Differences between Multilevel Marketing & Network Marketing

As companies all over the world look for ways to market their products to consumers as cheaply as possible, network and multi-level marketing are fast becoming the buzzwords of the industry. In many cases, these two words are being used interchangeably. In an attempt to avoid the rather tarnished reputation it has had bestowed on it, many multi-level marketers are in fact now calling themselves network marketers. Originally, however, these two titles had very different meanings. Before you decide which business opportunity you'd like to pursue, it's important that you understand the differences and the similarities. Although multi-level marketing is often a used in network marketing, it is actually a completely different concept. When most people mention the term multi-level marketing, the company that immediately comes to mind is Amway.

Multi-level marketers make their money by introducing others into their programs as distributors. They are then paid a commission on the revenue that the person they introduced brings in. This continues as more and more people are added to the downline. Successful multi-level marketers are making money off of other people's work. The idea is that as you continue to recruit new people into the organization, you move yourself up from a worker bee to management. Rather than actually selling any product, you're responsible for additional recruiting, training and motivation for your team as it grows. In many multi-level marketing programs, commissions are paid way down the line so the more people you and your team bring on, the better.

Network marketing on the other hand, actually has a much wider scope. As mentioned above, it can include multi-level marketing but also has many other facets. Network marketing is quite simply using your relationships to sell a product or service. Most of us do a little network marketing every day. The difference is that we don't really know that's what we're doing and we're not actually getting paid for it. Let's say you saw a great movie and recommended it to all your friends, you are doing network marketing for the theatre and the Film Company that produced the movie.

The same goes for a favorite restaurant; article of clothing, favorite album or a good book you just read. Herein lies the difference between network marketing and multi-level marketing. Network marketing does not have to be multi-level nor does it have to include building a downline. The most successful network marketers today are simply using their relationships to encourage others to purchase specific products. The most prevalent network marketing is happening on the Internet. As companies like Amazon.com introduce affiliate programs that allow network marketers to display and sell their products on their websites, the number of sites being designed simply for this purpose continue to grow by the thousands every day. Originally offered as a way for webmasters to generate additional revenue for their sites, it's actually become the reason for the site. The difference between this type of network marketing and the kind you're doing when you send someone to the bakery you just visited is that in this case, you're getting paid. Some network marketers, as a matter of fact, are getting paid extremely well.

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