comparative study of direct marketing and 

multi level marketing

Multi-level marketing

Multi-level marketing (MLM) is a marketing strategy in which the sales force is

compensated not only for sales they personally generate, but also for the sales of
others they recruit, creating a down line of distributors and a hierarchy of multiple levels
of compensation. Other terms for MLM include network marketing, direct
selling, and referral marketing.

Direct marketing

Direct marketing is a form of advertising that reaches its audience without using traditional formal
channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the
consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street
advertising.

Introduction

Of

Multi-level marketing and direct marketing

A lot of Online Businesses today are comparable to the MLM concept. The truth is, website
companies thrive from the MLM business structure by using referral system. Just look at
some of the paid to click programs, affiliate programs, survey programs and a lot more. You
refer more, the better chances you earn more.

Multi-Level Marketing or MLM, is now the most used system by many companies to expand
their business without too much cost. By using this method, companies maximized their
profits by spending less on advertisements and over pricing their products value. It can be
implemented by binary downline system or the traditional MLM recruitment base.

Almost 60% of today's overall businesses around the globe are now MLM based. Most of
these companies are now online and operating worldwide. But what separates real online
business MLM from traditional MLM (product selling) business? Let me site some of the
benefits why you should try MLM online business.
Direct marketing is a form of advertising that reaches its audience without using traditional formal
channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the
consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street
advertising.
Direct Advertising is a sub-discipline and type of marketing. There are two main definitional characteristics
which distinguish it from other types of marketing. The first is that it sends its message directly
to consumers, without the use of intervening commercial communication media. The second
characteristic is the core principle of successful Advertising driving a specific "call to action." This aspect
of direct marketing involves an emphasis on trackable, measurable, positive responses from consumers
(known simply as "response" in the industry) regardless of medium.
If the advertisement asks the prospect to take a specific action, for instance call a free phone number or
visit a Web site, then the effort is considered to be direct responseadvertising.
Direct marketing is predominantly used by small to medium-size enterprises with limited advertising
budgets that do not have a well-recognized brand message. A well-executed direct advertising campaign
can offer a positive return on investment as the message is not hidden with overcomplicated branding.
Instead, direct advertising is straight to the point; offers a product, service, or event; and explains how to
get the offered product, service, or event.

Review of literature

MLM vs. Consumer Direct Marketing Business Opportunities

1fb 1999

We've all seen them before - businesses that promise great wealth and prosperity with a
minimal amount of effort. Did you know that only 1 out of every 1,000 home-based
businesses last longer than 5 years? So what REALLY sets all these companies apart, and
which method has the least risk for everyone?

First, let's take a look at a way of marketing that has gotten SO popular (and many times
out-of-hand) - Multi-Level Marketing. When you think of multi-level marketing, you may
think of overbearing sales people who begin by bothering their family and friends, and
resort to manipulating others into buying lots of inventory. You might also imagine a get-
rich-quick scheme with promises of great wealth through very little work. Finally, you may
envision business schemes that lack a compelling product, but hype up the promise of big
incomes.

Now, let's take a look at what a few companies are turning to - Consumer Direct Marketing.
What's the big difference? Well, Consumer Direct Marketing typically redirects the funds that
would typically be used for advertising, multiple shipping costs, various middlemen, and
several distribution channels into spending for higher quality ingredients, product
innovations, and profit sharing with customers. The result of this is a new and interesting
method of delivering quality, low-cost products to families around the world - and then
SHARING THE INCOME with those families.

The companies that are truly heads and tails above the rest are all turning their attentions
to the important aspects of Consumer Direct Marketing. The true result is less risk for the
business-builder as well as the consumer, because there are no inventories to buy, no
financial risks, and no hype. EVERYONE, people referring the products, and customers alike,
only buy what they need each month. And of course, anyone who refers someone else earns
a commission from the purchases of the customers they refer.

Maybe the neatest thing about this almost "laid-back" method is that the majority of
customers buy each month without any interest in receiving commissions, and when you
have customers that really love the products and aren't pressured from the vast majority of
MLM companies out there, that means true residual income - income that you'll receive the
rest of your life - your retirement, or your children's college education!

If you're interested in a 20-year-old Consumer Direct Marketing company that might be a

great opportunity for you and your family, please don't hesitate to contact me, and I'd be
happy to share my experiences with you.

Please email me at: info@familywellness4life.com

Or visit my website in the meantime: http://familywellness4life.com

Tip! Business cards internationally are a means of representing one's business contact details. Though good business
etiquette promotes business opportunities it is not the only deciding factor in a business relation.

Hayley Keller is a home business builder who has researched hundreds of home-based
business opportunities before understanding the value of businesses with solid foundations
and track records.
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