MLM Or Top Tier Direct Network Marketing? Part 4 of 4

Interested in MLM or Top Tier Direct Network Marketing and want to know about compensation plans?

Multilevel marketing varies depending on the company. For the most part, you receive commissions when you sell products. If you sign up a consultant, you receive residuals on everything they do if you’re in a good company.

The amount of the commissions is going to be the kicker. In MLM, you are probably selling skin care, vitamins, energy drinks, household items or maybe a discount furniture store membership. All of these are going to be pretty inexpensive for the end user so what do you think the commissions are going to be like?

Low Investment, Low Commissions

When investing in MLM, if you’re not putting a lot in, you can’t expect a lot in return. There are a few cases where people have made a killing in MLM, but these are a selected few that started near the beginning.

In Top Tier, as mentioned in part 3, it is a much greater start up cost. Fortunately that means you have great commissions. You also don’t have to have nearly as many transactions to make great money. Instead of selling 5 people a line of skin care, you would need a single modest sale to equate the commission of the skin care.

Once you sell to that one person, you receive residuals on everything they do. Their membership fees as well as their sales.

No Extreme Downline

You won’t have the extreme downline with Top Tier because first of all, the start up cost narrows down the target market. MLM is for anyone who may want to “give it a try”. Top Tier is for serious entrepreneurs. Unless someone has a tone of money to throw around, they are usually going to give it their best shot.

My background prior to MLM and Network Marketing was medical sales to the aesthetic market. When describing to my friends the difference, I tell them its like your skin care rep. versus your laser rep. The skin care rep is going to have far more transactions and doing a lot of “busy work”, while the laser rep does far fewer demonstrations and has very specific offices to call on. Not everyone has money for a laser, but most can find a way to buy skin care.