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If you are an mlm network marketing fan, please read this article. While I have a rich past in the mlm industry, there are three reasons why I chose top tier direct sales as my next challenge. First, I can be paid direct for most sales in the better “top tier” companies. Second, the small profit margins on mlm products require large amounts of traffic and big organizations to be profit sustaining. And third, the relationship requirement for downline growth is overwhelming when growing large organizations. I’ve got the experience to prove it.
In most online multilevel marketing companies, the company gets paid for the product direct and retail profits plus commissions grow and are paid out on a pre-established basis. This means that you have to wait for commission checks. If you are like me, I would rather receive my commissions direct so that my cash flow does not suffer. In other words, pay my mortgage and bills in a timely fashion.
In the direct sales industry, this is a major challenge overcome. At least for staple commission products, of the $1000 commission variety, receiving your commissions direct can be a breath of fresh air. Sell today, bank account grows today. Nothing like it.
Next, compare the profit margins of internet network marketing products versus the margins of top tier “big ticket” direct sales products. When network marketing online, we are not just talking about mark-up plus commission. We are talking about the cost per lead to produce sale. When you are paying for traffic, and your profit margins are low (2-27%) with product pricing between $50 and $200, you are talking about making $12 to $75 per sale. This low profit is prohibitive if you are not also running a strong SEO campaign for free traffic. How does top tier direct sales solve this challenge?
In top tier, the prices of the products involved should run from $50 to around $20,000 allowing anyone to purchase or start there business. There should be a substantial monetary incentive and a huge benefit from personal use. Real demand for the product or service must be evident. The after price profit margins must be 30% to 80% meaning even a high cost per sale can produce a large profit. Real profits to sustain growth should reach from $150-$7000 per sale. Game breaking profits must be evident and reachable by reasonably new direct sellers. How can anyone compare mlm marketing profits (and newbie results) with those numbers?
The final comparison is key for those of you who have built sizable mlm organizations in the past. Multi level network marketing organizations must be large to sustain big profits for the builders. This means that relationships must be managed in the downline groups. This relationship building is an ongoing task requiring group and individual phone, email and live meetings to sustain growth. This work is in addition to the work you must maintain while continuing to build traffic to your landing page to sustain growth. If you have done it before, you know its a tall order.
In the top tier direct sales industry, the best companies pay large commissions and allow overrides on personally sponsored only. This is good news. The relationship building required is serious on one level only and need only be casual on all downline levels. This relieves the pressure of an ever-increasing job.
In summary, being paid direct, having large profit margins of big dollar sales and not having an ever-increasing job of relationship building solves the mlm dilemma. Why network marketing when you can get involved in a top tier direct sales business, market direct and enjoy your life. Good Luck!
John Lee lives in Virginia with his wife and their two boys. He has many interests including family, sports and web marketing. Currently, he is guiding these projects: Web Mining 101.com, JohnEnjoysLife.com and Global Affiliate Network. Comments welcome: globalmarketworx@gmail.com.
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