Tuesday, August 18, 2009

MLM vs. Top Tier Direct Sales

I get asked the questions all the time; which is better, MLM or Top Tier Direct Sales? Without just jumping right out and declaring one a victor over the other, there are some criteria you've got to go over. These to business models are very similar in the sense that you are going to be selling a product and be paid based on your volume. By the way, if you're going to join a business or opportunity and someone tells you that you won't be selling anything you should run. Without sales of some sort of product or service there would be no revenue except for the initiation fees and that is frowned upon by the government. I know, can you believe they actually want you to operate your business like a business!?! Anyway, let's get in to MLM vs. Top Tier Direct Sales.

Becoming Profitable: Many times with a Top Tier Direct Sales company you can be profitable after just one sale. This is simply because the amount of money you earn upfront is substantial (often in the thousands of dollars.) With your traditional MLM business it's going to take a lot of work a a very large producing downline before you begin to see thousands of dollars.

Residual Income: These days it's nearly impossible to research a company or an opportunity without being hit over the head a thousand times about residual income. I've got news for you, TRUE residual income produces whether you do or not. With traditional MLM if you stop recruiting and stop distributing you will eventually lose some of that hard earned residual income. And God forbid Johnny takes his wife and kids on a vacation, he's your #1 producer! What are you gonna do when he's not working. Or worse, what do you do when he decides to leave and do something else?

Lots Now, Lots Later or Both: Top Tier Direct Sales is known for allowing the relative new comer to stuff $5k-$10k/month in there pocket repeatedly. This is simply due to the commission structure. With a good Top Tier Direct Sales company it is realistic to make $400+k/yr. averaging one sale a week. Can you say the same about MLM? With MLM you need to build a HUGE organization before you begin to see big money.

At the end of the day it is up to you Mr./Mrs. Entrepreneur to do your due diligence and research the pros and cons on your own. However, if you want to get profitable right out of the gate and stay that way, I would strongly look into a career in Top Tier Direct Sales. There isn't a business model around that rewards those who want to work more than this industry. I've attached a video for your viewing pleasure. I hpe you like it. Until next time!

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