Top Tier Direct Sales Vs MLM

Top Tier Direct Sales or MLM, what’s it gonna be? While both fall in the category of the Direct Sales industry, they are very different business models that both carry advantages and disadvantages. So, for the purpose of this little piece, I’m going to help clarify a few things for you. Maybe after this you will be able to decide which is the best direction for you.

Top Tier Direct Sales: If you’re simply a sales person, this is for you. If you’re used to being paid commission only and your income is determined on your production only, this is for you. Do keep in mind, however, that a good majority of Top Tier Direct Sales companies do offer a residual incentive. The residual incentive is not going to be the bulk of your income, your straight sales volume and commission will be the determining factor of your success. The reason it is called Top Tier is simply because of the price of your item. This ranges from anywhere on the low end of $2,000 up to, and possibly over, $20,000. If you are someone who is involved in MLM this may seem like a very high price to get involved with an opportunity, especially if you’re having difficulties selling $40 bottles of vitamins. I want you to keep in mind that it is just as easy, if not easier, to sell a $20,000 item as it is a $20 item. I’m serious! You’ve already done all of the Marketing and Advertising. If your sales process is well thought out and effective, it becomes the same game only with more zeros!! Also, most Top Tier Direct Sales companies pay great commissions. For instance, if I sell a $20,000 item, I have the opportunity to walk away with over $10k. Not bad for one sale. Now, think about turning up the advertising and Marketing and averaging one or two of those a week and you begin to see the draw towards this business model.

MLM: Now, with this business model, the payouts are practically complete opposites. Your largest up front pay day might be $50. And let’s face it, that’s pretty much paid out to gain enthusiasm and recoup some up front costs. Your residual on the other hand can grow to be an absolutely staggering amount of money. It is not uncommon in this industry to see Top Earners in MLM companies making 6 figures a month from residuals. If you’re planning to go this route and have your dreams set on this type of business model, you are going to need to have a system in place that duplicates your success. The fact is 80% or more of your team will do little to nothing. So, you have to be an extremely good leader and motivator to enable your teams success. Get yourself 5-10 great leaders on your team and you’ll have yourself one heck of an organization. Simply do the math… If each of you can personally sponsor 50 people per year, your business grows to 250-500 people based on the amount of leaders you have. If you sponsor this many people and have that many leaders, I promise you your organization will be much larger than just 500, it would probably be closer to 5,000 or more. At this point you’re walking on stage and becoming a star in your company.

So, the decision is yours. What sounds better to you? Making huge up front commissions and smaller residuals, or making small up front commissions and huge residuals? There are many factors to think about when deciding which direction to head with your Direct Sales career. Keep in mind, whether it’s Top Tier Direct Sales or MLM, this industry always rewards leaders and those wanting to work to build a big business that generates a lot of Volume. I hope this helps you on your Journey. Until next time, Happy Marketing!