5 Ways Single Level Marketing Differs from Multi-level

If you’re looking to satisfy your entrepreneurial spirit, and you’re startup funding is limited, direct sales and multi-level marketing could be a great way to make money. While the multi-level version is a subset of the direct sales approach, the two are different in a variety of ways. The following are 5 ways single level marketing differs from multi-level.

Products

Individuals tired of working for someone else or looking for a career change may find themselves involved in direct sales marketing. This single level method of selling involves working with goods such as food products, cutlery, beauty products or merchandise related to the health industry. If the consumer pays a substantial expense for the items, the same customer may not have the need to purchase more for their own use for quite some time. But they could buy for others. Multi-level marketing businesses offer less costly items that are guaranteed repeat sales.

Organizational Structure

A direct sales company usually operates with a manufacturer who produces the items to be sold. The business hires freelancers or contractors who are willing to sell the product. You can become a sales representative for single level marketing companies without any experience. This can be an excellent pay opportunity because the company will provide training and teach you how to set goals, communicate, and manage your time. You can also set your own daily schedule. While multi-level companies follow a structure that is somewhat similar, sales individuals can be recruited. The pay schedule could also be muddled as the person who recruits could make commission off others they sponsor within the company.

Costs Associated with the Business

Startup costs for direct marketing sales are generally lower. Because you can work from anywhere, you don’t have to worry about the costs of setting up shop. If you’re a multi-level business owner, your primary focus is typically on recruiting members and not the actual product itself. You also need to plan for legal and industry fees, technology, and a proper compensation plan.

Important Considerations Between the Two Marketing Plans

Direct selling marketing is a great source of income for those new to the business and who believe in the product. It’s also ideal if you want to hone your business skills and add to your job resume. As an independent product distributor, you’ll have no overhead, and the money made is yours. If you find a quality product, it’s easier to sell something that you’re excited about and can believe in. Unfortunately, multi-level marketing often is thought of as a pyramid scheme. This is solely based on the payment structure. But there is a difference because multi-level marketing involves the sale of merchandise and income earned based on the sale.

Control Your Income

The Internet and social media have drastically changed the direct sales approach. While salespeople in the past typically went door-to-door to peddle their wares, you now have YouTube, LinkedIn, Facebook, Twitter, and other social networks to attract customers. You can also use the party planning method to up your income. The commission made from the personal sales can be very good whether you work part or full-time. You may also have other incentives and bonuses available. Multi-level marketing does include sales, but you could gain more monetary incentives when you sign people up as distributors or customers. While each company’s sales structure is different, you could make less money than if you would go the direct sales approach.

Direct sales and multi-level marketing are similar in some ways, but different in others. While the single level approach includes a type of face-to-fact tactic, the merchandise is presented by an independent sales clerk. Multi-level marketing is an additional process that compensates and systemizes sales individuals. You can also receive income in a variety of methods.

 

 

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