Top Tier Direct Sales or Traditional MLM: which is better?
ByWhen considering top tier direct sales or traditional MLM companies, you want to know how each works so you can pick the one best suited to your abilities.
Top Tier Direct Sales
Top tier direct sales generally charge a lot more than MLM companies do. It isn’t uncommon for a top tier product to sell in the range of $1-10,000. That translates into a much larger commission for you each time you sell a product.
There is also little focus on a downline. The downline are the people you bring into a business in order to increase the amount of money you make from their revenue. While you do earn something for each successful person you bring into the company the majority of your revenue comes from the sales you make.
Traditional MLM
In a traditional multi level marketing organization the products you sell are generally priced below $100. That means that the commission you get from each sale is commensurately smaller than with top tier products. On the other hand, it is much easier to get someone to part with $100 than $10,000.
A significant portion of your income results from your recruitment efforts. Your job is not only to sell the company product, but to encourage people to join you in your efforts. If you are a good salesperson and have a network of friends you believe to be eager to try their hands at marketing, then this can add up to a tidy sum.
Another caveat with MLM companies: The structure of an MLM is not far removed from the illegal pyramid schemes of the 1990s. If you chose to go with an MLM company, do your homework to avoid trouble down the road.
In the Final Analysis
The truth is that you can make money with either business model. For people who are looking to make a small, but reasonable, amount of money for their efforts and MLM may be a good way to enter the online market.
If, however, you want to sell a high quality product and have the potential to make a six figure salary from your efforts, Top Tier direct sales are much more likely to fulfill your expectations.