Ah, Ken, no fair!
First you ask what it means, then you throw out a summary but won't debate? OK, since this is a moderated forum, I'm going to put my two cents' worth in, and you can decline to post it if you want.
Network marketing is marketing through and to people you know. It is more successfully done when you have formed a positive, deeper-than-superficial relationship with the people before you try to sell them something. Most successful of all is the person who has simply offered information that the people he knows finds valuable enough to remember, act upon and/or pass on to people they know.
Multi-level marketing is nothing more than a compensation model. Those who get compensated the most have made great use of networking to advertise their wares and recruit others to do the same. The same thing happens to marketers who are compensated on a more traditional, or corporate model, except that they are not usually compensated for benefiting the company by finding other people to help sell.
As with any goods or services, there are those of inferior and those of superior quality in both MLM and traditional marketing. The consumer gets to be the judge of the cost vs value.
MLM has developed the reputation for the problems you bring up due to three things:
1) The tendency of the uninformed to hype their company's business model over the benefits of their products.
2) The tendency of some people to try to selfishly exploit their friends and acquaintances, whether or not the product is beneficial to those particular people.
3) A few bad-apple companies that have misapplied the business model for their own gain. (OK, a lot--but not all!)
I have myself been guilty of mixing the terms indiscriminately. As a result of this discussion, I won't do that anymore. I am proud to represent my companies because I believe in the quality of their products (information-based, in both cases). I like the business model, which is MLM--it gives me the power of leverage.
I have chosen to learn the proper application of the networking aspect of it because a) it's fun and I like people b) I'm stimulated by ideas/discussion and c) it's the best way to do it, though definitely not the fastest. If I recruit among friends who have come to respect my opinions and leadership, they are more likely to follow my success model and thereby create success for themselves. That leads to greater personal satisfaction for me, as well as greater compensation.
Thanks for a stimulating topic.
Cheri
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