Network Marketing vs Traditional Business

These days I can think of many reasons why a Network Marketing Business is a preferable option to traditional business. Like the overheads for one! Having been an owner of traditional businesses with huge rents and wage bills in the past, I personally do not want to go there again. In this post I  address the basic structure of Network Marketing, which is often misunderstood and the reasons I think it is the model of distribution of the future.

I should clarify what I mean by “a traditional business model”.
I am not concerned with the various entities we can run a business through – by traditional I simply mean there is a CEO at the top and there are employees. This could mean the corner store or a large corporation. There may also be many levels of management in there – or maybe just one.

Network Marketing is a model often called Multi Level Marketing and various other names. It is based on teams of people helping teams of people. It is word of mouth referral. There have been some misconceptions over time and some of these are still around today (I must confess to having bought into some of them in the past – purely because of my lack of understanding of the model).

One of the questions that still is sometime asked is “is it a pyramid scheme?” Of course the answer to that is no it is not as pyramids are illegal. Actually traditional business is really much more like a pyramid structure. It has a CEO at the top, usually earning the most all the way down to the most junior of employees earning the least. In Network Marketing the new rookie can earn more than someone up the ladder if he/she is prepared to work. It is a very fair system once you really understand it. I truly believe much fairer than traditional business. It can give everyone from any walk of like the opportunity to create real wealth for themselves and their family.

In traditional business you get paid for the level of work you do. Someone lower down the organization ladder seldom earns more than someone above them. This can be reversed in Network Marketing where to truly be successful you have to be a leader, not hold a position that assumes power.

Tom Peters, the author of In Search of Excellence, describes network marketing as “the first truly revolutionary shift in marketing since the advent of ‘modern’ marketing at Procter and Gamble and Harvard Business School over fifty years ago.”

Warren Buffett, Richard Branson and Donald Trump all have or do own network marketing companies.

Let me know what you think of Network Marketing as a model for the future.

23 thoughts on “Network Marketing vs Traditional Business

  1. les prosser

    Sue, you are writting some great stuff. Have a look at my site , we should maybe get closer together . By the way, you have a typo in your tags.. should be associate not as it is, regards les we are also friends of Jodie Thompson
    les prosser recently posted..MLM Pyramid SchemeMy Profile

  2. Sue Post author

    Thanks Les . I have seen your site in the past but will check it out again. Thanks for feedback on the typo. I am over to fix it now. I know Sharon from Profit Being You calls. Will get to meet you one day too I hope. Love to talk.

  3. Toni King

    Excellent post Sue,
    it’s great to see the benefits of a networking business laid out along side the alternative. A great piece of insight, especially for those looking for a new way. Everything indicates that it’s simply the way things are turning. Thanks for sharing 🙂
    Ps. Your commentluv doesn’t appear to be working.
    Most recent blog post:

    1. Sue Post author

      Thanks for the feedback Toni. Having had traditional businesses with lost of staff and overheads in the past, I really “get” the advantages. I only wish I had seen them years ago 🙂

      Thanks also for the feedback about Commentluv it seems okay now. I will head over and check the rest. Kimberly deactivated all my plugins in class last week and then activated them again – but I did not redo the settings. I am so glad you picked it up.

  4. Pingback: Traditional Business vs Network Marketing

  5. Michaelé Harrington

    Hi Sue,

    What a great explanation. I love the analogy of using the traditional structure of a corporation from the CEO down, to dispel the pyramid myth!
    We live in such a fast paced and vastly changed world, to that of our parents. So it just makes perfect sense to evolve with the times and take advantage of the opportunities we now have access to.
    The old mantra of “Go to school, get good grades and then dedicate your life to a secure company”, has been replaced with unprecedented opportunities to choose where we dedicate our time.
    Michaelé Harrington recently posted..How To Brand Your Blog With A FaviconMy Profile

    1. Sue Post author

      Hi Michaele
      I keep thinking of additional ways to dispel the pyramid myth as it is a crazy one really.
      I love your comment about our unprecedented opportunities. I think these times are very exciting if we are willing to embrace them.

  6. parent coach

    Hi Sue, I got your email thank you for the feedback. I agree that once one knows the power they hold aside from the traditional point of view it changes their view point on the world. This just made me realized something as I typed it. It’s about time I made some changes in my life.


    1. Sue Post author

      Billee thanks for your comment. It sounds like we are of the same opinion on the Network Marketing Model.

  7. Jamaal

    Having read this I believed it was rather enlightening.
    I appreciate you taking the time and energy to put this article together.
    I once again find myself personally spending a significant
    amount of time both reading and commenting.

    But so what, it was still worthwhile!

    1. Sue Post author

      Lynda I have been blogging for just over two years now. It was not easy for me in the beginning 🙂

      Thanks for your comment