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Seashell
Forums Member
Joined: 11 May 2008
Posts: 23
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#1 · Posted: 19 May 2008 15:22
Just curious if anyone can tell me the difference between direct sales and mlm ? I say they are one in the same.
I see quite a few people who crap on MLM in one sentence then talk about how they are in direct sales in the next.
Sell product all you want.. If the company offers you an overide for getting other people involved, its MLM.
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mountainmom5
Joined: 30 Aug 2007
Posts: 2205
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#2 · Posted: 19 May 2008 15:38
In direct sales you get paid directly by your client instead of it having to go thru the company...and filtered thru a number of people before you see your piece of it.
Usually in a direct sales marketing plan, there is a sale or two that gets passed up as trainer pay but then there is no more commission made off that person - so it isn't mlm as there are no multi levels...
There are pros and cons to both.
Both plans work - but there is a difference!
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pcwork
Forums Member
Joined: 12 Aug 2006
Posts: 1623
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#3 · Posted: 19 May 2008 20:41
In an MLM, you get paid for a sale made by a person in your downline
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Escalade
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#4 · Posted: 20 May 2008 15:03 · Edited by: Escalade
Direct sales tend to pay out a bigger percentage than MLM. Direct sales pay out instantly, therefore you can become wealthy with it sooner. On the other hand, in MLM, you get paid a small percentage on different levels. MLM takes a long time before you can make a fortune. Also, only the people way above you will mostly benefit for this compensation plan. To conclude, based on my personal experience, I wouldn't be involved in any MLM programs.
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annadenise
Forums Member
Joined: 9 Mar 2008
Posts: 300
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#5 · Posted: 20 May 2008 17:51
Not to muddy the waters, but there is also something called Cooperative Marketing where the company and business affiliate combine efforts. In a Cooperative Marketing model the company does all the advertising, obtains the customers, then the business affiliate can buy the customers. Therefore you are not doing direct selling, (other than if you also choose to promote it yourself) and it is not an MLM. I only know of one Cooperative Marketing model that has been successful because they also do all the follow up with the customers numerous times a year. To me, after being very involved for a few years now, this is the best of both worlds.
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