Tupperware by SherylYou probably have an image what Network Marketing is. For you Network Marketing is a bunch of housewifes selling lotions and potions where you sell to everybody you know and earn only pennies for your hard work.

In reality Network Marketing is the opposite of all that. There different types of Network Mmarketing and I will explain the most common two. Direct sales and MLM.

So what is the difference between these two??

Multilevel Marketing or MLM, is a system for selling goods or services through a network of distributors. Most of MLM systems are pyramid in structure, which means that you have one director above all other distrubitors. The typical Multilevel Marketing program works through recruitment. You are invited to become a distributor, sometimes through another distributor of the Multilevel Marketing company's products and sometimes through a generally advertised meeting.

If you choose to become a distributor with the Multilevel Marketing company, you'll earn money both through the sales of the MLM's products and through recruiting other distributors, by receiving a portion of the income these distributors generate.

The distributors that you sign up with your Multilevel Marketing plan are called your downline. The distributor that originally recruited you is called your upline. With MLM you will have somebody above yourself all the time and that is the biggest downsize of MLM when you compare it with Direct sales 2up compensation plan.

Successful well-known MLM businesses include Tupperware, Avon and Mary Kay.