The MLM Confusion – How Do I Know Which Model I Have – Affilate‚ Direct Sales or Multi-Level‚ or MLM for Short?
Let first examine these three totally different models
1. Network Marketing
Or Multi-Level Marketing (MLM) Is the practice of showing others how to create a business by introduce others to it.
Another name for it is Relationship Marketing This began in the early 50’s as a way to give people a feeling of belonging to the company. The big company we think of is Amway‚ but it actually began before. I won’t go through the evolution‚ but it started by actually sharing a product or a service‚ and then teaching others to do the same.
2. Affiliate Marketing
Is recommending and promoting someone else’s product which you don’t own This is anytime you agree to promote a product that you didn’t create. This also had its start earlier than the internet‚ but it really took off once the internet exploded. Just check click-bank you will find thousands of companies that depend on this as a means to create sales.
3. Direct Sales — Pure retail sales offering a product that fills a particular need
Traditionally this is any product that is sold whether its a product in a supermarket‚ mall or one that is show to you by a Kirby salesman. It is how all product has been moved from the market place to our homes from the beginning of time.
How Do We Decide Which It Is That We Are Doing?
1. Systems can sell product
Just as the grocery store can promote their products on tv‚ so can we do that through the internet or direct presentation. This is a very good way to promote a product if done right.
2. Systems can promote an affiliation
One of the most famous affiliation is the Mike Dillard program. There are many others out there. There are many that have nothing to do with MLM. I am just examining how this will help in network marketing.
3. Systems can promote a network marketing company’s product or service
Many people have a website these days that give their customers and prospective distributors the ability to “shop” and compare. This is a good piece of that system that works.
Using This To Build Our Business
1. Network Marketing and Affiliate Marketing
I will use just one example the Mike Dillard version of “Network Marketing” does it work? Well it sure did for him but is it duplicatable. What I mean is can any average guy make it work for them? I have to say no‚ its a good product‚ and system‚ but what you are really doing is promoting
Mike Dillard‚ I have gotten the e-mails‚ they are from Mike‚ I never see the person who promoted it. I never hear about what MLM that person is promoting. There is never a relationship being built here‚ its all about getting me to buy the product they are promoting.
They call this Network marketing but it is really cleverly disguised affiliate selling. That is okay if that is what you want to do‚ but make sure you realize that is what it is.
2. Network Marketing and Direct Sales
The biggest argument to date right now is this one. Yes you have a product or service‚and yes you must get it out into the market place.
The problem is‚ when we just start talking about what we have is that we are “pitching”and most people get the “salesman” alert and even if they are still standing there‚ they have their arms folded and they are resisting you. The thing that has to happen is that a relationship is built‚ a real effort to get to know that person‚ and to share a bit about yourself.
We call it the “like and “trust” factor. Now if you had a new Dentist in town‚ how far would he get if he had a drill that was battery operated and he started walking up and down the mall‚and stopped people everywhere so he could drill and charge them for it? That sounds funny‚but many people will react the same way when we hit them with our presentation before first learning more about them.
Using a system to build rapport and the relationship?
A good system whether its on the internet or direct‚ must create that rapport and relationship. It must be a combination of real human contact and those famous auto-responders everyone loves to tout these days. While technology is wonderful‚ human contact is absolutely necessary.
To Your Abundant Success!!
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