So you’re sick of the economy and your job, and you’re ready to start a home base business. The challenge is there is so many different opportunities to choose from that you don't know what opportunity to join. There are thousands of business opportunities to choose from, but in this article, I will go into the differences between top tier companies and network marketing companies. There are several differences and it’s important to know what they are so you can decide which one you want to pursue.
Firstly, let's go into top tier business opportunities. If you have a knack for sales, the top tier model might be right for you. Typically, top tier opportunities pay out big commissions on your personal sales and big overrides from sales made by your first 1 to 3 levels. Recently, there have been a few top tier companies that have rolled out a residual component to their compensation plan. However, in most cases, the majority of your income will come from upfront sales commissions.
The main reason i is called top tier is the price of the product you're selling. Some top tier businesses sell products that have a price range between $1,000 to $5,000 or more. For the average networker, this sounds crazy and impossible to market, However, if you are a pro at marketing, it really isn't a big deal. Expert marketers can sell a $40 product and a $5,000 product using the same techniques and strategies.
Also, top tier businesses typically pay huge commissions upfront. For instance, for selling a $5,000 prodcut, you can make a $2,500 to $3,000 commission.If you just make three sales every month, you'd earn anywhere between $7,500 to $9,000 monthly, which equates to about $100,000 for the year. And, that is excluding any override commissions from your organization. Looking at this, it’s easy to see why some people would pick a top tier opportunity to run with.
Now, let’s look at multilevel marketing, or network marketing. Network marketing is pretty much the opposite of top tier. When you market a product from a network marketing company, you’ll typically earn a $5-$100 commission. But, the residual income potential can be staggering. There are top producing network marketers earning 6-figures monthly just from residual income.
In order to make a significant income (six-figures), you'll most likely need to have a team of several thousand distributors. Which isn't a negative point.You'll just have to go through a great number of prospects,find 7-10 leaders who want to build large groups of their own and be a great motivator. IF you can accomplish that, you can potentially build an incredible lifestyle with this model.
At the end of the day, you have to make the decision.Which is more appealing to you? Working with a handful of leaders and making an incredible upfront income, or building a large group of tens of thousands of reps and making great back-end residual income?
If you can put forth a great work ethic, keep a positive attitude and plug into a successful system, you can create an incredible lifestyle with either business model. Just keep in mind, that whichever you choose, it’s important that you have a marketing and sales funnel system in place that will allow you to tothree things: Brand yourself as an expert, teach you effective marketing skills so you can generate 50-100+ leads a day, and make money from every prospect you get.
Hopefully, this comparison was useful for you. I wish you the best of luck and welcome to the industry!
Author Resource:-
Jaime Soriano wrote this Top Tier vs MLM comparison to assist people who are looking to start a home based business. To see the system that top earners are using to personally sponsor 20-40 people a month into their teams, visit Jaime’s MLM Training
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