• Join Chef Success Today! Get support for your Pampered Chef business today! Increase your sales right now! Download 1000s of files and images, view thousands of Pampered Chef support threads! Totally Free!

Direct Sales Vs Network Marketing?

They are both types of sales, but they are not the same thing. Direct Sales is where you sell to a small number of people who you know personally, and Network Marketing is where you sell to a large number of people who you don't know personally.
P
pamperedlinda
Gold Member
10,264
What's the difference between Direct Sales and Network Marketing? Are they different terms for the same thing?
 
pamperedlinda said:
What's the difference between Direct Sales and Network Marketing? Are they different terms for the same thing?
Click to expand...

When I think of network marketing, I think of things like Amway - where you are making money just by signing people up, not by selling an actual product.
 
I looked it up online. The difference is that direct sales is more of a one-on-one thing. Network marketing is selling to a large group.
 
First of all Pampered Chef is NOT network marketing we are direct sales.

With network marketing you are encouraged to buy from yourself. So you buy from yourself for whatever product they are peddling be it vitamins, groceries, or makeup. You buy your own vitamins from yourself, the nice thing is you get a commission off of whatever you buy for your own personal use. Your upline also gets a commission off of whatever you buy. So with network marketing you are encouraged to buy from yourself and then recruit others to also buy from themselves. The more people you recruit the more of a kickback you get.

With direct sales we don't encourage people to buy from themselves. We go out and sell to other people. When we recruit we also encourage our recruits to go out and sell to other people.

So with network marketing you buy from yourself and don't sell to others but recruit other people to buy from themselves.

With direct sales you sell to a large customer base.

What can be confusing is that some people do use the terms interchangeably even though they are not the same.
 
Last edited:
ChefBeckyD said:
When I think of network marketing, I think of things like Amway - where you are making money just by signing people up, not by selling an actual product.
Click to expand...
That's not entirely true - there's no direct monetary plus to just signing someone in Amway, they have to purchase/sell items in order for the sponsor to see any financial gain.
 
chefann said:
That's not entirely true - there's no direct monetary plus to just signing someone in Amway, they have to purchase/sell items in order for the sponsor to see any financial gain.
Click to expand...


I know - I am just not expressing myself well today!:grumpy:
It's the idea that when you meet someone who is an Amway Distributor, they don't try to sell you product - they try to sell you on signing up. I've said this before - but of all the times I've had someone approach me, or come to my house regarding Amway - never once have they tried to get me to buy any product - they just try to get me to sign up and become a distributor myself.......a distributor of what....I may ask? (I KNOW what they sell - it's just that never comes into the conversation.) So like chocolatejunkie stated - it's about getting people to sign up and buy themselves - not about selling a product.
 
  • Thread starter
  • #7
Thanks. This is what I thought was the difference, just didn't know how to word it or explain it.

So Direct sales examples would be: PC, Tupperware, Southern Living @ Home, Taste of Home....

Network Marketing examples would be: Arbonne, Amway, Melaluca....

Is that right?

Chocolatejunkie said:
First of all Pampered Chef is NOT network marketing we are direct sales.

With network marketing you are encouraged to buy from yourself. So you buy from yourself for whatever product they are peddling be it vitamins, groceries, or makeup. You buy your own vitamins from yourself, the nice thing is you get a commission off of whatever you buy for your own personal use. Your upline also gets a commission off of whatever you buy. So with network marketing you are encouraged to buy from yourself and then recruit others to also buy from themselves. The more people you recruit the more of a kickback you get.

With direct sales we don't encourage people to buy from themselves. We go out and sell to other people. When we recruit we also encourage our recruits to go out and sell to other people.

So with network marketing you buy from yourself and don't sell to others but recruit other people to buy from themselves.

With direct sales you sell to a large customer base.

What can be confusing is that some people do use the terms interchangeably even though they are not the same.
Click to expand...
 
Actually, we are Network Marketing.

The others you are thinking of are Multi-Level Marketing, which we are not.
 
  • Thread starter
  • #9
DebbieJ said:
Actually, we are Network Marketing.

The others you are thinking of are Multi-Level Marketing, which we are not.
Click to expand...
Okay, now I'm confused again. So, are we considered Network Marketing or Direct Sales? I thought that since we were a part of the DSA that we were Direct Sales.
 
  • #10
Direct Sales IS Network Marketing.
 

1. What is the difference between direct sales and network marketing?

Direct sales involves selling products directly to consumers through personal interactions, such as in-home parties or one-on-one demonstrations. Network marketing, also known as multi-level marketing, involves building a team of salespeople who not only sell products but also recruit and train others to do the same.

2. Which one is better for making money?

Both direct sales and network marketing can be profitable, but it ultimately depends on the individual's effort and success in selling and recruiting. Network marketing may have a higher earning potential due to the ability to earn commissions from your team's sales, but it also requires more time and effort to build and maintain a successful team.

3. Do I need to invest money to get started in direct sales or network marketing?

Most direct sales and network marketing companies require an initial investment to become a consultant or distributor. This typically includes purchasing a starter kit or product inventory. However, the investment can vary greatly depending on the company and products being sold.

4. Can I do both direct sales and network marketing at the same time?

Yes, it is possible to do both direct sales and network marketing simultaneously. However, it may require a significant amount of time and effort to maintain both businesses. It's important to carefully consider your resources and ability to manage both before committing to doing so.

5. How do I choose which one is right for me?

The best way to choose between direct sales and network marketing is to research and compare different companies and their compensation plans, products, and training and support systems. Consider your personal strengths and interests, as well as the time and resources you have available to devote to the business. It's also helpful to speak with others who have experience in both industries to gain insight and advice.

Similar Pampered Chef Threads

Director What the Big Announcement Wasn't
  • CoidgigBese
    • Recruiting and Team Leaders
Replies
4
Views
841
Sheila
Director Webzine Article Re: Direct Sales (Mlm's)
  • micocina
    • Recruiting and Team Leaders
Replies
14
Views
1K
micocina
Effective Strategies for Responding to Network Marketing Comparisons
  • melindag
    • Business, Marketing and Customer Service
Replies
6
Views
1K
cmdtrgd
The Attitude of a Leader: Mastering Direct Sales Success
  • Deb Bixler
    • Recruiting and Team Leaders
Replies
33
Views
4K
ChefNic
Direct Sales Companies in Trouble?
  • susanr613
    • Pampered Chef Sales
Replies
16
Views
2K
jenboswood
Networking with Other Small & Direct Sales Businesses - Sherry Needs Help!
  • Sherry Leigh
    • Business, Marketing and Customer Service
Replies
4
Views
1K
AnaCash
Boost Your Direct Sales Recruiting Success with These Gift Bag Tips
  • leshelman
    • Pampered Chef Recruiting
Replies
4
Views
8K
tpchefpattie
Is Pampered Chef a Scam? The Truth Revealed by The Renegade Network Marketer
  • schel
    • General Chat
Replies
5
Views
6K
janetupnorth
Is Financial Success Guaranteed for Directors in Network Marketing?
  • phatratz
    • Recruiting and Team Leaders
2
Replies
68
Views
4K
ChefBeckyD
Are Direct Sales Companies Really Giving Themselves a Bad Name?
  • NooraK
    • Pampered Chef Sales
Replies
20
Views
3K
Intrepid_Chef
Back
Top