Understand the difference between MLM and Network Marketing

Network Marketing opportunities are abundant in the market and is rapidly catching up with people who used to shun it before. Network Marketing is legal and has high potential to earn you a lifetime of passive income. All you need is perseverance and the belief in the system. More about the traits of the network marketer will be discussed later. Here, the topic of discussion is Network Marketing versus MLM.


Network Marketing is slightly different from MLM (Multi-Level-Marketing), if you ask me. Although MLM and Network Marketing terms are used inter-changeably, there is a little difference between these two structures of business. In terms of tier structure and in terms of earning potential, Network Marketing is a better opportunity. What is the difference between Network Marketing and MLM?

Multi Level Marketing, according to me is a tiered approach where as more and more people join the MLM companies, the more and more the up-lines and initial sponsors earn. This means, it is best if you actually join the first batch or the top tier. Otherwise, you will end up with a lot of effort and little money.

Network Marketing opportunities are slightly different from MLM opportunities. In Network Marketing, you are in charge of your business and your sponsors are like your investors. You only share a percentage of the revenue with your sponsors, just like you do in any normal business. Wouldn’t you pay your shareholders their dues? Wouldn’t you split profits with your partners?

Similarly, in Network Marketing, you share a percentage of your revenue with your sponsors for introducing you to the Network Marketing opportunity and helping your learn the ropes and teaching you how to work the system. It is possible for you to earn more than your sponsor in Network Marketing while in MLM, the lion’s share always stays at the top.

Hence, learn your Network Marketing opportunity well and analyse the payment structure and the commission hierarchy before plunging into the business. Any business which gives you less is not worth pursuing. Any business that gives you more is worth trying.