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whats the difererence between a traditional company and a network marketing company.?

I've heard of network marketing a good way to develop a second income. I see some of these companies are listed on stock exchanges or owned by larger companies. I never quite got what the difference was between what they did and what a traditional company does. also is it me or does the industry have an image problem?

Public Comments

1. most of the time a network marketing company is based on someone recruiting you and you having to buy into the company with quite a bit of money to start. But also, people call this a pyramid but ask yourself this question.... Isn't every job a pyramid? look at the government...Pres. then the vice pres. then the speaker of the house and so on...or the ceo the coo, then the vice pres, you see what i mean? as far as the image problem, yes it does have a major problem (see my first writing) too much money up front, and then you usually have a garage full of water filters, or bowls, or vitamins, or soap. Look out, look for a Primerica rep. That is a very very good legit COMPANY to work WITH. I hope I helped you.
2. MLM is not a traditional business in any sense. I have been apart of many. The company itself is traditional in that it makes or purchases product for resale. However the method of distribution is not traditional. As a distributor you do not own your own company. You own nothing but the right to sale products for the parent company and they will pay you a commission. You can earn commission on people you sign up sort of like a traditional sales company with a manger over a sales team. But it is NOT a traditional company from the distributors perspective. You will get a LOT of disagreement on this, but just ask them a few questions like these... How much did you make last year? How much did you spend last year? Why do 97% to 99% of people in an MLM fail? If you own your own company, how to you change your vendors and suppliers? If it's your own company, why can the supplier shut you down? The answers are pretty simple. 99% of people never make a dime in an MLM. Most loss money. Why do 97% to 99% lose money in an MLM? Because it's based on recruiting a downline. Most people do not have the skills to do that. In fact... 97% to 99% of people do not. Most MLMs are not based on selling products. Most are based on recruiting a downline and selling training material. Most MLMers do not know that makes it an illegal pyramid scheme. I'd guess that 99.999% of MLMs are not aware that federal law requires that 50% of ALL products from an MLM be sold at retail to customers... not through a downline. It's the LAW. I never heard this from my upline in Amway, Melaleuca (I still can't spell it), Nikkien, Vaxa, etc. But it is the law and it's why so many of these companies get in trouble. A good way to find out more information about MLMs is just doing a Google search for the MLM of your choice and add lawsuit to the search criteria. You will see what I mean. I would personally suggest starting a traditional company that you actually have to take out a DBA or business license for. I have been running a successful one for 5-years, working about 10 to 20 hours a month, and making between $2K to $6K net per month (about $15K gross). In regards to an MLM, that would put me in the upper, upper, .0001% of all MLMs. Sorry for all the negatives, but you will not hear the negatives from anyone in an MLM.
3. Network marketing actually ends up as your own business. I work with one that is on the NYSE. The man above is right. You will not hear negatives from people who are involved in network marketing because it works for us. It is not for some people, just like some people cannot be musicians or professional football players. It is hard at times, but so is any job you do. The industry does have an image problem because of the people who gave up which caused them to fail at the business. Most got involved with companies where you had to buy/store items. I did not make that mistake. Trust me, I am no salesman, but I love network marketing. Plus, it is something you do everyday, you just do not get paid for it. For example, if you see a good movie, you will tell a friend, but you do not get paid by the producer do you? It just depends whether it is right for you. Oh and one more thing, my "mlm" some states, like the one I live in, require a license.
4. You already got some great responses......and they all are right in some aspect. MLM's are turning around and the attorney generals are picking up the pace on identifying scams and legit home based businesses. The best advice I can give you is educate yourself and know what to look for. Below I've listed some sources to help you point out the good, the bad and the ugly. Take a look at what the experts say. MLM's have had a bad name in the past, but with the new economy (the information age) more and more people have to change the way they think. It's no longer go to school, get a good job and that job takes care of you for the rest of your life. Those days are gone, that was industrial age thinking. With the new economy comes great opportunity. Success begins with the correct information in the information age. Good Luck!!
5. The basic difference between traditional company and network marketing company is that, traditional company distribute it's product from traditional Chanel of dealer, stockists, distributors etc.. While network marketing companies distribute their products directly to customers and through customers to other people, by appointing them distributors or business owners or so. And for that, they pay this business owners commission. Network Marketing is a revolutionary way of creating wealth working part time from home. For more details about this industry keep visiting : http://www.kuldeepsanadhya.com/...