Why Direct Sales Beats MLM Every Time by Pat Gras

There are several distinct advantages to being in a direct sales opportunity vs. a multi-level marketing opportunity. 

First one must know the difference between the two.  In direct sales, one profit from the sale of one product pays one person.  In MLM, one profit from the sale of one product is split numerous ways between the person making the sale and that person’s upline.

Immediately, you should be able to see the disadvantage of the MLM system.  When you make a sale, you only get a portion of that sale.  Therefore, in order to earn a significant income, you must build a downline of several hundred or even several thousand (depending on the profits and the compensation plan of the company) individuals each selling the company’s products. 

The order of the day here is duplication and if you can’t get your downline to duplicate your efforts, you might as well stand facing the wind and urinate on yourself because that is the reward you are going to get.  This is why the failure rate of MLM home businesses is something like 95%.

With a direct sales business model, you are primarily dependent on your own efforts to generate the bulk of your income.  If you get the sale made, you get the commission.  Period. 
 

Now, with that said, the best direct sales companies build duplication and residual income into their compensation packages to “sweeten the pot”, so to speak. 

In these instances, you get the best of both worlds.  You get the total profit from your own efforts and if you are a great team leader, you will also get some of the duplication efforts from your team and residual income as your team grows.

When you are looking at a network marketing opportunity, keep these two very distinct differences at the forefront and you will ensure that you find the best opportunity for you to reach your financial independence.

This entry was posted on 30. November 2008 at 16:35 and is filed under Home Businesses. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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