Understanding MLM and Network Marketing for Business Success

Network marketing and MLM are two main categories of a direct selling. Network marketing products are sold through a chain of distributors who work under the basis of a commission-based structure. They may or may not have different compensation and incentive plans for distributors. Compared to multilevel marketing they have less regulations and they are implemented for the sales of only tangible goods. Multilevel marketing is the distribution of products and services through independent distributors. These distributors are given a small percent of the company profit for the sales they make and for the sales their downlines. Both network marketing and multi-level marketing is a lucrative opportunity to let them earn a side income. The flexibility the business model offers let the individuals attract towards this business. Recent studies show around 51% of network marketers invest about 10 to 30 hours per week in this hustle.