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network marketing
compensation structure
pipe dream
downline
multi level marketing
ants
nutshell
different kinds
good reason
elephant
business opportunities
What Is The Difference Between Network Marketing And Network Building
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What Is The Difference Between Network Marketing And Network Building

I would like to discuss my understanding of the difference between network marketing and multi-level marketing. What I have found really is that these are different terms for the same thing. It is like the story of the ants that were trying to define the elephant. Each ant defined it according to its experience and swore that the other got it so wrong.

Over the years, I have been pitched different kinds of business opportunities from just about every corner of the globe selling different products...and I have fallen for them. Before you know it, you have to build your downline and this will help you make more money and on and on the story goes. You have heard one, you have heard them all. Here is the thing about multi-level marketing: it's almost always about getting people on to your team whose efforts you will leverage at level a to get, say 50% of what they bring in, then 25% of what their people will bring it at level b and on and on. It is a compensation structure. Unfortunately, there have been those who have gone about it the nasty way and sold people a pipe dream that never came to be. Long story short, most people do not want to hear about it again.

Network marketing, on the other hand, has a lot to do with building a network of people. It may be those who buy the products from you or those who are representatives or part of your downline. The crucial thing with these people is how you meet up with them, how you develop your relationship with them, how you keep your downline motivated to do more. In a nutshell, you have a network to market to. The problem, again, has to do with the different unsavory tricks that have been played on unsuspecting clients over the years. This has resulted into problems if you set up a meeting to share your opportunity or products. People are just not ready to be tricked again...and for a good reason: once beaten, twice shy.

This leads me to a phenomenon which has been growing faster than people can adopt: online marketing. With the growth of social media, it seems people are keen to know more about what you have to offer if you are trustworthy, knowledgeable and, if you have social proof. All these things can happen online without much fuss. A few articles or some Youtube videos showing off what you know about the product will do the trick...but you cannot afford to be anonymous and scam your way all over the place.

Network marketing or multilevel marketing is still very much alive...it just is happening differently. Home parties are still being done, conventional advertising is still happening and leads are being captured. The terminology may be changing but it is still the same thing that is being talked about. The companies produce the product and the independent distributors have to market them whether you call it multi-level marketing or network marketing.


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