What’s the difference between network marketing and network building?
I was in a discussion with a Chartered Accountant yesterday who was trying earnestly to understand the difference between network marketing and network building. While he thought it to be a play on words, I said they’re as apart as Tax Planning and Debt Restructuring. Now that was on the spur of the moment but my idea was to get across the fact that they’re totally different entities and any attempt at not trying to understand would demean this huge multifarious discipline in the space of marketing.
Now just as debt would figure in tax planning, network marketing figures in network building. So does MLM and so does network distribution, franchising and private franchising. Network building would be the superset (like finance, in the analogy) under which any type of network is created and classified. let’s look at them one by one:
MLM: The traditional multi-level marketing system that has a tiered approach to enable people on a network to earn money through sales of product and distribution of commissions thereof.
Network marketing: A relatively evolved mechanism of MLM involving various network structuring strategies (not just a binary or matrix model) and modular constructs for leadership development and independent business ownership.
Network distribution: The focus here is not as much the network structure as is the distribution (as opposed to personal sale) of product. This is a system that manufacturers can leverage in the alternate economy, while network marketing and MLM are systems they would need to own.
Franchising: This is where individual franchise owners partner with manufacturers/service providers to follow a duplicatible system to enhance product penetration in the marketplace.
Private franchising: This combines the empowerment model of independent business owners in network marketing with the systemic cookie-cutter approach of franchising.
Network building not only covers all of the above but – in the extended sense of marketing – spills over to PR, and Rotary Clubs, Industry Associations, Action Groups and the like are but manifestations of the same without a commercial intent.
Network marketing, network distribution and private franchising are the subsets in which individual sales and commissions are not key, and network volume is the driver for monetary distribution. However since network marketing and MLM are the two most popular and percolated bits of jargon in the network building industry, through this blog I usually maintain network marketing as the standard while referring to network building per se.
Related websites
- The Secrets to Succeeding in Network Marketing Offline and Online: How To Achieve Financial Success Selling Network Marketing Products And Services « Internet Marketing – Elmed.net
- With Network Marketing Opportunities, Lead Generation Begins Your Efforts | Ezine Hippo
- Is Network Marketing Possible in the 21st Century?
- Effortless And Free Network Marketing Leads With Articles | Uber Articles
- Setting Goals To Accomplish Your Network Marketing Plan | Business Wealth Job Creation Personal Wealth Systems
- Create Personal Wealth Beyond your Small Business, Part 3 | Business – Commercial – Trade
