AVANT, Top Tier or MLM Business
Comparing Top Tier, Direct Sales and a Traditional MLM
I get asked all the time. Al Rod, what do you think about this MLM opportunity?
This is ONLY one example of a traditional MLM. Lets say its one of the hot new binary hybrid compensation plans that say they pay 50-55% commission.
Wrong!
Theres breakage meaning that for every $100 worth of water or juice you buy; you will be credited with a lower percentage of commission-able volume and that can range from 50% to about 77% of the actual dollar spent. Thats huge and right away decreases what you think you would earn. Then there is breakage on rank advancement which means that if you dont qualify for a certain bonus or rank even though you may have the dollar volume; the company keeps this portion of the money and therefore reduces the actual payout.
Okay auto-ship. Lets say that you spend $250 per month because you are at a certain rank level that requires 4 boxes or 4 cases of this or that. Well, thats $3,000 a year in product or $15,000 a year in the next 5 years of business and more over a 10-20 year career. This isnt good or bad; just the facts.
Oh and we said this is a binary. I realize you will get the whammy bammy bonus, maybe the car bonus or the impossible to calculate 2% global bonus but the binary pays on the lesser leg. Binary means you build two team or two legs; a right and a left one AND if one runs away you could effectively have 1,000 people on one leg and 200 on the other. Yes, you guessed it; you get paid on the lesser or smaller leg to the tune of about 10% or so. 200 people on the lesser leg consuming 100 points of product per month is, $20,000 in volume or about $2,000 a month.
Top Tier has their pros and cons
It is more expensive upfront to join most of these business models to the tune of $1500 to $2000 but there is no auto-ship with most of these companies (check for specifics) and that should be considered.
The next thing to consider is the upfront payout. In a traditional MLM, you get someone to join for say $499 and you make anywhere from $90 to about $140.
In a top tier, a $1500 or so sale earns you about $1,000. It takes no more effort to bring someone in at a higher level than at a $499 and $250 level and yet the upfront money is huge. Four sales monthly or one a week in a top tier can earn you $4,000 per month not counting the passive or residual income. In a traditional MLM if you sponsored one a week you may earn about $400 month (huge difference).
This $400 a month helps pay your auto-ship of $250 and the company replicated site, shipping and maybe you have $100 at best left for you; something to think about.
Finally, Top Tier tens to attract a more motivated entrepreneur and pulls lots of people that are not in MLM or network marketing as the higher income and professionalism of some of these companies s very appealing. The marketing strategies also typically make more sense than the MLM home parties and chase your family and friends scenarios.
Al Rodriguez is a long time entrepreneur having spent 20 years as the owner of a multiple mortgage offices, a real estate franchise and real estate investor. A few years ago he turned this knowledge and began a coaching company for these industries and today has transitioned into helping others accelerate their success in a home based business with a can-do style and real world marketing strategies.
Below you can find details on a great Top Tier that makes the most sense as well as a free mastermind and list building information to hone your skills; no matter which is your preferred business model.
More details on Avant: http://OneYearIncomePlan.com
Marketing and Mindset Training: http://Join-The-Tribe.com
AVANT, Top Tier or MLM Business
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