Non MLM Business Vs MLM Business
June 12th, 2010 | 
Author: Non MLM Business Vs MLM Business
A question we get asked from time to time is So what is the difference between: MLM home business non MLM business opportunity and network marketing
First of all anytime you have an online business or a product or service that you are marketing via a network of people it is network marketing it is simply moving a product or service through a network of people whether they are distributors other team members or customers…
There are by far more mlm or traditional network marketing businesses floating around but if you are looking for a way to create financial success within your first year you may be looking for a non mlm business opportunity…
Typically what happens in a traditional mlm marketing plan is to get your team or downline built and start making a residual income off their monthly autoship which is the way most mlm companies move their products…In order for everyone to get paid product must be moved!
With an mlm opportunity you are dependant on the efforts of your downline and whether or not they stay on the monthly autoship will determine the size of your check…which gets sent to you by the company. So you do want to read the policies and procedures of the mlm companies and do your research on their reputability…it is best to find one that has been in business for a couple years…
In a non mlm business opportunity usually what happens is you pass up part or all of your first or first two sales to your mentor in compensation for training you and after that the profits are all yours. Some call it the Aussie1Up or Aussie2Up.
So in reality with a non mlm marketing plan you get paid on your efforts and how well you train your team. Once you have your ‘training sales’ done every person that joins your team will now owe you THEIR first or first two sales…which can then turn into four which turns into eight etc…
This type of income is often referred to as exponential income instead of residual income… The cost to get involved into the non mlm business opportunities is often higher than the mlm…and the products are usually of greater value.
In some cases because it’s a direct sales model the commissions made are as high as 80 versus the 310 in traditional mlm…Instead of making 10 and 30 commissions you quite often make anywhere from 500 10000 per transaction… So basically the main differences in a non mlm opportunity are:
You get paid directly by your client instead of by the company…
You do not profit from a downline once their ‘training sales’ are done…
The commissions are higher and so is the investment in most cases…
I personally believe that there is success to be had in both compensation structures…typically it happens more quickly within the non mlm pay plans because of the higher commissions especially if you are a gogetter and highly motivated individual!
About the writer: Pedro Martinez is an established Internet Marketing Advisor who has been helping hundreds to build successful Home Internet Business for over 10 years. To learn much more about how you can start an Internet Home Business stop by http://www.thebizfromhome.com
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