Most of us stepping into the world of entrepreneurship, business, and marketing often get confused with the titles. There are many types of businesses and marketing out there. If you skip proper research, you may get confused. Well, all of us know what that will lead to. Entering or diving straight into any area without proper knowledge about it is dangerous. It is especially true in the case of business. So, today, let me help you to decipher the difference between network marketing and direct selling. In theory, both may look very similar, but trust me, they aren’t.
What is Network marketing?
So, before diving into the technicalities of these business models, let’s examine their definitions. So, what exactly is network marketing? Network marketing is a process or sales approach where the products and services are marketed to the customers through a multilevel sales organization. So, it is a multilevel marketing business or, in other words, an MLM business. So how does this work?
This sales approach or distribution-based marketing system makes various products and services available to consumers through an MLM scheme. Network marketing also concentrates on extracting revenue from the down lining. The recruiters of network marketing recruit downline members under their authority. In such a scheme, the recruiter can not only earn money by selling products themselves and finding their clients. They will also get a special percentage commission out of the sales made by their downline members. Interesting, right? So, now, let’s learn about direct selling.
What is Direct selling?
Direct selling is the sales approach where products or services are sold directly to the consumers. The sale can be made anywhere else than a business premise. So, a direct seller can sell their products at the home, office, parties and even religious gatherings. In such a sales approach, the revenue for the enterprise is solely coming from the sales and not from any recruitment.
Basically, a direct selling business or a direct seller removes the middleman from the equation. So what happens when middlemen are removed from a business transaction? When a company directly sells the products to the consumers, the consumer only has to pay for the product’s value and nothing else. The amount each consumer has to give as the commission to a middleman like your retail shop, an advertisement agency etc., is deleted from this equation. You won’t be able to believe the huge difference in cost this single action can create. So, that’s it. Did you understand the difference between both these sales models? If not, let me point it out to you guys.
The differences between direct selling and network marketing
The primary and probably the only difference between these sales models is that when network marketing or networking markets can profit by recruiting more people and down-lining recruiters, direct selling generates revenue entirely based on sales. It makes direct selling a bit more transparent ad straightforward.
Moreover, as network marketing concentrates more on creating a network rather than selling their products directly to the consumer, the benefits a consumer can receive are minimal. This is because of the several layers of commission amount network marketers extort from the consumers. But that doesn’t make network marketing a definite bad thing. A business can only be successful if they learn to employ the benefits of any sales method to its full potential. But, a direct selling company like QNET will be more trustworthy and reliable than a network marketing company.
So people, before entering any business or sales model, conduct thorough research on what the sales model is and how the revenue is generated. Many a time, that extra homework you did can make all the difference in the world. If you want to build a direct selling career that won’t jeopardize you, head to QNET India, start your research and pave the way to definite success.
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