October 6, 2008
Are all direct sales done in MLM?
Smartass asked:
It seems these two terms are going hand in hand to become synonymous, but the direct definitions are the opposition.
It seems these two terms are going hand in hand to become synonymous, but the direct definitions are the opposition.
MLM, network, or matrix marketing is EVERYTHING but “direct” (especially how the money is split). So my question is, are their direct sales companies that operate on traditional marketing (if so, do we simply call those franchises?)? Or better yet, are online eBay businesses considered “direct”?
I am NOT stupid enough to join any MLM, but I wanted to ask if these two terms are EVER separated. Are there non-MLM direct sales companies?
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Filed under Marketing & Sales by Administrator

Comments on Are all direct sales done in MLM? »
This is how MLM or network marketing companies work.
MLM is just a scam. The people at the very top are cheating everyone else involved in the MLM. It is sad.
The people at the very top make all of the money. It is made by making everyone else involved in the MLM pay money to purchase motivational materials and attend motivational seminars.
Avoid MLM. You will not make any money at it. Everyone involved in MLM buys merchandise from the MLM that they never use because they cannot find anyone else to buy it.
The MLM companies are just evil. I can’t say anything good about any of them. If you get involved with MLM you will lose everything that you value in this world. Your friends and your family. Everything.
You could make a lot more money if you got a part-time job working a McDonalds. Very few individuals involved with MLM make any where close to the minimum wage.
Good luck.
You Obviously have no real idea how MLM works, it is direct marketing in that individuals acquire customers directly for the goods and services supplied by the parent company, so the company can supply the goods or services directly to the customer. The advantage of MLM is personal recommendation, which cuts out the very expensive, advertising, mail shots and tele marketing used by other companies. How the income is derived for the representatives has nothing to do with the direct marketing.
The only true direct sales are where companies have their own sales outlets, like factory shops, in all other cases marketing and sales have to go through some sort of channel to reach the final customer.
Online Ebay businesses could only possibly be described as direct if the person selling the items was actually making them as well, Ebay is probably the most indirect way of getting goods to the final customer.
Usually, all the major direct selling companies such as Avon, Amway, Mary Kay, and many more, have a multi-level program in place. As an affiliate or independent distributor (as they call it), you could choose between to embrace the business opportunity offered by these companies through their multi-level program and create your own list of referrals by marketing (that’s why it is called MLM) that option and earning a commission for their selling efforts, and to just sell the products or services for the company yourself without promoting the business opportunity to others, or embrace both options at the same time. Yes, online eBay businesses are considered “direct”.
Javier A. Garcia
The difference is really all about perception think about it I worked for a large financial intuition for several years I worked hard to earn different levels and make more money as I went up the ladder. I also earned bonus for referring people to the company as long as they stayed 6 month I received a referral check not sure how this is so different then direct sales. Every business has workers and management and people in between.
I am not going to argue the point as to if Mary Kay is MLM or not I can toll you if you never recruit a single person you still make 50% commision on what you sell all they way to the top national. If you do decide to build a team the company pays you commission it does not come from anyone else pocket it comes from the company’s 50%. I like being my own boss without having to own my own company. It works for me any many others the problem is the people that misrepresent direct sales the “sales people”
As for it being direct sales I buy directly from the wholesaler and stock my store so I deliever to the customer at time of purchase as would any retailer. So I am the middleman. So Is it really direct sales??