Thursday, May 27, 2010

Why Direct Sales Will Take You Further Than MLM

Picture found in a San Luis Obispo store

Guest post by
Arthur Georges

There are some people who will try to sell you on the idea that there is little difference between a direct selling opportunity and an MLM opportunity. Nothing could be further from the truth, however. Here are some differences between the two opportunities so that you can evaluate them and make your own, informed decision about the best path for your life.

Product Quality: Direct sales companies tend to market higher-ticket items. They're normally going to be one time sales to a hot market-that is, people want and need the things that are being sold. You'll be looking at durable items, things that are valuable to the consumer. In a MLM scheme, the products are often lower quality, lower ticket items. They may speak to some manner of demand, like the health supplement craze does, but it's telling that MLM participants are sent after their family and friends-their so-called warm market-before they're sent anywhere else. A truly good product does not require a sympathy purchase from your Uncle John.

Payment Structure: In direct selling the payment structure supports being paid directly for your personal sales. It is true that there are sales managers when you do direct selling, and it's true that you might even end up one. It's even true that some direct selling opportunities make finding other reps part of the prerequisite for being a sales manager. However, the sales manager makes a far smaller percentage of the sale than the actual rep does in a direct selling business-just as in any business. The sales manager's rewards come in motivating each member of the team to do well enough for him to make a living off of, while the sales rep makes the living from the sales. In MLM, the sponsor will always make most of the money, and the sponsor's sponsor will make even more. The person who did the actual sale actually gets the crumbs that are left over.

Focus: MLM's tend to collapse under their own weight as soon as each representative realizes the money is to be made in the recruiting. If only people with downlines make money then it makes more sense to focus on building a downline than it does to sell products. That means that very few actual products get sold, and very little money is getting made. Direct sales opportunities are stable. You can work for ten years as a representative without ever touching management and still make good money as a direct marketer.

Top Tier direct marketers embrace the cutting edge of the internet to do even more than traditional direct marketers can. The best success of all can be found with a company like this. A little research will help you find them so that you can begin enjoying the opportunities and lifestyle they ultimately offer.

Arthur Georges is the founder of Home Business Australia. Learn more at

Greg Cryns
Scentsy wickless candles consultant

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