by Lon Lindsey

There is a difference between MLM (Multi-Level Marketing) and Network Marketing. MLM is done through a process of network marketing, but network marketing does not have to be MLM.

Let me explain. Multi-Level Marketing is a name that is used to designate a payout plan that is based on more than one level. Some would argue that a two level payout plan is not considered multi-level and some would say anything more than a one level payout plan is considered multi-level. Others would say a two level marketing plan is considered, simply, bi-level and any plan that pays more than two levels is considered multi-level. You will also hear terms like "uni-level" which designates it a one level payout plan or some unique extension of that. As far as I'm concerned, it really doesn't matter what we call it unless someone is trying to avoid using the "MLM" designation.

Regardless whether the pay plan is uni-level, bi-level or multi-level, networking is considered the approach or method to building ones "multi-level" business, thus the term "network marketing" which encompasses all, be it uni-level, bi-level, multi-level or any of several take offs to what is considered traditional multi-level marketing.

Why is "network marketing" considered the preferred approach to building a business? Because it's the smart way to build a business. It's what we call "working smarter rather than working harder". J. Paul Getty, the oil magnet, once said, "I would rather have 1% of the efforts of 100 people than 100% of one person." What he is saying is, he would rather teach one person and let that person teach one person and so on . . . . something we call "duplication" resulting in an exponential business growth creating exponential income growth potential.

Multi-Level Marketing, through a networking process, gives us the hope of building a huge business empire through a process of duplication resulting in huge incomes for the participants. That is the MLM part of "The Great American Dream" . . ."A Business For Everyone".

Some will say, MLM has gotten a bad name and maybe a bad rap. If this is true, it's not because the theory of MLM is bad, it's because some marketers have used it and abused it in such a way that some participants have a bad taste left in their mouths from a MLM experience. Because of this, the term "network marketing" is now the preferred term to use and in many instances you will see ads that actually state "THIS IS NOT MLM" which sends a message that MLM may not be good. A term that just recently has come upon the scene is "referral marketing." Referal marketing makes it possible to simply refer people to the chosen company as a way for them to get products without having to stock and inventory products with you being able to receive commissions based on your referrals. Because of new technology, it makes referral marketing an advancement to basic network marketing. I might add that if someone does have a bad taste left in their mouth due to a MLM experience, that does not necessarily mean the MLM program was bad; it could mean that the participant did not know how to go about building a MLM business.

In the past couple years, I have seen many creative marketing plans that stay away from designating themselves as multi-level . . . plans like "Binary", "Australian", "Linear" and there may be others which I can't think of at the moment. Regardless of the name, they all use network marketing as the approach to build their business.

How do I feel about Multi-Level/Network Marketing? I love it! I love the concept! I love what it can do! Multi-Level/Network Marketing can give a person hope! It can motivate a person to do things he/she thought they could never do! Multi-Level/Network Marketing can cause many sleepless nights because of ones own excitement. Multi-Level/Network Marketing creates a special bonding among other networkers/MLMers! Multi-Level/Network Marketing allows us the hope of "The Great American Dream" . . . Owning your own business!