Network Marketing v Conventional Selling - Which Is Better?

In my experience, conventional sales people often look down their noses at network marketing. They tend to see it as “the dark side”, something with which they as professionals would never want to get involved.

Having seen this attitude on a number of occasions, I thought it time to consider the differences between the two approaches to selling and make a personal – and admittedly subjective - attempt to assess whether one truly is better than the other – and if so, which one. Throughout I have made the assumption that both types of sales person have equally attractive products to sell, and that the financial returns in each case are equally fair.


The Similarities

Both types of selling are similar in that the sales person is rewarded on the basis of their success in carrying out the sales function.

In the case of conventional selling, commission-only sales people are rewarded entirely on the results achieved. Other sales people may be paid a retainer as well as a commission. It is unusual for conventional sales people to be paid on the basis of a retainer alone, although in some circumstances this can happen – however if results are not forthcoming, this type employment can be expected to be terminated rapidly. Ultimately, therefore, everyone ends up being rewarded on the basis of results.

In the case of typical network marketing, the participant is a type of sales person and is paid entirely on the basis of results achieved. In this respect he or she is very similar to a conventional commission-only sales person.

In order to be successful, both conventional sales people and network marketers must develop a rapport and relationship of trust with their target market. Whether the target market is an individual or a corporation, the same need for the development of solid relationships with the prospect exists.


The Differences

Conventional sales people are typically employed by an organisation to sell their products. Network marketers on the other hand are self-employed.

Conventional sales people face dismissal if their results are below their employer’s targets. Network marketers, being self-employed, do not face dismissal.

Conventional sales people are paid immediately and regularly for the results they achieve. Network marketers typically run their own businesses and do not receive a regular income in the first instance. Like all business owners, they must first invest time and effort in order to build up their business. The real rewards come later, when the business is successful.

Conventional sales people are generally (although not always) paid once only for each sale that they make. Network marketers expect to be paid over and over again for each sale that they make, as the residual income associated with repeat business reverts to them (after all, they are the business owners!).

Unless they are sales managers, conventional sales people have no management responsibility. They simply carry out the operative task of selling their employer’s goods and services. Network marketers are required to be sales managers as well as sales people from the outset. Their task is to train and motivate their ‘employees‘ (ie their downline) as well as selling to new customers and other potential new employees.


Conclusions

The actual selling work carried out by both types of sales person is very similar, but there are differences.

The work carried out by most conventional sales people is actually less responsible than that carried out by network marketers. Unless they have a sales management role, conventional sales people typically have no management responsibility. By contrast, all network marketers operate with management responsibilities.

Conventional sales people are rewarded more immediately for their work and do not need to invest personal effort without reward, but their positions are much riskier and do not offer long-term rewards for their efforts.

If you want a safe but rather limited job, with immediate returns but fewer long term prospects, conventional selling is for you. If you want to run your own business and enjoy greater long-term prosperity and job satisfaction, you would be better taking up a career in network marketing.

On balance, there is certainly no reason for the network marketer to feel inferior to the conventional sales person. On the contrary, the reverse is probably the case.
In time I believe that network marketing could even replace conventional sales work as the preferred option for sales professionals.