Network Marketing & MLM - What is the Difference or Is There One?

So often I hear the terms network marketing and multi-level marketing (mlm) interchangeably. In fact, I have interchanged them myself. But, as I became educated, I learned they are not necessarily the same.

What got me thinking about this and why does it even matter? I was at a networking meeting where the guest presenter was promoting her business. Throughout the course of the afternoon she made it a point to say her company was not network marketing or mlm - it was simply a club where individuals could buy their products wholesale. Since many people are turned off when they hear the terms 'network marketing' or 'mlm', the distributors in this company promote their business as a savings club. The problem is you have to join the company as a distributor to even purchase the product. Also, this company pays on multiple levels. Well, by definition, a business model that pays on more than one level is multi-level marketing. Further, since network marketing is defined as a distribution channel which allows people to share in the profits, this company is clearly a multi-level, network marketing company.

In both multi-level marketing and network marketing, individuals are given the opportunity to sell products/services to the end consumer and share in the profits. Instead of paying the celebrities for product endorsement, companies pay that money to the distributors who recommend and promote the products to their networks.

With the proper skills, multi-level marketing can create royalty or residual income. On the other hand, creating residual income may not even be a possibility with a network marketing company that is not mlm.

Here's the difference.


A direct sales company is a network marketing company. In direct sales, someone sells a product and gets paid a one-time commission. Generally, to receive another commission, they have to find a new customer and make another sale (unless it is a consummable). This method is often used for big ticket items or non-consummable items. Home parties is a good example of this type of compensation. Also, if the distributor only gets paid on his personal sales, it is strictly network marketing. However, if a company pays a commission on multiple levels of distributors, then it becomes multi-level marketing as well.

A company can start out as mlm but change to network marketing when they get in a money crunch as recently happened to a well-known company.

As mentioned, both network marketing and multi-level marketing are business models where goods/services are distributed to the end consumer. However, in network marketing, the company pays the commission on one level only. As the name implies, in multi-level marketing (mlm), commissions are paid out on various levels, usually predetermined by the company. Network marketing is a lot like a job, you start from scratch each month because you produce linear income. You get paid on your individual effort only and the moment you stop working, the income stops. In multi-level marketing, you get paid for not only your personal sales, but on the sales of others. In this business model, if you do the work right, you can get paid forever. Your royalty (or residual) income can actually increase from month to month (because you are being compensated for the work of your entire organization). In mlm you can eventually work your way out of a job and into enjoying '7-Day Weekends' because when you stop working, the income will continue to increase.

In a nutshell: Every multi-level marketing company is a network marketing company. However, some network marketing companies are not multi-level marketing. The difference is determined by how many levels are paid.

Be empowered to prosper!

Irma L. White
A Mentor with a Servant's Heart

Questions why you haven't succeeded in mlm? The answer is in this book.

If this information was helpful, click here for more free network marketing training, strategies, tips and resources to help you reach your business goals.

OH MY GOSH! What Happened Here and Could This Happen to You?

My good friend forwarded an email he received from his former network marketing company. He was very relieved that he found out the truth about network marketing in the nick of time otherwise he would have been quite upset about the newsflash he received from the CEO of his former company. After you read it you will understand why. Although this is the exact letter he received, the name of the company is changed to protect the innocent.

Beginning of Newsflash


I would like to take a few moments to express my sincere and deep gratitude for your loyalty and support over the years. Company XYZ has always held and will continue to hold a large part of my heart.

Due to economic issues at this time, it has come to my realization that we are no longer able to offer the network marketing compensation model for our distributor family. It is with deep regret that I am announcing effective May 1, 2009 that we will suspend the enrollment of new distributors into our current compensation models and only pay commissions for any Fast Start Retail orders and/or distributor re-orders according to the existing compensation models of each respective company. All commissions for April 2009 (including Retail Fast Starts) will be processed by June 15, 2009 to allow for our generous return policy to process. Commissions for May 2009 will be processed by July 15, 2009 at our current compensation model of each existing company.

I realize that we need to take the lessons of this sour economy to heart and offer a true opportunity to any individual to earn a few hundred extra dollars or more per month on the simple philosophy of offering great products to individual consumers. Therefore, prior to June 1st 2009, I look forward to offering an opportunity to our current distributor base to continue marketing Company XYZ products through an affiliate/direct sales model that will pay one level of commission. This program is similar to the already successful distribution program through the Company XYZ retail compensation, but will allow us greater flexibility in meeting the financial decision needs of our consumer while allowing the continued financial gain of our distributor base.

I realize many of you may have questions and concerns, but please keep in mind that my goal is to keep you fully aware of any and all issues moving forward. I personally look forward to making our affiliate/direct sales program available to you on June 1st that allows any individual to earn income from the sale of products alone. Stay tuned for more information regarding that program.

Thank you for your patience and support.


End of Newsflash

Does that seem harsh? It seems very brutal to me. But, it is not surprising. It happens often in the network marketing industry when pillar No. 1 is missing -- company management with integrity & mlm experience. Do you see what has happened here? Many distributors have wasted the last four years building a business they will no longer receive the residual income they worked so hard to create. The company on the other hand gets to keep all the customers they introduced to them. This company had a bottom line only focus and their motto is company first. However, if the focus had been distributors first, this would not have happened.

How would you feel if you received that newsflash? Better yet, how would you like to make sure that never happens to you? It could have easily happened to my friend but he chose to get educated about mlm and decided to read the ebook, Success in 10 Steps. This generic network marketing information saved him from experiencing that heartache.

Could this happen to you? Not sure? If not, do like my friend. Start your network marketing education by first reading the Success in 10 Steps Ebook because this type of network marketing company behavior is absolutely predictable and could happen to you if you don't know how to avoid it.

Be empowered to prosper!

Irma L. White
A Mentor with a Servant's Heart
404-604-6947 ~call anytime~

If this information was helpful, click here for more free network marketing training, strategies, tips and resources to help you reach your business goals.

How to Stop Hopping Around Like a Rabbit

I just love network marketing. It gives the average person, you know, the non-singer, non-movie star, non-athlete type, the best chance to earn the residual income like the stars. Thus, I've been in the industry for many years. No, I wasn't always successful but I stuck with network marketing until I found what works and what doesn't. Even though I've been with several companies, I didn't hop around like a rabbit because I knew this - it takes time to build a home business.

What I didn't realize, however, is with some companies and some programs, no matter how long you stick around you will never produce residual income- it is designed that way. (I'll tell you how to avoid that situation at a later time.)



As I mentioned, I didn't bunny hop so it amazes me when I receive emails from the same people who, on average of every three months, introduce me to the latest, greatest and best thing since slice bread. They feel that every pre-launch opportunity that comes along is the one. They feel that if you don't get in on the ground floor you will miss the opportunity of a life-time. This strategy is an attempt to create the fear of loss and it works on so many people. Why?

Because people who have not read Success in 10 Steps don't know how to evaluate an opportunity. But most people who do read it, learn how to systematically analyze the network marketing opportunity and know before they join if it is a viable business opportunity or if the so-called opportunity is another time-waster. But some people (like the people who send me those emails) just don't take the time to read the book so they continue to hop around like a rabbit. There are many problems with that - two of which are these: 1) they eventually give up on their dream because they feel network marketing doesn't work and 2) the people observing this behavior also feel network marketing doesn't work so never explore the opportunity.

If you're tired of hopping around like a rabbit, or if you've been attempting to create additional income via your home based business with little to no progress, find out why your lack of success is not your fault by clicking here to receive your free copy of the ebook, Success in 10 Steps.

I can assure you from first hand experience, network marketing does work for the average person.

Be empowered to prosper!

Irma L. White
A Mentor with a Servant's Heart

If this information was helpful, click here for more free network marketing training, strategies, tips and resources to help you reach your business goals.

Are You Simply a Coach or Are You a Mentor?

I receive tips and training for networks marketers from my mentor, Tom 'Big Al' Schreiter that I thought I'd share with you. The following was taken from The Big Al Report:

Consider these definitions.

To be a coach, you don't have to know how to do what you are coaching. Many coaches simply listen to their distributors and tell the distributors they already know what to do and how to do it. As coaches, they simply hold the distributors accountable for their actions.

These coaches don't have to be good sponsors, good presenters, or good leaders. They simply hold the distributors accountable, and attempt to motivate them into action by talking about their "Why," etc.

To be a mentor, you should already have the skills the distributor seeks to learn. In this case, the distributor does not have certain skills and experiences, and seeks the answers from the mentor. The mentor is not responsible for motivating or holding the distributor accountable. The mentor assumes the distributor already is highly motivated and will put the lessons into action.

To be a mentor, you must first master the skills the distributor seeks. And if you master the skills, the distributor seeks you.

And what if the distributor is not self-motivated?

Well, the distributor won't be seeking you out.

Are you simply a coach that talks a good talk? Or are you a coach that motivates distributors to take action? Are you a mentor that has mastered skills and can pass them on to self-motivated people?

Or, are you simply a lousy sponsor that recruited a distributor and quickly moved on to finding your next new distributor?

Be empowered to prosper!

Irma White
A Mentor with a Servant's Heart
404-604-6947

For more Big Al tips visit fortune now.

If this information was helpful, click here for more free network marketing training, strategies, tips and resources to help you reach your business goals.

How is Eating Crawfish Like Network Marketing?

I recently visited my hometown of New Orleans, La. The first thing I did when I arrived was get crawfish. In fact, during the week, I ate crawfish as often as I could because I haven't found a place in Georgia with good crawfish.

I grew up eating crawfish and know how to eat them so. There are a couple of ways to eat them. You can suck the head and pinch the tail -- quickest way or you can suck the head and peel the tail -- much slower. And, you can just simply eat the tail without sucking the head. As I said I grew up eating them so I am a crawfish connoisseur. Of course, I use method 1 and so does my son, Kenan. On the other hand, his friend, Damon, uses method 2. Once Kenan and Damon were eating crawfish -- Kenan doing method 1 & Damon method 2. Watching them was their friend, Steve, a non-native New Orleanian who had never eaten them and didn't know how. He found it fasinating to watch them. They both started with the same amount but, because Kenan pinched the tail and Damon peeled them, Kenan was finished much sooner. But, because Damon didn't stop, he eventually finished his.

Now there is a wrong way to eat crawfish and that is to leave on the shell. Eating them with the shell on would be very frustrating and the crawfish experience woould not be pleasant. You may think it is easy to figure out how to eat crawfish, but Steve didn't have a clue until he was shown how.

How does that relate to mlm? Well, there is a right way and a wrong way to build a network marketing business or mlm business. The right way is to build relationships which entails getting to know people: finding out what they need and in turn mentoring, training and coaching them. In other words, SPONSOR them.

The wrong way is to make a list of family & friends, attack every who comes within 3 feet of you, etc. This is the method people use who have never been shown how to build a business. This is the method that creates a mess. It messes up relationships (family & friends hate to see you coming) and it sometimes messes up finances because of doing things like buying worthless leads, etc. This is the method recruiters use to enlist people into service.

If you desire to learn how to eat crawfish meet me in New Orleans and we can have a good ole time. But, seriously, if you have not figured out how to build a solid residual business that you can leave to you children and children's children, the mentoring for free team and I can teach you the right way - the way that builds lasting relationships - and you can decide which method best suits you. You can take it slow -- like Damon -- or fast -- like Kenan. Either way, if you stick with it, you'll get to the finish line and have a pleasant experience in the process.

Be empowered to prosper!

Irma L. White
A Mentor with a Servant's Heart
404-604-6947 (call anytime)


If this information was helpful, click here for more free network marketing training, strategies, tips and resources to help you reach your business goals.

What Mentoring for Free Has Done For Me

Have you ever done anything that caused you a lot of grief because you acted out of emotion? Well, I know I have. Those emotional decisions were sometimes made because I wanted the info presented to me to be true and I didn't take the time to look at the facts or I felt I would miss out on something if I didn't make the decision immediately. But, so often those emotional decisions caused me much grief. Or, maybe it didn't cause grief but I surely wasted time and felt frustrated, especially in network marketing. In network marketing Isaw the potential to live an abundant life, the life of my dreams so I kept chugging along. Then, one day I stumbled upon a book called Success in 10 Steps. Like most people who read that book I found out why my lack of success was not my fault. I found out that it is possible to succeed in the industry IF I was coachable, If I had a mentor and a team of people helping me, If I was in a 5 pillars company, If I had products that helped people, If the company had a system of duplication that anyone could follow. The info in that book was eye-opening & life-changing because the info was based upon proven facts. Am I glad I found the info because there is no more frustration. And, because of the team of mentors, I have identified and eliminated the time wasters and have learned and am still learning how to build a solid business.

Oh, and did I mention, the mentoring I received was and is FREE to everyone? If you can relate to where I was, this can be your turning point. Making the right decision today will save you years of failure & frustration tomorrow. Click here to start your free mentoring and coaching.

Be empowered to prosper!

Irma White
A mentor with a servant's heart


If this information was helpful, click here for more free network marketing training, strategies, tips and resources to help you reach your business goals.

Six Steps To Guarantee Success in Network Marketing

When I was first introduced to network marketing I saw it as a viable opportunity for the average person like me to make an above average income. But, I didn't have a clue as to how to generate that income. Not until years later -- not until I found the Mentoring for Free System. Here is what I learned in the meantime. Anyone who has or becomes the following six things can almost guarantee their success in network marketing. The average part-time person can accomplish this in 2 - 10 years - depending on individial effort.

1. Be coachable. Just like any championship team, no matter how great the players are, they need coaching. Coaches help you to improve your strengths. Coaches help you focus.

2. Have a mentor and a team of people helping you. These people need to be accessible. I am a mentor and have a team of mentors helping me. My mentors have mentors. I can provide that to you as well.

3. You must belong to a 5 pillars company.

4. You must have and know how to use your duplicable system – mentoring for free is the system I use. Network marketing is not one person sponsoring 100 people, it is many people sponsoring two or three people each.

5. You must be a student of the industry – we can help teach you what is legit and what isn't; what works and what doesn't. We provide free live and interactive training 10 times weekly. In addition we have archived training calls.

6. You have to practice self-development. We also have live interactive calls each Wednesday where we discuss a chapter of Think & Grow Rich. These calls are life changing. Many limiting beliefs are brought to the surface. The same can happen for you.

Whichever one of the above you need help with, we can help. Most people who participate in Mentoring for Free save themselves years of failure & frustration. But some don’t take the time to read it and waste a lot of time doing things that will never work.

So, make the decision today and save yourself years of failure and frustration tomorrow. Click here to claim your free ebook, Success in 10 Steps. written by my mentor, Michael Dlouhy.

Be empowered to prosper!

Irma White
A Mentor with a Servant's Heart
404-604-6947


If this information was helpful, click here for more free network marketing training, strategies, tips and resources to help you reach your business goals.