Network marketing vs traditional marketing

Network marketing vs Traditional marketing

Pavanan Ghosh

In a conceptual evaluation of Network marketing vs Traditional marketing, Network marketing has built supremacy over traditional marketing by its swift and reliable solutions.

Multi-Level Marketing, also known as Network Marketing is quickly becoming a way of life in the business community. Almost every major company now offers affiliate referral and commission programs. This would never even be thought of by traditional businesses a few years ago. Many business owners are finally letting go of their traditional business practices and stepping into the world of multi-level marketing.

Multi-Level Marketing permits independent distributors not only to sell the product or service but also to recruit other independent distributors and draw a commission from their sales. The entire system works on the basis of a broad network of people, hence the name ‘network’ marketing. Now let us have a look at Multi-Level Marketing vs Traditional Marketing, how MLM is different from traditional marketing, and the benefits of Multi-Level Marketing.

Traditional business vs Network marketing – How they differ?

In a wholesale or retail store, the owner hires employees and pays them an obligated salary to sell their goods. Irrespective of how many products or services the employee sells, they receive the same salary. Because, if a store owner hires “employees”, they will be responsible for paying taxes, insurance, other incentives, and these all expenses are calculated into the total selling price of the product.

While in MLM, all the members are business owners. They all work on commissions. As opposed to a traditional business, MLM companies build and run their sales force by enlisting and motivating individual distributors to sell their products and recruit more individual distributors. The products are legit and range from diet supplements and housewares to cosmetics. Popular multi-level marketing companies that you might have heard of include Tupperware, Amway, Cosway, Herbalife, Avon, Mary Kay, etc.

Businesses that use a multi-level marketing model often create levels of sellers. These sellers are encouraged to enlist their own networks of sellers. The makers of the new levels earn a commission with their own sales and through sales made by the people in the levels they created. Eventually, a new level can produce another level, which provides additional commissions to those in the top levels and the middle levels.

Today, companies prefer to use MLM Software to easily manage multiple complex levels in their Multi-Level Marketing businesses. This software provides a wide variety of MLM plans to grow their Network Marketing businesses.

Benefits of Multi-Level Marketing

We have explored the differences between MLM and traditional businesses and how it differs from a traditional job. Now let’s have a look at the benefits Multi-Level Marketing has to offer.

#1.Minimal Risk

MLM is a low-risk business compared to traditional business which has high initial costs and immense risk associated with them. This empowers the common man to start their own business without much concern about failure.

No initial profits, difficulty finding clients, losing time and money, etc… are just a fraction of problems faced by people starting traditional businesses. All of this combined with the inflated initial cost of setting up a business holds back a normal person from writing their own success story.

MLM minimizes these risks. The initial costs are negligible compared to that of traditional businesses and with trivial investment, anybody can get started on their own.

#2.The Potential of Enormous Income

There is no limit to potentially how much money you can make from your MLM business. Sky’s the limit. In a traditional job, you will only be paid an industry-standard salary irrespective of how hard you work.

That is not the case with Multi-Level Marketing. How much money you make is solely dependent on your efforts. An MLM business doesn’t hold you back like a regular job.

Checkout the importance of MLM business software

#3.Minimal Operating Costs

With negligible initial costs, no need for infrastructure or employees, an MLM business understandingly has low operating costs. An MLM business can be operated at a lower cost compared to any other business model.

#4.Passive Income

One of the biggest advantages of an MLM Program is the opportunity to enjoy passive income. After the initial effort of recruiting a new seller, you can reap the benefits of sales made by them, sales of sellers recruited by them, and so on. MLM businesses are great opportunities for anyone to earn passive income.

#5.Financial Freedom

MLM is a business that has the potential to provide you with a fulfilling lifestyle. Financial freedom is not just about making a lot of money. Your MLM business can provide you with enough income to cover your expenses so you can spend your time doing what you want to do instead of working jobs just to earn money.

#6.Work From Anywhere, Anytime

With an MLM business, you have the ultimate control over your schedule. You can work from anywhere, anytime with just your laptop or mobile phone. You could be doing business while you are on the road, enjoying a vacation, visiting relatives, be in another city, or even another country!

#7.Increased Flexibility

There is no fixed way to do business in network marketing. You have a high degree of flexibility to go about your business in any way you like. You can choose ways to sell your products and add new members according to your preference. People who are good at grand gestures can conduct product demonstrations and parties for crowds. Those who prefer a more personal approach can do one-on-one meetings. These days people can also conduct their business online using social media and websites. Using unilevel MLM software and binary MLM software have increased the degree of flexibility of MLM business.

#8.Personal Development

You can learn a lot of things about business, life and grow as a person through MLM business than any other business. This is one of the biggest benefits of MLM business. As you work on your own in this business, you will become more responsible, develop better communication, time management, and interpersonal skills. You will also have to motivate, mentor, and train your downlinks.  All of this will help you grow professionally and become a better individual.

Checkout the benefits of mlm software for mlm business.

#9.No Employees

For a traditional business to be successful, all employees have to perform at their best. But in the network marketing business, you alone are largely responsible for your success. You don’t have to pay any salaries or worry about employee satisfaction. There is only one boss and one employee, you. But that doesn’t mean you will have to do it all alone. There will be a strong team of uplines and downlines to support you in all steps of the process.

#10.No Requirement of Degrees or Certificates

Education, degrees, diplomas, and certificates can take you a long way in life, but not in the network marketing business. Educational qualifications do not guarantee success here. It requires a huge amount of hard work, commitment, persistence, and effort to make it big in network marketing. You should have the basic knowledge to use software like Unilevel MLM software and binary MLM software.


It is not just the financial aspect, but the promise of a fulfilling lifestyle that makes MLM businesses attractive. Multi-Level Marketing is a massive opportunity for the common man to start their own business with minimal risk, low costs, the potential of considerable income, and attaining financial freedom.

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