What Is The Difference Between Direct Sales & Multi-level Marketing?

Multilevel marketing sales reps urged to sign up others

The businesses essentially contract out sales jobs to freelancers that do the door-to-door selling. Salespeople receive commissions based strictly on the number and size of their own sales. Multilevel companies follow a similar structure, but add a twist: An individual salesperson can recruit others into the company, which creates a “downline” source of sales and income. The recruiter then becomes eligible to collect a percentage of revenue from the people in the downline. As long as members of the downline continue to sell, the upline receives residual income in addition to revenue from her own sales. Costs While startup costs can vary considerably from company to company, multilevel marketing programs tend to offer lower startup costs. The generally lower cost of the products contributes to the lower initial investment. Multilevel marketing programs frequently require salespeople to maintain limited or no on-site inventory, which frees the sellers from needing to store or replace products. Direct sales companies can require sellers to maintain stock of more expensive products, creating a higher up-front cost and recurring costs as well. Considerations Multilevel marketing often gets compared to pyramid scams, as the payment structure resembles a pyramid. You can discern the difference between pyramid scams and multilevel marketing on two dimensions.
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/ Kimberly P. Mitchell/Detroit Free Press ViSalus Started in 2005 in Troy A multilevel marketing firm, the same industry as Amway and Herbalife Revenue grew 171% in 2012 Did $623 million in sales last year Has more than 70,000 independent sales agents Employs 420 staff in Troy headquarters, 80 at its Los Angeles office Top ViSalus products Body By Vi 90-Day Challenge Vi-Shape meal replacement shake ViSalus Nutra-Cookie with protein and fiber ViSalus NEURO energy drink mix ViSalus GO energy shot More ADVERTISEMENT Grand Rapids native Nick Sarnicola is a multimillionaire co-founder of Troy-based ViSalus, which is fighting to keep its place among the worlds biggest multilevel marketing companies. Launched in 2005, ViSalus makes nutritional supplements and weight loss shakes that it sells through a network of independent sales agents. These agents, which the company calls promoters, earn commissions based on sales to customers, as well as on sales made by and to other ViSalus distributors whom theyve recruited to join the company. Generally speaking, the higher a promoters position on the network chain, the greater his or her potential revenue stream. A subsidiary since 2008 of Greenwich, Conn.-based Blyth, ViSalus became a breakout success last year in the challenging and often controversial multilevel marketing industry, which includes long-established names like Mary Kay, Tupperware, Amway and Herbalife. But the company will need to pull up from its recent sales decline to prove itself as more than a flash in the pan. With $623 million in sales and $69 million in profit in 2012 representing 171% annual growth, ViSalus is considered the 21st-largest multilevel marketing company in the world by revenue and second largest in Michigan to Ada Township-based Amway, the largest on the globe, according to the industry trade publication Direct Selling News. With savvy management, creative promotions and a full embrace of social media as a sales and recruitment platform, ViSalus burst on the scene last year as one of the hottest and fastest-growing multilevel marketing firms on the globe. But ViSaluss growth as high as 450% year-over-year last summer tapered off and was in full reverse by the fall, leading to the cancellation of the companys planned $175-million IPO and a shareholder lawsuit against its parent company, on claims that Blyth executives tried to conceal problems with ViSaluss business model in hopes of a more lucrative public offering. Blyths legal counsel says it is fighting the suits claims. Multilevel marketing began making headlines in the business press after hedge fund manager William Ackman disclosed in December his $1-billion market bet against Herbalife, a shake and supplement business started in 1980 that he considers an unsustainable pyramid scheme that is bound to collapse.
For the original version including any supplementary images or video, visit http://www.freep.com/article/20130602/BUSINESS06/306020059/ViSalus-multilevel-marketing

Solavei further entices its customers to upsell its mobile service

DSA represents 200 companies and approves about 25 new members’ applications a year. The trade group has about 50 applications for membership pending at any time, Robinson says. Fortune Hi-Tech Marketing, which is under investigation by at least four state attorneys general and settled legal charges filed by Montana last spring, has an application pending to be a member of the association. The decision on whether to admit a member falls on whether a company’s policies “protect consumers,” Robinson says. The primary source of income for multilevel marketing companies has to be product sales, says Robinson, as well as several legal experts interviewed. When recruiting is the focus, that’s “one of the things that distinguishes a pyramid scheme.” “The people at the bottom predictably lose out,” Robinson says. Robert FitzPatrick, who runs PyramidSchemeAlert.org and works as an expert witness in lawsuits against multilevel marketing companies, says state and federal government officials simply can’t or choose not to police multilevel marketing companies as much as he believes is necessary. FitzPatrick says “virtually all” consumer salespeople who work in multilevel marketing lose because the recruitment-based marketing can only bring in so much money. Each level always has to be bigger than the last level, and the “vast majority always have to be at the bottom.” Presentations by Fortune managers often say earnings can multiply “to infinity” because there’s no limit to how many new people can join.
For the original version including any supplementary images or video, visit http://usatoday30.usatoday.com/money/companies/2010-10-15-multilevelmarketing15_ST3_N.htm


For every three new customers members sign up, they get $20 a month knocked off their bill or deposited on a prepaid Visa card. Now Solavei is sweetening the pot. On Wednesday it launched Marketplace, a network of 16,000 retailers and merchants that will give Solavei discounts on goods and services if they pay with their Solavei cards. The network is managed by payment processor First Data and includes Old Navy, Target and Starbucks along with other national chains and thousands of independent stores and restaurants. Subscribe to gigaom.com Solavei is definitely starting to increase its resemblance to the multilevel marketing outfits like Amway that it based its business model on. Not only is it blurring the line between customer and service provider by having its members not only sell but also maintain the relationship with the customer, its creating a loyalty network among its members. The next step would be to move beyond offering members discounts to selling members goods directly and thats exactly what Solavei plans to do. In its Marketplace announcement Solavei said: in the future Solavei will also offer its customers reduced-cost primary household goods and services such as general merchandise. Youve probably already run into Solavei members online likely on many occasions. When the company first launched last year, eager and annoying Solavei converts started spamming message boards (including GigaOM) social networks with their pitches. After a few months Solavei reigned in many of its most aggressive marketers or site and network administrators s just got better at blocking them but that hasnt stopped Solavei from growing. In August, Solavei said it had 100,000 members , which is pretty good for boutique MVNO in its first year. While a good deal of its success as attributable to its marketing tactics, it also offers a good value particularly for the heavy smartphone users. It basically has a single prepaid option: $49 a month for unlimited voice and SMS and 4 GB of data on T-Mobiles HSPA+ networks.
For the original version including any supplementary images or video, visit http://money.cnn.com/news/newsfeeds/gigaom/articles/2013_10_09_solavei_further_entices_its_customers_to_upsell_its_mobile_service.html

7 Proven Multilevel Marketing Lead Generation Secrets

Like other companies and sites we contact in preparation for our articles, Ask-A-Tech was aware of the publicity it would receive, and we understand it has increased its staff in response. –Carla Thornton Net Privacy? No Problem Your interesting articles and reader letters about invasion of privacy on the Internet have left me wondering: Am I missing something? The following is all it takes to protect my privacy on the Net: 1) I use Cookie Crusher to eliminate 99.9 percent of cookies. When I must accept a cookie in order to access a page, I do so but then I immediately erase view it from my hard drive when I’m finished with my online session. I’ve put a shortcut to the cookie folder on my desktop, so it’s very easy to check which cookies are there and to delete the ones I don’t want. 2) If a site requires me to provide personal information that I think is none of its business, I invent such information. I never give my real name, address, telephone number, or e-mail address. A. Luneva, via the Internet Secrets Of Preinstalled Software In response to Michael Guerard [ Letters , July], who asks why developers don’t support OEM versions of their software: Preinstalled software really isn’t installed at all. If you push, prod, and poke your way deep enough with a computer maker’s tech support folks, you’ll find they never install anything–everything is ghosted/imaged on the new PC.
For the original version including any supplementary images or video, visit http://www.pcworld.com/article/11917/article.html

Understanding The Best MultiLevel Marketing Companies – MLM Tips #17

“Lawyering is a high-risk, high-stress business,” he explains. “It’s a constant struggle of people trying to get you to compromise your ethics. NuSkin is an upbeat business. And it gives you a sense of freedom. “You can develop an income stream with potential – and hopefully not work 12 hours a day for the rest of your life.” ******* (additional information) Tips for spotting a scheme The term multilevel marketing is loosely used, notes marketing consultant Ken Smith. “The pyramid schemes never call themselves pyramid schemes.” So how can you tell one from the other? Here are a few guidelines: – The company should actually sell a product. Otherwise profits are based only on new recruits. – Is there actually a consumer market for the product? – Watch out for substantial start-up investments.
For the original version including any supplementary images or video, visit http://www.deseretnews.com/article/124521/MULTILEVEL-MARKETING–THOUSANDS-SIGNING-UP-AND-SIGNING-OTHERS-UP–FOR-THEIR-SHOT-AT-FORTUNES.html?pg=all

Is Multilevel Marketing on the Level?

Sign in Sign in to YouTube Sign in with your Google Account (YouTube, Google+, Gmail, Orkut, Picasa, or Chrome) to dislike Rob Fore’s video. Add to Sign in to YouTube Sign in with your Google Account (YouTube, Google+, Gmail, Orkut, Picasa, or Chrome) to add Rob Fore’s video to your playlist. The advice you just read is the lucrative area of network marketing. If you have decided to embark upon a network marketing campaign, which can vary greatly depending on which program you choose. When you know how much you will be paid for your time, it makes it easier to commit significant time to the task at hand. You may have to dedicate more time to your business at first, but as you start to see money coming in, you may be able to spend time with your family. Whether you purchase the lists to combine or make one out of feedback from your site, your success is contingent upon you having a large email list so the business can continue to grow. Try to be someone that others want to copy when you are going about your network marketing. Use one-of-a-kind promotions to make your creativity to create a campaign that stands out. Try to refrain from copying other sites, rather than copying someone. Allow your networking clients to take control of the freedom to speak freely.The more you learn about them via social media and other outlets, the better chance you have to tailor your marketing approach directly to their needs. You can then direct your marketing efforts to their needs, desires and aspirations, fears and dreams.
For the original version including any supplementary images or video, visit http://www.youtube.com/watch?v=DCisf6IksZo

Troy-based ViSalus hopes to prove staying power in multilevel marketing

This is important. They need to know what it’s like to be in the trenches as the marketer. http://strtnetworking.bizbuildermaste… Training – A MLM company will only go as far as its training. If the training isn’t good, it will never grow and expand, consistently. This is imperative for growth of you AND your team. Product/Service – If your product is junk. So is your company. Plain and simple. People who spend money on a product and it doesn’t’ work, they WILL complain and the BBB will catch on and it WILL get shut down or get slapped hard, leading to poor reviews – and eventually closing their doors. Vision – If the company doesn’t have an exciting vision; especially if they don’t have an exact plan of where they are, where they want to go, and how they are going to get there; look out!
For the original version including any supplementary images or video, visit http://www.youtube.com/watch?v=2gmlYCPWpAI


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