s wrong with companies becoming more generous in paying commissions?
I asked this because, as we discuss these things here, I know there are a lot of haters out there frowning on this concept.
Now, What is Network Marketing?
If Multi Level Marketing explains how you can get paid (on multiple levels of referrals), network marketing on the other hand explains how a person involved in MLM are supposed to market the products.
From the words “network” and “marketing”.
Based on these words, you can draw an idea which goes like this: Marketing to your network.
We all have our own network of friends, right?
Bob Burg, in his underground best-selling book “Endless Referrals: Network Your Everyday Contacts Into Sales”, he explained how you can tap on your network of friends to make money in your chosen business.
If you are to promote a product or a business opportunity and you have limited money at hand, wouldn’t it be good if you approach your family and friends first? The strategy is free, and sometimes, effective.
Word-of-mouth advertising has been proven to deliver great results, especially if there’s an existing good relationship between the product recommender and the contacts.
So, network marketing, can also be “marketing to your network of friends”.
Proper Use of Words
We notice that a lot of people don’t usually understand the difference between these two set of words.
Some say Multi Level Marketing is the older description for our business, and Network Marketing is the newer description. Others say Network Marketing is being used today because it is the more popular term to use.
If we are to properly dissect things, like the way we did in the previous paragraphs…
…this is how we should use them correctly:
Multi Level Marketing describes the business model, how people are getting paid
Network Marketing describes how people are building their businesses (marketing to their network)
But whatever your preference, it really doesn’t matter.
The truth is, whichever set of words you use, your results will come only through actions—your hard work in promoting and introducing the thing to your target market.
And, no matter how hard we debate in here, no results will be produced unless we take action. We hope this is clear for every person involved in MLM business, and wanting to succeed.
What If You Do Not Want To Market To Your Network?
This case is common in MLM business. And this may also be one of the reasons why it got a lot of haters.
Most people, they are not born sellers or marketers. If a person is not used to doing something, and you push him to do the thing against his will, there will be resentment in the end.
Unfortunately, a lot of team leaders in MLM business don’t realize this.
What do you call that toy for kids that is rounded in shape like a ball, with holes of different shapes? Can you insert a triangular object to a circular whole? No, and no matter how hard you do, it won’t fit into that hole!
It’s the same with people and our different personalities. Not all people are the same, and not all are naturally talented for selling. So, how’s that with upline team leaders pushing all their members to act like sales people?
But one thing is for sure, almost all of us here want money. We all want to make money!
If you are that type of person who like the concept of getting paid big time but you do not like to market to your network, there’s an alternative for you:
Okay, before we get drifted away to the main topic, let’s seal this thing once and for all…
Multi Level Marketing or Network Marketing? Which one to use?
It depends on the situation. If you’re talking with someone and you’re discussing how does it work, how are people getting paid? We encourage you to use the term “Multi Level Marketing”.
Now, if what you guys are talking about is the manner how this business is being built, how easy or how hard this business is, then it would be good if you use the term “Network Marketing” (marketing to your network).
Okay, that’s it. If you find this explanation helpful, would you mind commenting below or sharing this on social media?
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