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Network Marketing vs. Direct Sales

Which one is best for you?

by Kara Jankowski  |  7967 views  |  3 comments  |        Rate this now! 

2.) Sales quotas. A quota is a required monetary value of products that you and your team must sell each month. This varies widely and could be from $2,000 to $200,000 per month or more, depending upon your company and your performance level.

3.) Recruiting quotas. This refers to a certain number of people you must add to your team each month. They are your "downline," and you are responsible for training them and keeping them motivated and working. Your paycheck relies very heavily on the sale your downline makes. If they quit a month after they join, not only do you waste valuable hours training people who leave, you also take time away from building your own business.

Quotas can be very difficult to maintain over time. What if you have a family emergency? Or you're having a baby? What if you just want to take an extended vacation? That’s why we want a home business in the first place -- so we can spend more time doing what we really want to do.

Very often in direct sales, you have what is called a 2-up program. This means each associate’s first 2 sales go to their mentor for their assistance in training and closing their first few sales. With this business model, you get paid first for helping your new associates, rather than waiting years for them to build a team, just so you can earn pennies on the dollar.

When you’re bound by quotas, I can tell you the last week of each month is a gut-wrenching experience trying to keep your business afloat. You end up working your business out of the fear that you’ll lose what you’ve already built. That’s no way to motivate someone. It’s not fun and it doesn’t end.

Samples, Inventory, and Paychecks

In most network-marketing companies, you need to have samples to get your prospective customer interested in the product. Think these are free? Think again! You’ll likely have to buy catalogues, samples, pamphlets ,and other company literature to share with others. f you can believe it, these samples and catalogues will not count towards your monthly personal product purchases or your sales quota!

Besides samples, you’ll want to satisfy your customer’s need to buy right away, so you’ll be encouraged to have inventory on hand for them. So you have to pre-purchase products, before you even know if you’ll be able to sell them.

Then, you have to wait for your company to pay you. Let’s say you have a great month. You’re all excited with your progress. At month’s end, you usually have to wait two weeks for the company to process your payment, then another five days to receive your check in the mail. So you’ve worked your butt off for 30 days, only to have to wait another 20 days to receive your small percentage check.

About the Author

Kara Jankowski has been an entrepreneur for five years. Her passion is helping others find success at home by sharing her knowledge, experience and support. If you'd like to learn more about Kara, visit her personal web page at www.FollowALeader.com. If you'd like to learn more about Kara's business, please visit www.FollowALeader.net or call her directly at 603-664-3553.

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3 comments so far...

  • Nice Job! Approx. 80% of the NWM industry is fueled by women. Approx. 90% of the Internet marketing is fueled by men!

    There is a huge shift in the making here and your article is very timely!

    My friend Jackie Ulmer, whom I am sure you have heard of, well known 6 figure wahm in the party plan/direct sales industry published not more than two days ago a squidoo on this subject matter!

    You can find it on http://www.momsmakingmoneyonline.blogspot.com

    Flag as inappropriate Posted by Patricia Kagwiria Makhulo on 27th April 2008

  • Hi Maria - thanks for your comments! What you said is so true - you have to like the product you're marketing, or else what's the point?

    I'm in the education industry so of course, I'm thrilled to have such a quality product to offer - especially one that helps kids!

    Good luck with everything and take care,
    Kara

    Flag as inappropriate Posted by Kara Jankowski on 21st April 2008

  • Hi Kara,
    I know what you mean, husband spent 10s of thousands on product like Goji, Vemma, Mangosteen, noni, and amway many years ago, and to come to find out that they really didn't offer anything except a drink that was a berry. When I found Limu, and It worked for him I was amazed. Because of all the others didn't do much except cost money. I like this business, because the product does work, so when sharing it I share the product, not the business. If the product works you will share it. that is just my feeling. Soon I will see all the money he spent over the years back, but shhhh, he doesn't have to know...
    take care

    Flag as inappropriate Posted by Maria on 28th March 2008

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