Top Tier Vs MLM – Which One Should You Choose?

From The Desk Of Jaime Soriano, Attraction Marketing Coach

So you’re sick of the economy and your job, and you’re ready to start a home base business. The problem is there’s so much information available that it’s hard to choose what kind of opportunity you want to join. Now, while there are literally thousands of different business opportunities in the market place today, I want to briefly break down the differences between top tier, or high ticket, business opportunities and multilevel marketing, or network marketing, business opportunities. There are several differences and it’s important to know what they are so you can decide which one you want to pursue.

First, let’s talk about top tier opportunities. If you are a good salesperson or tend to be very persuasive, then a top tier business might be right up your alley. Typically, top tier opportunities pay out big commissions on your personal sales and big overrides from sales made by your first 1 to 3 levels. Recently, there have been a few top tier companies that have rolled out a residual component to their compensation plan. However, in most cases, the majority of your income will come from upfront sales commissions.

The main reason it is called  a top tier business, is because of the price of the product or service you are marketing. Some top tier companies market products that have prices that range from $1,000 to $5,000, and sometimes even more. Now, for the average network marketer, selling products that cost this much might sound impossible. But, if your a professional marketer, it actually doesn’t make that much of a difference if you’re selling a $40 pack of vitamins or a $3,500 high ticket product. Professional marketers can market either with the same effort and get the same results.

In addition, top tier companies typically pay big upfront commissions. For example, for marketing a $5,000 product, you can potentially walk away with a $2,500-$3,000 commission check. If you made 3 sales a month, you would make anywhere from $7,500- $9,000 a month, which is around $100,000 a year. And, that’s not counting commissions from sales made by your team, which can potentially double your income. Looking at this, it’s easy to see why some people would pick a top tier opportunity to run with.

Now, let’s look at multilevel marketing, or network marketing. With network marketing, it’s practically opposite of top tier. When you market a product from a network marketing company, you’ll typically earn a $5-$100 commission. However, the residual potential is pretty incredible. I personally know some top earners who are currently making six-figure a month in residual income.

Unlike top tier companies, in order to make big money (100,000 a year and up), you’ll need to have several thousand people in your group. Which is not a bad thing. You just need to really accept the law of large numbers, find 7-10 leaders who want to build large groups of their own and be a great motivator.  If you can do that, and get your group to several thousand people, you can build an incredible lifestyle for you and your family.

Ultimately, the decision is yours to make. Which model makes sense for you and your personality? Working with a handful of leaders and making an incredible upfront income, or building a large group of tens of thousands of reps and making great back-end residual income?

If you can put forth a great work ethic, keep a positive attitude and plug into a successful system, you can create an incredible lifestyle with either business model. Just keep in mind, that whichever you choose, it’s important that you have a marketing and sales funnel system in place that will allow you to to 3 things: Brand yourself as a leader, teach you effective marketing skills so you can generate 50-100+ leads a day, and make instant profits from every one of your prospects.

I hope this helps you on your process of making your decision. Best of luck and welcome to the Industry!

Jaime Soriano wrote this Top Tier vs MLM comparison to assist people who are looking to start a home based business. To see the system that top earners are using to personally sponsor 20-40 people a month into their teams, visit Jaime’s MLM Training

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Jaime Soriano
Entrepreneur, Marketing Coach & Network Marketing Professional

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