Network marketing startup basically means prospecting several different multi-level marketing opportunities, what is usually referred to as home business opportunities, in regards to the possibility of running your entire business operation from home.
A successful network marketing startup must include top tier direct sales companies during the research. Top Tier Direct Sales is a term relatively new, and it classifies premium network marketing companies that have chosen to promote their products utilizing affiliate representatives. A Direct Sales strategy does not require the affiliate to keep any inventory, be liable for the products, or be in charge of shipping/handling.
Direct Sales representatives are solely in charge of marketing. For that, most companies will usually pay a 60% commission on every sale, which is by far the most lucrative payout for any network marketing startup.
Top Tier Direct Sales Vs. Old-School MLM Unlike old-school MLM, Direct Sales does not require “pass-up” sales, which means representatives generate revenue from the very first sale. That’s where Top Tier comes into place: Direct Sales companies focus on premium products, and prize the quality of their representatives, rather than the quantity. This means that a Top Tier Direct Sales company startup will range from $2000 – $9000, which is much more than any regular MLM.
The most important part of the “Tier” system is the residual income generated with the sales: to focus only on the most qualified representatives, top tier direct sales companies will offer MLM-style multiple levels of compensation for their top products. This hybrid system fills many gaps of old-school multi-level -marketing compensation plans, because:
- Direct sales representatives generate revenue from the very first sale on the entry level product (which usually costs $1500 – $1800, with a commission of $1000)
- Residual income is massive, but only for those willing to invest more seriously in their Top Tier Franchises (2nd and 3rd tier products start at $8500 and $14500, respectively, with $5000 and $9000 commissions per sale)
- By focusing on the quality of its members, and offering massive commissions, top tier direct sales eliminate the need for extensive “downlines” – a handful of active representatives will produce $10,000 monthly with only two 2nd tier qualifying sales.
Network Marketing Startup – Initial Investment Decision
When prospecting for a network marketing startup, your options are extensive: from Avon, Amway, and Herbalife, you get a more recognizable brand name (whether this is good or bad is relative), and a fairly low initial investment, but commissions only add up to $3-$10 per sale, and residual income is only achievable with over 200 members in your personal organization.
If you’re serious about starting a solid network marketing business, that will last longer than any recession, your research needs to focus on top tier direct sales.
However, a higher initial investment means higher commitment, and most people will never commit to their own business. As soon as the economy “gets a little better” or they get more hours on their paychecks, they drop their network marketing startup.
No matter what your decision is, take action! The alternative will cost more than any direct sales or MLM ever will.