Starting this type of business generally requires an investment very low to make an initial purchase of products, which is usually to try them and get their first customers. 5 You differences between MLM and direct sales sales individual vs leveraged sale while in direct selling only desire what you’re selling, in the multilevel desire of your sales but also $ you earn a percentage of each sale that will make your computer dealer. Hear from experts in the field like Elon Musk for a more varied view. Linear income vs residual income (or royalties) in direct sales, once you have a customer base that you buy month by month, you should spend your time and effort to serve all your customers (track, deliver products, charge, etc.), in addition to winning new customers. While in MLM, you can get to the point in which the majority of your revenue come from sales of distributors that are so well trained that no longer require you to grow their own businesses. At that point you can follow receiving money (residual income or royalties), without having to work to earn it. Competition vs sale in equipment sales as it says the name, in direct sales, each Distributor is busy getting its own customers, so if you have a friend or family member that is in the same company as you, it is going to compete with you to get the sales of their friends or relatives in common. The multilevel more fosters teamwork, for example if I sponsored my sister Brenda in the business, we are not going to fight over who sold you my other sister (Claudia), because we are finally a team and both us economically beneficiariamos for that sale. Local sales vs. global sales something that is obviously different is that in direct sales only you have access to your city market or even more, if you live in a large city, only abarcaras the colony where habitats and surrounding colonies.