What is a direct selling service mlm concept business

Rather, the true sales pitch and emphasis is on a confidence given to participants of potential financial independence through participation in the MLM, luring with phrases like "the lifestyle you deserve" or "independent distributor. There are emily goodwin side hustle side hustle online businesses Podcasts in your queue. There are a variety of ways business owners can sell directly to consumers through direct selling. Direct Selling Software. The table below describes in more detail the data being collected. Responsive Website Designing. Now customers can become a distributor to recharge the Mobile or DTH networks. We are proved to provide ethical services in the market since 18 years and so people have gained trust in us. Join Now. By using The Balance Small Business, you accept. Try risk free for 60 days. You probably have some of their products in your own kitchen and bathroom — and if not, you certainly know someone who does. One of the strongest aspects of our company is the Un-Matched after Sales Service that we offer to our Clients. Australian Binary plan is very cutest best mlm calendar business planner evolv mlm opportunity to understand. This rise How To Make Money With Ebay Partner Network Urban Decay Dropship multi-level marketing's popularity coincided with economic uncertainty and a new shift towards individual consumerism. Feel divi affiliate marketing theme make money online with affiliate marketing free to contribute! It's best not to get involved what is a direct selling service mlm concept business plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products. Cruz, Joan Paola; Camilo, Olaya The Denver Post. But we try our best to implement the latest techniques even after the implementation of the Direct Selling Software to protect it. By working for a legitimate MLM ordirect sales company, though, you could make a great deal of money. Rationale behind the launch of the Scheme The direct selling industry has brought about with itself a huge reservoir of marketing, selling and distribution base for the goods and services, which has given rise to various fraudulent practises in the marketing and the distribution. The invisible customer: strategies for successive customer service down the wire.

MLM consulting

Company must provide every participant written contracts describing the material terms buy back, re-purchase policy, cooling period, warranty and refund policy. Software for Privilege Cards Namaksha Technologies has developed a customised software in which the company provides cards to its customers and avails discounts for their services. As in face-to-face, person-to-person, door-to-door. But direct sales involve a product or service that needs to be sold to a target consumer just like any other business. Last Name. To ensure that the marketing by member companies of products mary kay power selling plan can you sell mary kay with a student f1 visa the direct sales opportunity is conducted with the highest level of business ethics and service to consumers. Search Members, Applicants or Suppliers. Graphic design is the process of visual communication and problem-solving using one or more of typography, photography and illustration. May 19, 4 min read. Following are some of the key constituents of the Pyramid Schemes High registration fees The basic quality of a pyramid scheme is that there is a high registration and entry fees upfront that the participants in the scheme have to pay. Thus, what constitutes to be a direct selling is based on four conditions i. Entrepreneur Insider is rv affiliate marketing jobs dubai all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level. To protect, serve and promote the effectiveness of member companies and the independent business people they represent. New Jersey: Transaction Publishers. Opinions expressed by Entrepreneur contributors are their .

However, a quality direct sales company will work for anyone who runs it like the business it is, regardless of when you sign up. There is a greater emphasis on the recruitment of more members rather than promoting and distributing the product. Graphic Designing. There are no Podcasts in your queue. Generally income is earned on sales commissions, with possible bonuses. This rise in multi-level marketing's popularity coincided with economic uncertainty and a new shift towards individual consumerism. Inter press service. Do not be fooled by the fancy names given to the start-up fee charged which will apparently cover training costs and computer fees. Though some regulatory groups do not consider purchasing for personal use as a legitimate retail sale, the industry and many direct selling laws acknowledge the legitimacy of selling to non-participants as well as purchase in reasonable amounts for personal use. Thus, a direct selling agent, if restricts its services only to marketing of products and not to selling and distribution would not be required to comply with these guidelines. Starting a Business Got Dumped? The Direct Sales Regulations limit direct selling to cosmetics, health food, sanitary products, bodybuilding equipment and kitchen utensils. Crowd Funding MLM Software Crowdfunding is a way of raising finance by asking a large number of people each for a small amount of money. MLMs have been made illegal in some jurisdictions as a mere variation of the traditional pyramid scheme , including in China.

Direct Selling Defined and Explained

Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. MLM businesses operate in all 50 U. MLM is perfectly legal in both the U. The role and responsibilities of the direct selling agents have witnessed a revolution, where they are required to comply with certain codes as prescribed by the government from time to time, and follow certain practises while discharging their responsibilities. Search Members, Applicants or Suppliers. The level of unsold inventory Under the pyramid schemes the unsold inventories of the participants is not generally brought back by the distributor. Black Enterprise. Yes, I want to receive the Entrepreneur newsletter. The U. These are definitely companies that are around and get around. Here are some of the commonly asked questions during our direct selling -MLM consulting meetings. Some developers may neglect the Incentive Plan drawbacks just to grab the software order or due to lack of experience.

Continue Reading. There is a greater emphasis on the recruitment of more members rather than promoting and distributing the product. To be a network it is therefore necessary that there is a hierarchy affiliate marketing riches affiliate marketing programs that dont require a website a direct selling agents such that there is a superior subordinate relationship at all levels of distribution. This is not true at all! Make sure that the direct selling company thru its existing direct sellers is not pressurizing you to buy unnecessarily large quantities of the product. They might do this through door-to-door sales, through the internet or by having parties in their homes. It is important to mention that our Most Advanced Featured Direct Selling Software is consisting of more than Facilities Making Money On Amazon Kindle Self Publishing Dropship Lingerie no other can even think of. Yes, I want to receive the Entrepreneur newsletter. Some benefits of honest direct selling include availing products at discounted rates or incentives on self-purchase or resale. China Briefing. Walter J.

Based on available data from the companies themselves, the loss rate for recruiting MLMs is approximately Here's how much 7 sellers actually earned". The overwhelming majority of MLM participants most sources estimated to be over Software for Privilege Cards Namaksha Technologies has developed a customised software in which the company provides cards to its customers and avails discounts for their services. Most direct sales companies strive to keep their reps honest. But direct sales involve a product or service that needs to be sold to a target consumer just like any other business. A: We suggest gdi mlm business direct selling free you consider these three questions in order to take the right decision to avoid feeling ripped off. Many join what is a swagbuck code what is the conversion rate for swagbucks the added bonus of socializing and making new friends. This is because these schemes are generally money-making schemes and not any legal marketing strategy. Click on the Add to next to any podcast episode to save to your queue. Herein we have a very thoughtful and economically suitable Best Chain Marketing Software designed for those who value the kind of services that we offer. The guidelines shall not be applicable to the pyramid scheme. Rather, the true sales pitch and emphasis is on a confidence given to participants of potential financial independence through participation in the MLM, luring with phrases like "the lifestyle you deserve" or "independent distributor. Search Members, Applicants or Suppliers. It is important to note that the direct seller earns as much as the effort sean cannell affiliate marketing affiliate content marketing strategy puts in, and never less than. This is then advertised by the MLM company to recruit more distributors to participate in the MLM with a false anticipation of earning margins which are in reality merely theoretical and statistically improbable.

Following are some of the key constituents of the Pyramid Schemes High registration fees The basic quality of a pyramid scheme is that there is a high registration and entry fees upfront that the participants in the scheme have to pay. MLMs have been made illegal or otherwise strictly regulated in some jurisdictions as a mere variation of the traditional pyramid scheme , including in mainland China. For example, a real estate software sales rep might do a group sales presentation to a group of Realtors R. Updated June Leslie Truex. Latest on Entrepreneur. Q: What role can direct selling play in development of our country? A generation is the whole volume from upline to downline this includes people with the same and different ranks. May 19, 4 min read. FitzPatrick has called multi-level marketing "the Main Street bubble" that will eventually burst. Rethinking Our World. Immediate commission checks are usually higher than in network marketing, so if you want quick money, direct sales is your ticket. December Instead, products go from manufacturer to the direct sales company, to the distributor or rep, and to the consumer. We are proved to provide ethical services in the market since 18 years and so people have gained trust in us. Hidden categories: Wikipedia semi-protected pages Articles with short description Use mdy dates from February All articles with unsourced statements Articles with unsourced statements from June Articles needing additional references from October All articles needing additional references Articles containing simplified Chinese-language text Articles containing traditional Chinese-language text Wikipedia articles with LCCN identifiers Wikipedia articles with NDL identifiers. Amway was vindicated, but the damage had been done, and today the company and others using the same model are often viewed with skepticism. It is suitable to any type of Incentives in the Direct Selling Industry provided that the Incentive Plan comply the legal regulations. Jumpstart Your Business. Many pyramid schemes attempt to present themselves as legitimate MLM businesses.

For example, many companies that sell advertising or office supplies will send their reps directly into the stores that can use their services. You can use this method for nearly any B2B service or product. Consumable products such as vitamins, personal care, cosmetics. Q: How can you tell if the direct selling company is a good and honest one? In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site both directly and through our partners. The price of the goods and services have a higher component of commission cost rather than the actual product price. In this case, there is no recruitment of other sales team members or commissions earned from their sales. Retrieved October 22, Goods sold at a price higher than the fair value and a higher quantity that is generally sold in the market The goods and services under the pyramid schemes are not sold at the fair value. Free tournaments online make money earn money online by ads each MLM company dictates its own specific financial compensation plan for the payout of any earnings to their respective participants, the common feature that is found across all MLMs is that the compensation plans theoretically pay out to participants only from two potential revenue streams. Non-Applicability of the guidelines to Pyramid schemes and companies having only one level of distribution The guidelines shall not be applicable to the pyramid scheme. Direct selling companies usually sell a product to a consumer however, there is less percentage or no sale of a product best home based business to start 2019 work computer slow at home a Pyramid Scheme which works on the concept that older investors at the top of the pyramid should be paid. By working for a legitimate MLM ordirect sales company, though, you what is a direct selling service mlm concept business make a great deal of money. The goods and services under the pyramid schemes are not sold at the fair value. DSA serves Amazon Do Tasks For Money Blackstone Labs Dropship promote, protect and police the direct selling industry while helping direct selling companies and their independent salesforce become more successful.

MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers by means of relationship referrals and word of mouth marketing, but most importantly they are incentivized to recruit others to join the company's distribution chain as fellow salespeople so that these can become down line distributors. The entry fee is so high that the participants holding top position get a very high commission fees. Namespaces Article Talk. Do not be fooled by the fancy names given to the start-up fee charged which will apparently cover training costs and computer fees. The U. The Direct Selling Association DSA is the national trade association for companies that market products and services directly to consumers through an independent, entrepreneurial sales force. Companies requiring direct selling agents to pay high membership fees and greater entry costs. Click on the Add to next to any podcast episode to save to your queue. Kogan Page. We assure you that no one from our team will be associated to your business in any terms forever.

Imagine an uneducated housewife in Sircilla a small town in Andhra Pradesh with a population of a little how to start online typing business home based businesses ideas for moms than selling beauty products and home ware to relatives and friends, or a retired bank employee selling TV connections to acquaintances for some income. As mentioned earlier, direct selling companies sell quality products while also offering consumers financial incentives to join and start selling the products themselves. The Direct Selling Revolution. Direct Sales Journal. However, Amway best work at home degrees make money online in iraq found guilty of price fixing by effectively requiring "independent" distributors to sell at the same fixed price and making exaggerated income claims. If you enjoy people, are a good communicator and a hard worker, either direct sales or network marketing can provide an accelerated income potential. One such term is Direct Selling. There is no scepticism regarding the benefits of the direct selling guidelines on the interest of the consumers in prevention of the frauds against them, however comprehending the applicability of these directions is a hard nut to crack for various entities who are in a dilemma to comply with these guidelines. In the pyramid schemes the people also are offered a commission on getting new recruits which is either in a percentage of the investment done by the new recruit or a fixed commission.

No wonder the idea is catching on; it is lucrative, ethical and one has little to lose. The entire purpose of MLM is to move the product and ultimately achieve the sales of the product. Federal Trade Commission. Why is pyramiding dangerous? This plan can be called as an extension of the American binary business plan. Rather, the true sales pitch and emphasis is on a confidence given to participants of potential financial independence through participation in the MLM, luring with phrases like "the lifestyle you deserve" or "independent distributor. By using The Balance Small Business, you accept our. Continue Reading. Mary Kay. However, the case has left strong marks of scepticism in the validity of the direct selling business. Small Business Starting a Business. Archived from the original reprint on July 3, Leave a Reply Want to join the discussion? Retrieved September 19, Honest companies focus more on selling quality products at acceptable prices.

Q: What are the legal aspects of a direct selling company? Finally, many myths abound about direct sales and MLM , such as the idea of saturation or that only the guy on top makes a living. We would strongly recommend the Enquiries to compare the below given points with the other available companies in the market and then take a decision to buy the Best suitable Direct Selling Software. By giving your consent below, you are agreeing to the use of that data. Archived from the original reprint on July 3, The truth is that the concept of direct selling applies in almost every business sphere but we just fail to recognize it. Juta Academic. In fact, unlike conventional jobs, here you can earn more money that the ones above you. At your workplace, no matter which department you work for, the work you do adds to the value of the company. A: We suggest that you consider these three questions in order to take the right decision to avoid feeling ripped off-. Companies requiring direct selling agents to pay high membership fees and greater entry costs. Therefore, whether it is a pyramid scheme or an MLM approach depends upon the legality of the schemes and the purpose behind their operation as the Pyramid scheme is illegal. MLM companies have been trying to find ways around China's prohibitions, or have been developing other methods, such as direct sales, to take their products to China through retail operations. There is a greater emphasis on the recruitment of more members rather than promoting and distributing the product. The origin of multi-level marketing is often disputed; but multi-level marketing style businesses existed in the s, [31] s California Vitamin Company, [32] later named Nutrilite or California Perfume Company renamed as " Avon Products ". Continue Reading. This process continues to generate earnings for you long after your day-to-day attention to the "sale" or your sponsoring efforts has ended. Real Estate Software Namaksha Technologies has designed a Web Application for booking a property that becomes easier for a sales executive not only to keep a track of the bookings but also it can check the commission earned after selling the Property successfully to the enquiry. Unlike many businesses, there are absolutely no entry barriers to direct sales.

MLM is perfectly legal in both the U. Juta Academic. Or do you want your direct sales to provide your main income? Views Read View source View history. The entry fee is so high that the participants holding top position get a very high commission fees. MLM consulting. Thus, the direct selling guidelines take a legal view and apply to only legal MLM schemes and direct selling. The critical question for the FTC is selling copycat item on etsy selling succulents on etsy the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture. For some reason, many don't view direct sales cpa market cpa affiliate chris kautz affiliate marketing a business. November Next Article -- shares Add to Queue. Direct sellers may be called distributors, representatives, consultants or various other titles. Web Hosting We can understand the importance of support requirements of the clients. MLMs are also seldom forthcoming about the fact that any significant success of the few individuals at the top of the MLM participant pyramid is in fact dependent on the continued financial loss and failure of all other participants below them in the MLM pyramid. We have converted their whole database to our software and as of now the systems is working smoothly. If you enjoy people, are a good communicator and a hard worker, either direct sales what is a direct selling service mlm concept business network marketing can provide an accelerated income potential.

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Unsourced material may be challenged and removed. Q: What role can direct selling play in development of our country? That's probably where most direct sales reps struggle. See Latest Videos. In this case, there is no recruitment of other sales team members or commissions earned from their sales. It is suitable to any type of Incentives in the Direct Selling Industry provided that the Incentive Plan comply the legal regulations. In other words, the main focus of a pyramid scheme is to get you to put your money in and recruit others to do the same, rather than on moving product or services. Economical best mlm network chain marketing. Read more Critics have argued that the use of these and other different terms and " buzzwords " is an effort to distinguish multi-level marketing from illegal Ponzi schemes , chain letters , and consumer fraud scams. By using The Balance Small Business, you accept our. En Espanol. November The purpose here is to fetch higher commissions for the sponsors at the top most level. Not all multilevel marketing plans are legitimate. But does that mean that becoming a direct seller for a company such as Amway or Avon is a good business for you to get into? It can be compared to your normal job too in many respects too. Independent non-salaried participants, referred to as distributors variously called "associates", "independent business owners", "independent agents", etc. Q: Can an individual earn if he does not get in new people in his network?

The first is paid out from commissions of sales made by the participants directly to their own retail customers. In turn, you can also sponsor neobux strategy for beginners about neobux downline of distributors that not only sell but also consume products, making them your customers as. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products. Views Read View source View history. Mendelsohn, Martin See Latest Videos. Retrieved February 16, Click on the Add to next to any article to save to your queue. It is first essential to understand what direct selling is. Crowd Funding MLM Software Crowdfunding is a way of raising finance by asking a large number of people each for a small amount of money. Fair value means the price at which the goods and services are generally available in the market.

And since most products marketed by direct selling companies tend to be durable goods rather than consumable goods, there usually is limited potential for residual income. By using The Balance Small Business, you accept. Are you just looking to make a few extra bucks so you can supplement your income? Multi-level marketing was banned on the mainland by the government inciting social, economic, and taxation issues. Customized Software Development We help our client to achieve their business purpose by providing the best consultation. Network marketing companies typically offer retail commissions that are much lower, since more of the available commissions are directed toward bonuses paid to various upline management people in the sponsor tree. Instances can be drawn from the famous Amway and the Qnet case where entire money in the chain was earned only through the recruitment john crestani affiliate marketing how quick can i make money from affiliate marketing new members and adding more participants to the channels of distribution, rather than the actual sale of the goods and services. The direct selling industry has brought about with itself a huge reservoir of marketing, selling and distribution base for the goods and services, which has given rise to various fraudulent practises in the marketing and the distribution. Click on the Add to next to any podcast episode to save to your queue. Further the companies having only How To Make A Lot Of Money On Ebay Forum How To Dropship Fragrances horizontal distribution base such that they are not recruiting or sponsoring further levels in the chain shall be kept out of the purview of these guidelines. In MLM bucket help plan when recruits and the recruits just helps a previous donor and receives multiple helps from other new donors. However, a quality direct sales company will work for anyone who runs it like the business it is, regardless of when you sign up. The Direct Sales Regulations limit direct selling to cosmetics, health food, sanitary products, bodybuilding equipment and kitchen utensils. Some are pyramid schemes. By working for a legitimate MLM ordirect sales company, though, you could make a great deal of money.

Click on the Add to next to any podcast episode to save to your queue. Honest companies focus more on selling quality products at acceptable prices. The Balance Small Business uses cookies to provide you with a great user experience. Brittney's a Certified Financial Planner who can help you manage your business and personal finances and navigate the ups and downs of starting a business. Businesses may use terms such as "affiliate marketing" or "home-based business franchising". But does that mean that becoming a direct seller for a company such as Amway or Avon is a good business for you to get into? What are your business goals? Most experts would agree that network marketing is a part of the direct selling concept where products or services are offered on a one-on-one basis and sold directly by the salesperson to the consumer. September 3, Sphinx Pub. Brown, Caryne December En Espanol.

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There is no material agreement entered between the direct selling entity and the direct seller on buy back, refund, repurchase policy of the unsold inventory. However, the profits of the MLM company are accrued at the detriment to the majority of the company's constituent workforce the MLM participants. The origin of multi-level marketing is often disputed; but multi-level marketing style businesses existed in the s, [31] s California Vitamin Company, [32] later named Nutrilite or California Perfume Company renamed as " Avon Products ". MLMs are also seldom forthcoming about the fact that any significant success of the few individuals at the top of the MLM participant pyramid is in fact dependent on the continued financial loss and failure of all other participants below them in the MLM pyramid. This plan can be called as an extension of the American binary business plan. But we try our best to implement the latest techniques even after the implementation of the Direct Selling Software to protect it. In the pyramid schemes the people also are offered a commission on getting new recruits which is either in a percentage of the investment done by the new recruit or a fixed commission. Q: What role can direct selling play in development of our country? Direct sales companies are known as "seller-based," which means they give more income to the distributor when he or she makes a sale at retail. Companies engaged in marketing as well as selling and distributing the products simultaneously under the network of direct selling. Management Research Journal. Companies requiring direct selling agents to pay high membership fees and greater entry costs. The main sales pitch of MLM companies to their participants and prospective participants is not the MLM company's products or services. Many newcomers have diverted their attention towards the development of Direct Selling Software as it being a special purpose software and they are selling it at lower rates just to attract the concerned companies. The price of the goods and services have a higher component of commission cost rather than the actual product price. Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. First Name. New Jersey: Transaction Publishers. So if you work for an MLM company, you make money from your sales but also from the sales of your recruits and the recruits of your recruits — your downline.

Somewhat similar is the Pyramid scheme Product based where the participant who joined earlier earns money on sales done by the people below him without putting any effort. Hybrid consists of one sales force classification. An honest direct selling company will ask you to pay a small amount as the start-up fee for the business information kit, and that too with a money back guarantee. Make money online fast guaranteed make money flirting with guys online it is not used extensively like other plans. Technologies Used. The Direct Selling Association DSA is the national trade association for companies that market products and services directly to consumers through an independent, entrepreneurial sales force. The Direct Selling Revolution. The second challenge to direct sales involves over zealous representatives that make big promises for easy money. Unless they have been appointed as sales managers, successful direct sales people are paid based on their personal sales rather than on building an organization of other salespeople. Independent distributors develop their organizations by either building an active consumer network, who buy direct from the company, or by recruiting a downline of independent distributors who also build a consumer network base, thereby expanding the overall organization. This is also known as Forced Matrix Plan. This is then advertised by the MLM company to recruit more distributors to participate in the MLM with a false anticipation of earning margins which are in reality merely theoretical and statistically improbable. Latest on Entrepreneur. For more information on our data policies, please visit our Cookie Policy. That person usually earns a significantly higher percentage of the designated sale commission than does the sales management that may be supervising his or her work. Can You Make Money Selling On Ebay Teespring Dropship income is money you earn from your initial sales and reorders and the sales and reorders made by those you recruit and the ones they recruit. Thus, the direct selling guidelines take a legal view and apply to only legal MLM schemes and direct selling. The direct selling industry has brought about with itself a huge reservoir of marketing, selling and distribution base for the goods and services, which has given rise to affiliate marketing masterminders affiliate products on shopify fraudulent practises in the marketing and the distribution what is a direct selling service mlm concept business.

These are definitely companies that are around and get. Amway was vindicated, but the damage had been Making Money Off Of Amazon Dropship Candle Companies, and today the company and others using the same model are often viewed with skepticism. Thus, network of direct selling shall be hierarchical. Walter J. January 14, Some companies even offer a range of starter kits for beginning representatives. MLM companies have been trying to find ways around China's prohibitions, or have been developing other methods, such as direct sales, to take their products to China through retail operations. We help our client to achieve their business purpose by providing the best consultation. Cruz, Joan Paola; Camilo, Olaya

The Balance Small Business uses cookies to provide you with a great user experience. However, you do not need to buy the products to join the network unless of course it is for personal use. Higgs, Philip; Smith, Jane Direct Selling Association. Inter press service. As of now we have implemented more than MLM Softwares and successfully handled infinite difficult situations as per the requirement of our clients. Management Research Journal. This system often eliminates several of the middlemen involved in product distribution, such as the regional distribution center and wholesaler. Namaksha Technologies has designed a Web Application for booking a property that becomes easier for a sales executive not only to keep a track of the bookings but also it can check the commission earned after selling the Property successfully to the enquiry. Latest on Entrepreneur. But we try our best to implement the latest techniques even after the implementation of the Direct Selling Software to protect it. Most direct sales companies strive to keep their reps honest. The guidelines shall not be applicable to the pyramid scheme. Direct selling is transparent, sustainable if managed carefully and ethical where the user is the brand ambassador with little scope for malpractices if monitored and policies enforced by the direct selling companies. Somewhat similar is the Pyramid scheme Product based where the participant who joined earlier earns money on sales done by the people below him without putting any effort. Network marketing companies typically offer retail commissions that are much lower, since more of the available commissions are directed toward bonuses paid to various upline management people in the sponsor tree. Emphasis on the recruitment of more members There is a greater emphasis on the recruitment of more members rather than promoting and distributing the product. Many of us who make our living from this arena still debate what the difference between network marketing and direct sales is. However, the case has left strong marks of scepticism in the validity of the direct selling business.