A closer look between Direct selling & Network marketing

---

Marketing holds an inevitable source of power in product selling business and there are many futuristic methods that let sales rocket up in high volume.
Direct selling and network marketing are two forms of marketing approaches. In the first case, the distributor earns revenue for independent marketing ability while in network marketing, one earns for the team effort.
Direct selling is a marketing approach that concerns about selling the product to customers via a representative or a distributor from the concerned direct selling organization directly. Usually, the commission earned for independent sales is the only revenue of a distributor.
The marketing and selling of products are managed through a dedicated MLM software system. A distributor prefer various methods to make sales like, With the above methods, revenue can be increased to reach a better value.
These representatives or sales consultants are solely responsible for product sales and they can be tagged as “self-employed” status. The tax which the consultant obliged to pay is done by their own efforts, and the organization is not responsible for those matters.
Moving onto the next side, network marketing is more a referral system where distributors earn a commission for not just their independent sales but also for the sales made by their team. It’s a combined effort and the revenue earned might be more or less depending upon the activeness of your group.
Sales from downline members will also be taken into consideration while calculating the commissions of the distributors. Building a network alongside sales is what network marketing stresses out for if it’s just about referring more people and getting paid will fall under “pyramid schemes”.
Earning commissions might be calculated based on achieving a certain volume of sales or referrals or ranks. It depends on the organization and the criterion is chosen by them.
Not everyone is aware of the difference between direct selling and network marketing, not even network marketers in the industry. Awareness has to bring in and let’s see the difference between the two.
The major differences between the two includes, Well, there are other sorts of drawbacks too that can pull you out of network marketing and get back to direct selling business.   Direct selling Network marketing Independent sales are the only revenue earned in this marketing model Revenue earned depends upon the distributor contribution of the network Commissions are not shared among other distributors Commissions are shared with upline member line-up Independent from other distributors Depends on other distributors Self-motivation and no team exist to control Sponsor needs to give motivation to the team and lead them for best performance and result No referring model system is followed Member referring is a part of a distributor network expansion Revenue-based on sales only Revenue is generated based on sales and member recruitment Not many compensation plans to choose Many compensation plans are available for the organization  Only individual targets to achieve All members have to achieve the target for achieving deserved income Not best for long-term income goals Best for long-term income goals Global expansion is not easy Global network expansion is possible No sponsor bonus or commissions are received for distributors Sponsor bonus and other sorts of commissions are available for recruiting new members Initial joining to the organization doesn’t cost high Initial joining packages might be expensive depending upon the organization   Apart from that, there are many similarities between these two marketing approaches like, At present every direct selling company has opted MLM or network marketing as a business model or progressively chooses the path.
More and more people are attracted to the plan and the network keeps growing on and on. However, these two sides are connected to each other.
Many have chosen network marketing as a secondary source of income alongside primary jobs. Well, never get confused with that of pyramid selling.
It’s important to understand the difference between direct selling and network marketing model. For more details, it’s best to understand all the other necessary terms involved with the industry like direct marketing, pyramid selling, etc.
One must be aware of the legal side before kick starts his own product selling business.    We personally recommend you to research more about the product selling business, and understand in-depth by bringing together all the elements necessary to market a product and reach the customers. Source: Free Articles from ArticlesFactory.com Dhanesh Haridas has 10+ years of experience in management, design, and deployment of enterprise technology solutions.
He is the CTA at Epixel MLM Software, a leading software development company..