Talk:Multi-level marketing

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POV fork merger discussion

Direct selling is basically just a WP:POVFORK of this article. In fact, both articles explicitly state that they are the same thing. —CodeHydro 01:48, 30 August 2010 (UTC)[reply]

Actually, per Retailing By Patrick M. Dunne, Robert F. Lusch direct selling and multi-level marketing are two different things--direct selling is the distribution method while multi-level marketing is one of several compensation plans used in direct selling. Sadly the number of sources that confuse the two far outnumbers the sources that correct the misunderstanding.--BruceGrubb (talk) 04:25, 30 August 2010 (UTC)[reply]

Well both articles will have to clarify that information, though we'd need an example of a case of direct selling that is not multi-level marketing, otherwise the distinction is merely hypothetical and too liable to POV forking to be worth a second article. —CodeHydro 12:20, 30 August 2010 (UTC)[reply]

Hmm, here what I found: Of the companies under the Direct Selling Association, 99.6 percent of sales involved some form of multi-level marketing compensation in 2009, according to the DSA website. The distinction really seem negligible, but I'll let others have their opinion. —CodeHydro 12:37, 30 August 2010 (UTC)[reply]

Amway back in the 1970's said that there was a multi-level form of direct selling ("Person to person" sales plans... "dream" opportunity or business nightmare? LIFE Feb 27, 1970). "Why Direct Selling No Longer Works" gives an insight to the ultimate decline of direct selling--the long tail method makes such a business model ineffective to moving products to consumers at the lowest price possible.--BruceGrubb (talk) 09:28, 2 September 2010 (UTC)[reply]

Agreement. They are one in the same. One is just newspeak for the other. Plenty of sources available. What more do we need to merge these two? Micahmedia (talk) 03:30, 3 September 2010 (UTC)[reply]

Nonetheless, I must say that there are very very few Direct Selling companies that do make single-level marketing sales. Perhaps adding a section in the direct selling that describes both single and multi level marking, with clear indication that direct selling involved multi level marking in the vast majority of cases, may be an easier solution than merging... just to give the 0.4% of single-level sales a voice without directly associating them with the negative connotations of pyramiding. What do you guys think? —CodeHydro 21:36, 3 September 2010 (UTC)[reply]

Unless anything is found saying this that is both recent and reliable I say eliminate the direct marketing article.--BruceGrubb (talk) 17:11, 17 September 2010 (UTC)[reply]

I do quite a bit of work with the direct selling industry, and I can tell you that combining the "direct selling" and "multi-level marketing" (MLM) pages would be a mistake. Direct selling is a sales channel (or product distribution method), comparable to traditional retail outlets, internet shopping, and the like. MLM is a compensation system, more analogous to bonuses, commissions, profit-sharing, etc. While many direct selling companies employ an MLM compensation system, not all do. The two terms are simply not synomymous. —Preceding unsigned comment added by DCFlyer23 (talk • contribs) 18:36, 17 September 2010 (UTC)[reply]

Sadly we need a realible source that tells us this. So far the majority effectively say they are the same thing.--BruceGrubb (talk) 07:25, 22 September 2010 (UTC)[reply]

They are simply not the same thing in a number of important ways. The door to door vacuum cleaner salesman is involved in direct selling. Furthermore, given the size and growth of the network marketing industry, and the diverse issues associated with it, it deserves its own presentation, though the current page stinks due to blatantly prejudiced editing. --Vejeestu (talk)

"Direct Sales vs. Network Marketing Understanding the difference will help you determine which opportunity is the best fit for you. By Michael L. Sheffield | May 19, 2003

Many of us who make our living from this arena still debate what the difference between network marketing and direct sales is. Even so, the vast majority of experienced network marketers would define these terms this way.

Most experts would agree that network marketing is a part of the direct selling concept where products or services are offered on a one-on-one basis and sold directly by the salesperson to the consumer. However, the two approaches offer very different benefits to the salesperson.

Direct sales companies are known as "seller-based," which means they give more income to the distributor when he or she makes a sale at retail. Direct sales companies usually market higher-ticket, one-time-sale, durable items such as air and water filters, cookware, art, home accessories, etc. With the direct sales business approach, the majority of the available profit designated for the salesperson's commission goes to the person who makes the retail sale. That person usually earns a significantly higher percentage of the designated sale commission than does the sales management that may be supervising his or her work.

Unless they have been appointed as sales managers, successful direct sales people are paid based on their personal sales rather than on building an organization of other salespeople. And since most products marketed by direct selling companies tend to be durable goods rather than consumable goods, there usually is limited potential for residual income. Obviously, there are exceptions, such as the residual income experienced in insurance sales, but usually when the sale is consummated, the salesperson is moving on to the next person and potential sale. Immediate commission checks are usually higher than in network marketing, so if you want quick money, direct sales is your ticket.

If you want to build a long-term residual income, however, you should consider network marketing. Network marketing distributors still sell, but the sales process usually begins with their "warm" market of friends and relatives. Network marketing companies typically offer retail commissions that are much lower, since more of the available commissions are directed toward bonuses paid to various upline management people in the sponsor tree.

In turn, you can also sponsor a downline of distributors that not only sell but also consume products, making them your customers as well."

MLM you must: pay to join, you can never make more money than the person 'above' you and products are not sold to the general public eg no advertising through media, need to buy 'through' someone or have membership.

Direct Selling companies do not usually do any of these and generally work in with larger companies that use it as a suplement to the rest of their marketing/advertising eg launch a new product through media advertising, then making use of a direct sales company to follow up. —Preceding unsigned comment added by 118.93.237.58 (talk) 08:03, 18 October 2010 (UTC)[reply]

"you can never make more money than the person 'above' you" - This is patently untrue, an unreferenced opinion with no basis in fact. I know of many cases that contradict this statement. It is plainly evident that much of the editing of the network marketing page is driven by a need to control the subject rather then allow a balanced presentation. Vejeestu (talk) —Preceding undated comment added 05:56, 20 October 2010 (UTC).[reply]