Traditional Business vs. Network Marketing

a) In traditional business, you will have to meet all the advertisement cost whether people buys or not. Whereas, in case of network marketing which is word of mouth spread of information, you only have to pay when people buys your services and products.

b) Traditional business generally faces stiff competition with counterfeit products. Hence the producer might have to compromise the price of the products to compete with the counterfeit goods. Whereas in network marketing, customer directory deal with producer of goods and services. There is no compromise regarding the price as there are no middlemen or conmen.

c) In traditional business there is no scope of income over and above regular income. But in network marketing, one can earn more residual income after building a large organization.

d) Generally, in traditional business if emphasis is put on personal development then its only to support organizational growth not of individual growth whereas network marketing focuses more on personal development for the success of the business.

e) In traditional business, no financial freedom is provided because it may be a threat to the organization. But in case of network marketing, marketers become financially free because their compensation is based on the targets realized.

You can also check Network Marketing vs. Direct Selling.