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Although the two terms are often used interchangeably MLM and network marketing are actually separate from each other.  While somewhat different, both structures are oftentimes used in conjunction with each other.  This integrated model involves network marketers utilizing a social network to generate customers.  These customers can now become distributors of the product themselves.  When a subsequent sale is made by this new networker, they, along with the person who recruited them, as well as the original company, all get a percentage.  This chain of payment is able to continue growing exponentially and, thus, income is being generated not only by you, but for you as well.

Because of the promise of residual income, MLM has been a popular model for many years.  However, while some of these programs worked well, others fell flat.  Eventually, many network marketers found that their well ran dry.  Many would run through their group of friends and family and would then be left with no one else to which they could sell.  Although their money generating ladder could continue to grow, with each step removed, the residual income became less and less.  Although they often started off strong, many of these money-making ventures would, sooner or later, cease to produce any real, substantial, income.

With the advent of the internet, many network marketers thought that this would expand the business of MLM.  Providing the ability to reach a wider audience, computers seemed to be a great solution to the problem of ever-diminishing personal networks.  However, for the most part, expanding technologies have led to a decline of multi-level marketing.  Interestingly enough, one of the main reasons for this downfall is the fact that so many people jumped on the bandwagon that the market became overly saturated.

Due to this oversaturation, many people are now separating themselves from the MLM model and looking for new ways to generate income.  Some of these opportunities follow a similar business model but with a slightly different structure.  One such example that is increasing in popularity is top tier direct sales.  This method focuses on selling items with a higher price point.  By doing this, there is less of a need to rely on people down the line to generate sales.  This, coupled with the fact that you obviously get a higher return on a more expensive product, ends up earning you more money.  Therefore, the attrition of MLM has led network marketers to find ways that improve upon the old multi-level marketing structure that result in a higher paycheck.