Network marketing (MLM) vs remote sales: the difference
Network marketing (MLM) and remote sales both involve selling, but they are different deals. In remote sales, a business pays you, usually commission and sometimes a base, to sell its product to its customers, and it costs you nothing to start. In an MLM you usually pay to join, often buy stock, and your income leans on recruiting a “downline” as well as selling, which is why the US Federal Trade Commission says most people who join legitimate MLMs make little or no money. I’ve done both: my first taste of sales was network marketing in 2014, and I moved into remote sales in 2020.
She Sells trains women in Australia and the US for remote sales roles (closing and appointment setting) worked from home, and helps certified graduates of our career program get placed. So yes, I have a view. But the comparison below holds whoever you train with.
Network marketing vs remote sales at a glance
| Question | Network marketing (MLM) | Remote sales (closer or setter) |
|---|---|---|
| Who pays you? | The MLM company, through a compensation plan with commissions and bonuses, often tied to your downline | The business you sell for, as commission, an hourly rate or base, or a mix |
| Who is your customer? | Often friends, family, your social media followers, and yourself | Leads the business generates: people who have already enquired about its offer |
| Cost to start | Usually a joining fee or starter kit, and often stock you buy before you can sell | Nothing. A real employer or client does not charge you to work |
| Does recruiting pay? | Frequently, through overrides on your recruits’ sales or rank bonuses | No. You are paid on sales or booked calls, not on signing up other people |
| Who carries the risk? | You do: stock, fees and ongoing purchases to stay “active” | Mostly your time. Commission-only roles mean slow weeks pay less, but you aren’t out of pocket |
| Legal position | MLMs can be legal in the US and Australia; pyramid schemes are not | A normal job or contractor arrangement under Fair Work, ATO or US labour and tax rules |
The single quickest test: follow the money. In remote sales, money flows from the end customer, through the business, to you. In a problem MLM, a lot of the money flows from you (and your recruits) up to the people above you.
How you get paid
In network marketing
An MLM pays you through its compensation plan. The FTC’s consumer guidance says a legitimate MLM “will pay you based on your sales to retail customers, without having to recruit new distributors”, and warns that if “your income would be based mostly on how many people you recruit, not how much product you sell”, you’re looking at a pyramid scheme. You can read the full FTC page on multi-level marketing businesses and pyramid schemes.
The FTC’s April 2024 business guidance on multi-level marketing goes further. It states that “most MLM participants earn little to no money”, and that “claims about earnings should take into account both what participants earn and what they spend.” That second line matters: a cheque from your upline means little if you spent more on stock, events and fees to earn it.
In remote sales
A remote closer or appointment setter is paid by the business for results: a percentage of each sale you close, a fee per qualified call you book, an hourly rate, or a base plus commission. Here is the honest bit. Many remote sales roles, especially with online coaching and course businesses, are commission-heavy or commission-only, so you earn when you close or book and less in a quiet week. Results take time while you learn the offer and the process. My own first month in remote sales in 2020 brought in $440. That’s my result, not a typical one. If you’re weighing that trade-off, read commission-only sales jobs: pros and cons.
Public pay data gives you a feel for the range, and it varies a lot by company, offer and hours:
- US: Payscale lists appointment setter pay at roughly US$12.74 to US$20.85 an hour (10th to 90th percentile, updated May 2026).
- Australia: Seek’s sales development representative salary page shows an average advertised salary of about A$80,000 in locations such as Brisbane (October 2026). That’s a salaried sales role, so treat it as a benchmark, not a promise for commission work.
To see how commission maths works: 10% commission on an A$3,000 program you close is A$300 for that sale. Close none that week and you earn nothing from commission. That is the deal, stated plainly.
Who your customer is
This is the difference most women feel first. In many MLMs, your first customers are the people closest to you, and the business model often encourages you to buy product yourself to hit a monthly target. The FTC lists “distributors buy more products than they want to use or can resell” as a warning sign.
In remote sales you aren’t selling to your mates. The business runs the marketing; people book a call because they’re already interested. Setters start the conversation and book the right people, and closers run the sales call and ask for the decision. If you’re not sure which suits you, see remote closer vs appointment setter. Your reputation with friends and family stays out of it.
Want to see if remote sales could work for you? Book a free call with the She Sells team in Australia or the US.
What it costs to join
The FTC tells consumers to “make sure you know what you must pay for, and how much it will cost over time”, and notes you “may have to buy products before you’re eligible to be paid” in some MLMs. Add up the starter kit, the monthly minimum to stay active, events, samples and shipping before you sign anything.
A remote sales job should cost you nothing to start. The FTC’s advice on job scams is blunt: “Don’t pay for the promise of a job.” Australia’s Scamwatch lists being “required to pay a ‘recruitment fee’ or pay for training materials before you begin the job” as a warning sign.
Training is a separate decision from a job. You might choose to pay for a course to learn a skill you keep, from a provider that is not your employer, but no genuine employer should make you buy anything to get hired. Judge any program, She Sells included, on what it teaches, the time it needs from you and exactly what it promises in writing.
What the FTC and the ACCC say (US and Australia)
United States: FTC
- MLMs are not automatically illegal, but pyramid schemes are scams, and a plan that rewards recruiting over real retail sales is a red flag.
- The FTC’s 2024 guidance says “presenting atypical earnings to consumers considering an income opportunity is likely to generate a deceptive impression”, so be wary of lifestyle posts and top-earner stories.
- Ask for the company’s income disclosure statement, and check whether it counts people who lost money.
Australia: ACCC and the Australian Consumer Law
- Under Schedule 2 of the Competition and Consumer Act 2010 (the Australian Consumer Law, enforced by the ACCC), section 44 says “a person must not participate in a pyramid scheme”, and participating includes taking part “in any capacity”. Inducing someone else to join is also banned.
- Section 45 defines a pyramid scheme as one where new participants make a payment that is “entirely or substantially induced” by the prospect of being paid for bringing in further new participants.
- Scamwatch’s job scam guidance adds a simple rule: “Don’t take payment or rewards to recruit other people.”
A legal MLM can still be a poor deal for most people in it. Legal and worthwhile are two different questions.
Where She Sells fits
She Sells trains you for remote sales, not network marketing. There is no downline, nothing to stock and nothing to recruit. Our foundation program, She Launches, covers live coaching, role play and sales frameworks; it does not include direct placement. Our career program, She Soars, takes you through the She Sells “Cert III in Remote Sales” certificate, and once you’re certified, our recruitment team works with you to land a role within 90 days, or your money back. She Sells reports an 84.6% closer placement success rate on its recruitment page. Details are on our programs page.
My 2014 start in network marketing
I started out as a primary school teacher in a small town, and my first taste of sales was in network marketing in 2014. I share that because plenty of women reading this have been there too, and there’s no shame in it. It showed me I liked talking to people about something I believed in. What I’d tell my 2014 self is to look past the product and the community and ask one question: where does the money actually come from? Six years later I moved into remote sales, and I’ve since generated over $10M in online sales. That’s my story, not a forecast for yours.
Questions to ask before you say yes to either
- Do I have to pay anything to start, or to stay active?
- Am I paid for selling to real customers, or for recruiting people?
- Who are my customers, and where do they come from?
- Is there a written agreement that explains exactly how and when I’m paid?
- Can I check the business independently, outside the person recruiting me?
For a wider checklist, read is remote sales legit? and legit work from home jobs vs scams.
Frequently asked questions
Is remote sales just MLM with a new name?
No. In remote sales a business pays you to sell its product to customers who have already shown interest, and you don’t buy stock or recruit anyone. If an “opportunity” asks you to pay to join or rewards you for signing people up, it isn’t a remote sales job.
Is network marketing illegal in Australia or the US?
MLMs can operate legally in both countries, but pyramid schemes are illegal. In Australia the Australian Consumer Law bans taking part in a pyramid scheme, and in the US the FTC treats recruitment-based schemes as scams.
Can I make money in network marketing?
Some people do, but the FTC’s guidance says most MLM participants earn little to no money once you count what they spend. Ask for an income disclosure statement and subtract every cost before deciding.
Do remote sales jobs pay commission only?
Many do, especially with online coaching and course businesses, while others pay a base or hourly rate plus commission. Ask how pay works before you accept, and expect results to take time while you learn the offer.
I was in an MLM. Does that experience count for remote sales?
It can. Talking to people, following up and handling objections are useful sales skills. You’ll still need to learn structured sales calls and how a business’s sales process runs, which is what remote sales training covers.
Results vary. Nothing here is a promise of income. See our earnings disclaimer.
Ready to learn a sales skill with no downline? Book a free call with the She Sells team.
