Network Marketing Versus MLM

We often hear network marketing referred to as MLM (Multi Level Marketing) and vise-versa. So why the two names? Which is it?

MLM is older terminology that has somehow stuck around and refuses to go away. Most modern networkers use the term "network marketing" almost exclusively. For example, the Direct Marketing Association (DMA) refers to it as network marketing. The DMA is a leading trade association of businesses supporting direct marketing tools and techniques and many network marketing companies belong to it.

It's important for people interested in a modern network marketing business to use the term 'network marketing' instead of MLM because the key word in there was "modern". To put it simply, MLM was an old way of doing the business and Network Marketing represents a newer, more concise approach method to the business. In that regard they are more than just words - they're concepts.

MLM represents the old, inefficient way of doing business. That would be the old "pester your friends and family" method of selling the products and the opportunities. It also involved talking to perfect strangers around you about your product and opportunity. These methods were widely used by earlier MLM's like Amway and HerbalLife back in the 1970's. For a variety of reasons, they didn't work very well then and they work even less well nowadays.

Network Marketing embodies more effective methods for doing business. These methods embrace channels such as television, radio, and internet advertising to attract people who may be interested in the products and/or business. A good network marketing company will have a lead system in place that will make it easier for you to do business. Instead of talking to various uninterested parties, you will talk to people who have already expressed an interest in the business and/or the product. There is a world of difference between those two kinds of prospects. Your time is much better spent and the conversations tend to be more "win win" for everyone involved.

Some people continue to refer to MLM and Network Marketing as one in the same. However, consider that there is a better way approach the business than the old MLM style and you may find yourself with a better understanding of the two terms.