Network marketing is usually broken into two different opportunities, multi-level marketing (MLM) and direct sales companies. Multi-level network marketing companies usually offer reasonably priced products and services that have a short life span and are typically purchased more than once by consumers. This form of marketing relies on more referral based sales and often involves selling people on the idea as well as selling the actual product or service.

MLM vs. Direct Sales

Direct sales companies typically offer higher priced products that are usually only sold once. In essence, this is telemarketing which involves calling potential clients and selling them on a product. This form of sales provides higher commissions than MLM but also bases that commission on sales alone rather than a combination of referrals and sales.

How Does Network Marketing Work?

Networking may require more time and effort than other work at home opportunities but it can also offer greater rewards. By leveraging employees that work at home, the company is able to spread the word about their product or service much faster and more efficiently. A lot of these sales do rely on word of mouth; after all aren't you more likely to purchase a product your friend or family member recommends?

Although this may sound like a typical sales position it is different than the traditional sales method. While the task of selling a product or service will be involved, what a network marketer is really doing is recommending products that they like and personally use. This is a very effective type of marketing and companies are always searching for positive testimonials.