What's the difference?Between: • Direct Marketing Most people think there is no difference, but there is.
Direct MarketingDr. Carl Rehnborg, of "Nutrilite" fame, came up with the idea of by-passing the middle man and his manufacturing company selling directly to the customer via his sales force, in the late 1940's. He paid his salespeople a commission for every sale made and increasing his profits by cutting out the wholesale distributor for his products. Thus, "direct marketing" was born. When most people say "direct marketing" they’re thinking not only "direct marketing”, but "network marketing" and "multi level marketing" as well. The last two are very similar, but there is a slight, but very important difference. Network MarketingTo increase sales, motivate, and reward his direct sales force, Dr. Rehnborg decided to let his existing direct sales force recruit associate salespeople, one level deep, and receive an override from their production. There was no limit on the number of recruits they personally sponsored. The new first level recruits could not sponsor a salesperson (an associate or distributor) and benefit, as their sponsor (the salesperson that recruited them) could. Multilevel MarketingTwo of Dr. Rehnborg's salesmen thought of a better marketing plan and started their own business from the basement of their home, with one product, "Frisk". That company is known today as "QuickStar", the re-branding of the Amway Corporation, of Ada, Michigan, founded in 1959. My hat is off to Jay Van Andel and Rich De Vos, Co-Founders of the Amway Corporation, a multibillion dollar company operating worldwide in over 44 countries. They are the "path finders"; they led the way, fought all the battles, and cleared the way for what the Federal Trade Commission deemed a valid and viable business model in 1979. So, get over it. MLM is for real and the mightiest lever the average Joe, like you and me, has to amass a fortune if we desire it and are willing to put forth the effort required. It is also the business model that 70% of the members of the DMA (Direct Marketing Association) have adopted to market their products and services. A few notables are Citibank, IBM, and MCI. Wall Street firms have quietly set back and waited to see how things would pan-out in the MLM arena, and now are moving as quickly as possible to take full advantage of MLM, according to Richard Poe, Co-Editor of SUCCESS magazine in his book, "WAVE 4". He states that, "If you are not participating in MLM, you will be out of business". Powerful! Referral MarketingHow many times have you referred someone to a restaurant that you like, a movie you just love, or a new dish you really like? We do this all the time, we just don't get paid for the word-of-mouth advertising these establishments or individuals are not having to pay for; it's free ads for them. The only difference in referral, direct, network, or multilevel marketing is that you do get paid for it, and very well. Advertising is very expensive and that is, by and large, the money a network marketer is being paid in commissions, team overrides from team production, and residual income. I will discuss this in more detail later. So what are you waiting on? Get going. Time is wasting! Mmm-L-Mmm! That's one of those "Pyramid Schemes"Get real! Corporate American is a "pyramid scheme". I know. I worked in one for over twenty five years, until I wised up and started my part-time business that became full-time after one and a half years. (There's nothing slow about me!) Question -Who makes the most money at your company? -The CEO in most cases, you know, the one at the apex of "the pyramid" makes the most money. At the next level, directly under him, are the next highest paid employees; the senior executive staff members. At the last company I worked for, there were eight of those. Under them, and the next highest paid, were presidents of departments. Under them were vice presidents of departments. Each of them had directors and the directors have managers. And the managers had five to twenty low level, lowest paid "worker bees"; 2,600 headquarter employees in all to run a huge company of over one hundred thousand employees, total. The revenues generated by the worker bees, in the field, flowed up the corporate pyramid, right on up the pyramid to the very top. Sounds like "a pyramid" to me. Pyramid or Spider WebQuestion -Does a spider's web, a network of interconnected strands of silk, look like a pyramid to you? -Of course not and neither does a network of multiple points of distribution of a product or service. You say, "A spider web is not for distributing anything". Wrong. It transmits the vibration of its prey that is caught in its web. Now, in no way am I contrasting "prey" with "prospect", but I think you get the point. A spider's web is all over the map and does not look anything like a "pyramid". I sponsored an associate in Texas that sponsored an associate in California that sponsored an associate in Maine that sponsored an associate in California. That is no "pyramid". What Direct Marketing Is Not• A get rich quick scheme What Direct Marketing Is • A serious business Why 95% Don't Achieve Their Goals• Fear of failure - You "must" fail your way to
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