The Right Definition of Network Marketing

October 15, 2015 Shomari No comments exist

What is Network Marketing

In case you haven’t seen my disclaimer, the “right way” is a relevant term. Many times you hear people say, “there is no right or wrong way…” Pardon, but yes there is.

Believe it or not, there is a right and wrong definition of Network Marketing as well! The term is used synonymously with Direct Sales as if they are one and the same. The truth is, they are not.  Almost every expert and guru makes this mistake, innocently enough. Because that’s the way it’s been taught for decades!

Here is the real deal…

First, there is no such thing as a “Network Marketing Industry”. But isn’t that what everyone calls it, even Million Dollar earners? Surely they must know what they are talking about! Well, since when does making a million dollars make something true? They are actually talking about the Direct Sales Industry.

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. The Direct Sales industry began much longer than 50 years ago. It started back when people started selling wares and potions away from tents and brick and mortar locations. Peddlers are a good example of first Direct Sales people.

When companies like Amway came along, the sellers sought organization, representation and leadership. Thus, the Direct Selling Association (DSA) was formed. When Direct Selling began to catch on in countries other than the U.S., the World Federation of Direct Selling Associations (WFDSA) was formed.

So where does Network Marketing come in?

According to the DSA, Network Marketing or Multilevel Marketing (MLM) is a method of distribution.

“In a multilevel distribution model products are distributed from one level of distributor to another and compensation is based not only on one’s own product sales, but on the product sales of one’s down line.”

Does that sound like an industry or a system, a method of distribution? That’s exactly what it is. Nothing more. Companies like Avon, Herbalife, Nu Skin, etc. are Direct Sales companies that do what? They use Network Marketing as a method of distribution through it’s sales force.

And here’s the final thing. They use Network Marketing but, they are still Direct Sales companies that still do Direct Sales! Every sale made to a customer is a direct sale. We’ll talk more about that in another article. In the meantime, check the links below and read about the industry for yourself.

I hope this post was informative.  Any questions or comments? See below. Take care and all the best to you!

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