MLM Direct Sales Model vs Top Tier Direct Sales Model

MLM Direct Sales Model vs Top Tier Direct Sales Model

MLM Direct Sales Model vs Top Tier Direct Sales Model

By Jason-Dennis Stewart

Many newcomers to home-based businesses and entrepreneurship look at opportunities having a multi-level marketing (MLM) direct sales model for compensating those involved in the organization. In the MLM model, a participant is compensated by the direct sales of other partners that they have personal sponsored, but also through the direct sales of those who have been personally sponsored by their personally sponsored participants, etc. These compensation plans normally provide for varying degrees of compensation through many "levels" in each participant's network or downline, however, a participant will normally need hundreds or more in their downline in order to earn six-figure income or more. Like any business model, there are pros and cons to the MLM business model. There is typically a relative low startup cost to get involved with an MLM opportunity. This is very attractive to most people, therefore many people from all different walks of life jump into MLM opportunities. However, since most people do not have marketing training or other business skills, there is a very high attrition rate. Most statistics say that at least 90% of new participants in MLM opportunities quit the business within 90 days. It's clear to see this poses a serious problem to most people who are involved with MLM opportunities; however, there are ways that this "war of attrition" can be successfully overcome. Successful participants of MLM opportunities can earn residual incomes that are quite significant. This opportunity for a sizeable residual income is probably the most attractive feature of MLM opportunities.

Top Tier Direct Sales Models have notable differences than MLM Direct Sales Models. Top Tier models put much more emphasis on the sales that the individual participant makes directly, and much less on the downline after the first level, if any. It is possible to earn a six-figure income within a shorter period of time with the Top Tier model; however, opportunities with the Top Tier model are much more expensive to start, and the products or services that these products market are typically more expensive as well. These high start-up costs normally eliminate many interested candidates for these types of opportunities. Opportunities with Top Tier models normally attract sales people who enter the opportunity with considerable training and experience since most of the income will be generated through their own personal efforts, or the efforts of their first-level downline.

Ultimately, the decision between MLM and Top Tier opportunities is really a matter of taste. What would you rather do? Would you like to concentrate on direct sales and place less importance on recruiting of business partners, or would you like to recruit a handful of leaders who are interested in building a massive organization? A very significant income can be obtained from either business model; however, it will take effort, consistency, and enthusiasm to be successful. While there is no "magic pill" for success in either business model, you will need a system to generate targeted leads in order to constantly funnel people towards you and your opportunity. This marketing system should be easy to duplicate, so that it can be shared throughout your organization to achieve results.

Whichever type of opportunity that you choose, hit the ground running and stay motivated. Good luck to you, and I wish you much success in the industry.

Get more secrets that high income earning network marketers use to build massive organizations. For a limited time, Jason-Dennis Stewart shares the network marketing lead generation secrets that will allow you to grow your downline, and even make money when people DON'T join your downline. Get your FREE access here!

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