Multi-level Marketing (MLM) and Network Marketing although used synonymously in the network marketing business are in reality, quite different from each other. Basically, the difference between MLM and Network Marketing lies in the manner of their operation, people involved and the incentives gained by them. You should keep in mind their drawbacks or limitations before adopting any of the two models for your business.

In this article, we bring out the difference between the two types of businesses to help you make your choice.

a. Usage of terms

‘Network Marketing’ refers to a particular marketing strategy while MLM refers to the overall business model and hierarchical management structure. The term network marketing does not describe the structure of the business but the strategy of social networking that is used for marketing. So it is possible that a company is using both MLM and network marketing or either of them. However, if either of these terms is used for describing one’s business attributes we can distinguish them further through other attributes dis