Wednesday, December 19, 2007

Direct Sales Vs. Network Marketing

Do you know what the fundamental differences between Direct Sales & Network Marketing?
  • In Direct Sales, the model is based on a few people doing a lot. In Network Marketing, it’s exactly the opposite; a lot of people doing a little bit each.
  • Imagine that you have a product and you want to sell $1,000,000 worth over the course of one year. In the conventional Direct Selling model, you might hire a sales force of 100 people and impose a sales quota of $10,000 per person — 100 x $10,000 = $1,000,000
  • In Network Marketing, we simply reverse the numbers to achieve the same result. Here, we have 10,000 people, all responsible for only $100 each — 10,000 x $100 = $1,000,000
  • This is exactly what J. Paul Getty was talking about when he said, “I’d rather earn one percent off the efforts of 100, than 100 percent off the efforts of one.”

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