MLM and network marketing: difference?

[Lindsay]

Maybe it's simply semantics, but multi-level marketing known as MLM sounds like it focuses on the downline aspect of network marketing. If someone is paid for multiple levels of recruits as the name suggests, the main incentive would be to recruit more people instead of selling. Isn't selling what distinguishes legitimate network marketing companies from MLM ones?

[Nordic wave]

Personally I don't think there is a difference between MLM and network marketing, they are just different names meaning the same thing.

The main reason the business plans are different in MLM companies, is because the product and the marketing needs of the product.

Products such as Avon or Oriflame are party plan products and impulse buy, hence many distributors do not bother creating a network, because they make enough money with return sales and party planning. Also, I believe the network is created wide rather than long.

However leaders who understand the power of the MLM / Network system create networks. Companies such as Talk fusion (Video emailing and online business marketing toolbox) have a product which allows for a left and right leg network / MLM business plan, giving the customer or associate the option of being a passive user of the product or an active networker. The associate can only put a 2 new associates on the left and right leg directly below themselves, then any additional associates are put below them. This system does help to advance the network, however many in the network are passive associates users.

So, as I said from the start the product defines the mlm business plan