Most people assume Direct Marketing, Network Marketing, Multi-level Marketing, and Affiliate Marketing are all the same. They couldn�t be more wrong! So what are the differences between them? Although these are all easy ways to build long term passive income there are some small differences that people need to be aware of. Better understanding will help people best decided which direction is the right direction for them.
So let�s start with a definition of Direct Marketing. The Webster Dictionary description of Direct Marketing is �Marketing by means of direct communications with consumers�. Direct marketing can be your own product but is more likely someone else�s product. You promote a product and get paid a very reasonable commission. Sale goes directly through you to the purchaser.
Subcategories of Direct Marketing is where this all gets a little fuzzy. Network Marketing, Multi- Level marketing and Affiliate Marketing are all a different form of a Direct Marketing strategy.
Here is how they differ:
Network Marketing: This is marketing �word- of- mouth�. This is where you USE direct marketed product in combination with a network of people whom you are developing and teaching how to do the same thing. People earn commissions for the sales and also for developing a larger sales force.
Multi-Level-Marketing: (MLM) This one is a little more complicated. Although similar to Network Marketing, the focus is usually growing your teams versus focusing on the sale as this is where MOST of the commissions get paid. In MLM it is quite different as one person brings in hundreds of people who each only earn a small commission for any direct sales they make and the rest of the commission is split among all the other �up line members�. Sound familiar to all those out there who have a traditional job? It should! Think of your own companies MLM which usually starts with the CEO. He collects off of everyone elses efforts.
Affiliate Marketing: Affiliate Marketing is a type of internet advertising in which affiliates drive traffic to an advertisers webpage for sales. The Affiliate receive a share from the advertiser and the advertiser also benefits in getting the sale and doing so in a relatively low price way. All you are doing is allowing someone into �your space� to place an advertisement. You don�t have to handle anything, just collect a portion of the gains when someone buys from your �billboard�.
Each form of Direct Marketing strategy in this case has a team building concept. Without a team, payment doesn�t happen. Even with Affiliate Marketing, without the advertiser, the affiliate marketer doesn�t make money. Each of these forms is a way to create a residual income. No one way is the right or wrong way, they are just different ways.
In conclusion, there are several ways to create a passive income using different direct marketing techniques. To know which direct marketing strategy will work best for you, it is important to educate yourself with companies in the direct marketing arena and do a little research on the companies to make sure they fit your needs. With the thousands of direct marketing companies out there and different tools available, this can be one of the most lucrative options out there to build serious wealth for those who are willing.
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Mark Manderville is a professional in personal branding and attraction marketing. Click on NETWORK MARKETING TIPS to learn more about a system that will grow your business at a rapid rate.
