To be entirely clear, multi level marketing does not always mean "scam". There are a lot of con artists who go under the guise of offering business opportunities through MLM, but these people do not represent the entirety of multi level marketing. That said, the sheer fact that that is a possibility is already a major difference in direct sales vs multi level marketing. Still, the following comparisons are meant to be fair and unbiased to allow you to make an informed decision between both options.
Direct Sell Means Earlier Profits
Because of the pyramid like structure of multilevel marketing, it could be months or years before your first profit. In fact, if you don't know how to milk it for all it's worth, you might never see any return on your investment whatsoever. It's not that all MLM programs are scams, but there are a lot of scams masquerading as legitimate MLM programs.
With direct sales, you simply buy the product and sell it to the customer. This means direct profits and little risk of being conned out of your investment.
Direct Selling Means Direct Business
Because the primary relationship of direct selling is a customer/seller relationship, you get paid directly by your customers. With an MLM setup, you don't sell to the customer, you sell to other marketers, and you're really just another cog in the wheel of the vast machine of the MLM company. It is, essentially, not really an opportunity to be a business owner but to be a middleman.
Direct Selling is Much Simpler
MLM can be incredibly confusing, especially because each program uses its own structure and plan, and because... Well, the entire structure of the business is very roundabout. With direct selling, it's just a matter of gathering the product, setting up a site or storefront somewhere, and then selling the product. It really is as simple as we're making it sound.
Direct Sales are Lower Risk
A study last year showed that just one in ten marketers in a certain company in the UK actually made any profits whatsoever. Not a good ratio. Not all MLM companies are the same, but the fact remains that many of them will string you along for quite awhile before you're making any money. Not so when it comes to direct sales, which come down to simply getting the product and selling it to customers.
Direct Selling is SELLING
The focus of MLM isn't really on selling, it's on recruitment. When you have thousands of salesmen and very few customers, then it becomes obvious that the real profit is to be made on the "business owners" and not on a real, legitimate customer base. If you really want to be a business owner, if you really want to make something for yourself, try direct sales.
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A Look Into Direct Sales Vs Multi Level Marketing Businesses