Direct Sales Vs Network Marketing?

[pamperedlinda]

What's the difference between Direct Sales and Network Marketing? Are they different terms for the same thing?

 

[ChefBeckyD]

What's the difference between Direct Sales and Network Marketing? Are they different terms for the same thing?

When I think of network marketing, I think of things like Amway - where you are making money just by signing people up, not by selling an actual product.

 

[Dawn4]

I looked it up online. The difference is that direct sales is more of a one-on-one thing. Network marketing is selling to a large group.

 

[Chocolatejunkie]

First of all Pampered Chef is NOT network marketing we are direct sales.

With network marketing you are encouraged to buy from yourself. So you buy from yourself for whatever product they are peddling be it vitamins, groceries, or makeup. You buy your own vitamins from yourself, the nice thing is you get a commission off of whatever you buy for your own personal use. Your upline also gets a commission off of whatever you buy. So with network marketing you are encouraged to buy from yourself and then recruit others to also buy from themselves. The more people you recruit the more of a kickback you get.

With direct sales we don't encourage people to buy from themselves. We go out and sell to other people. When we recruit we also encourage our recruits to go out and sell to other people.

So with network marketing you buy from yourself and don't sell to others but recruit other people to buy from themselves.

With direct sales you sell to a large customer base.

What can be confusing is that some people do use the terms interchangeably even though they are not the same.

 

[chefann]

When I think of network marketing, I think of things like Amway - where you are making money just by signing people up, not by selling an actual product.

That's not entirely true - there's no direct monetary plus to just signing someone in Amway, they have to purchase/sell items in order for the sponsor to see any financial gain.

 

[ChefBeckyD]

That's not entirely true - there's no direct monetary plus to just signing someone in Amway, they have to purchase/sell items in order for the sponsor to see any financial gain.

I know - I am just not expressing myself well today!:grumpy:
It's the idea that when you meet someone who is an Amway Distributor, they don't try to sell you product - they try to sell you on signing up. I've said this before - but of all the times I've had someone approach me, or come to my house regarding Amway - never once have they tried to get me to buy any product - they just try to get me to sign up and become a distributor myself.......a distributor of what....I may ask? (I KNOW what they sell - it's just that never comes into the conversation.) So like chocolatejunkie stated - it's about getting people to sign up and buy themselves - not about selling a product.

 

[pamperedlinda]

Thanks. This is what I thought was the difference, just didn't know how to word it or explain it.

So Direct sales examples would be: PC, Tupperware, Southern Living @ Home, Taste of Home....

Network Marketing examples would be: Arbonne, Amway, Melaluca....

Is that right?

First of all Pampered Chef is NOT network marketing we are direct sales.

With network marketing you are encouraged to buy from yourself. So you buy from yourself for whatever product they are peddling be it vitamins, groceries, or makeup. You buy your own vitamins from yourself, the nice thing is you get a commission off of whatever you buy for your own personal use. Your upline also gets a commission off of whatever you buy. So with network marketing you are encouraged to buy from yourself and then recruit others to also buy from themselves. The more people you recruit the more of a kickback you get.

With direct sales we don't encourage people to buy from themselves. We go out and sell to other people. When we recruit we also encourage our recruits to go out and sell to other people.

So with network marketing you buy from yourself and don't sell to others but recruit other people to buy from themselves.

With direct sales you sell to a large customer base.

What can be confusing is that some people do use the terms interchangeably even though they are not the same.

 

[DebbieJ]

Actually, we are Network Marketing.

The others you are thinking of are Multi-Level Marketing, which we are not.

 

[pamperedlinda]

Actually, we are Network Marketing.

The others you are thinking of are Multi-Level Marketing, which we are not.

Okay, now I'm confused again. So, are we considered Network Marketing or Direct Sales? I thought that since we were a part of the DSA that we were Direct Sales.

 

[DebbieJ]

Direct Sales IS Network Marketing.