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A question we get asked from time to time is, So what is the difference between: MLM home business, non MLM business opportunity and network marketing

First of all, anytime you have an online business, or a product or service that you are marketing via a network of people, it is network marketing - it is simply moving a product or service through a network of people - whether they are distributors, other team members, or customers...

There are, by far, more mlm or traditional network marketing businesses floating around, but if you are looking for a way to create financial success within your first year, you may be looking for a non mlm business opportunity...
Typically, what happens in a traditional mlm marketing plan, is to get your team or downline built and start making a residual income off their monthly autoship - which is the way most mlm companies move their products...In order for everyone to get paid, product must be moved!

With an mlm opportunity, you are dependant on the efforts of your downline and whether or not they stay on the monthly autoship, will determine the size of your check...which gets sent to you by the company. So you do want to read the policies and procedures of the mlm companies and do your research on their reputability...it is best to find one that has been in business for a couple years...

In a non mlm business opportunity - usually what happens, is you pass up part or all of your first or first two sales to your mentor, in compensation for training you and after that, the profits are all yours. Some call it the Aussie-1-Up or Aussie-2-Up.

So in reality , with a non mlm marketing plan, you get paid on your efforts and how well you train your team. Once you have your 'training sales' done, every person that joins your team will now owe you THEIR first or first two sales...which can then turn into four, which turns into eight, etc...

This type of income is often referred to as exponential income instead of residual income... The cost to get involved into the non mlm business opportunities is often higher than the mlm...and the products are usually of greater value.

In some cases, because it's a direct sales model, the commissions made are as high as 80% versus the 3%-10% in traditional mlm...Instead of making $10 and $30 commissions, you quite often make anywhere from $500 - $10,000 per transaction... So basically, the main differences in a non mlm opportunity are:

•You get paid directly by your client instead of by the company...
•You do not profit from a downline once their 'training sales' are done...
•The commissions are higher and so is the investment - in most cases...

I personally believe that there is success to be had in both compensation structures...typically, it happens more quickly within the non mlm pay plans because of the higher commissions, especially if you are a go-getter and highly motivated individual!

Pedro Martinez is an established Internet Marketing Advisor who has been helping hundreds to build successful Home Internet Business for over 10 years. To learn much more about how you can start an Internet Home Business stop by http://www.thebizfromhome.com

Article Source: ArticlesBase.com - Non MLM Business Vs MLM Business