This is ‘Recession Proofing Your Income with Network Marketing’, an interview with Ken Maxwell.

What’s the difference between network marketing and multi-level marketing and direct selling?

Ken: Direct selling is pretty straightforward. Direct selling is you got be selling. End of story. If you're out there, you've got a product and you go knocking door-to-door, that’s direct selling. Or if you do it through an online system, that’s direct selling. That’s pretty straightforward, that’s very easy to understand. Multi-level marketing is – some companies are out there and you will join their organization through a sponsor and your sponsor will say to you, “Now, to get your first check level, you need to gain, for example, 1000 points. Now that’s 1000 point. Your next level, for a check is 2000 points. Your next level, is 3000 points.” So that’s how it works, that’s multi-level marketing. If you get 999 points, this particular month, your check is zero. And you start back at zero the next month. If you get 1999 points this month, you get paid at the 1000 point level and you lose your 999. That’s like saying free to come to work for me for 40 hours a week, you have to have a day of because you were sick, okay I can’t pay you this week. Now that’s not very fair, is it? So that’s my understanding of multi-level marketing, you have to reach these levels to get paid. And you start back at zero every month. Network marketing on the other hand, and again using the example of the company that I work with, is you are paid for all the sales volume in your entire organization every week. You're not restricted to levels, it’s sales volume. Total sales volume in your entire organization that you're paid the commission on. And that’s a significant difference.

Part 1: Why did you pick network marketing?

Part 2: What are the misconceptions of network marketing?

Part 4: How to choose a network marketing company?

Part 5: Do you have to quit your job to do network marketing?