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Many people looking to start home-based businesses look to Multi Level Marketing (MLM) or top-tier internet marketing, yet are uninformed about either industry. Either option can be lucrative, however in today’s market there are many reasons to avoid MLM. The following article will discuss the differences between each industry, and why top-tier marketing is currently the place to be.

Products

To begin, for anyone who’s unaware of what I mean by a “top-tier” internet marketing company, I am referring to a marketing company that generally attracts a high calibre customer… that is to say, a customer who is genuinely serious about starting their own home-based business. Top-tier internet marketing companies market products which generally pay $1000+ commissions up-front (meaning you receive your commission immediately). Conversely, MLM companies generally market lower-end products which generate smaller incomes, and which you will have to distribute more of to generate the same income. Typical MLM products are health juices, vitamins, beauty products, diet products, and so on.

Compensation

In MLM you are compensated not only by how many people are in your downline (people who you have personally recruited into the company), but also how successful your downline is. This can be problematic, as the attrition rate in MLM is currently 90% within the first 90 days… that is to say that 90% of MLM newcomers quit within their first 90 days in the business. Moreover, it would take literally thousands of people in your downline to be generate a $10 000 a month income. Building a downline of thousands is not easy when 90% of people you recruit leave you within 90 days.

With a top-tier internet marketing company, you can generate a monthly income of $10 000 with 10 customers or LESS a month. This income is not dependent on your downline… you receive this income the moment your new customer decides to join you (whether they decide to quit down the road is irrelevant).

Marketing

MLM companies generally do not provide their distributors with the best marketing training. The fact is that many of the best marketing techniques are simply not lucrative for MLM’ers because the cost of recruiting a new customer is greater than the income generated by that new recruit. As such, most MLM distributors are reliant on friends and family to join them in order to make a success of their new business. Unless you’re a fan of pitching your new business opportunity to friends and family and trying to convince them to join you, MLM is likely not for you.

In a top-tier company you will be marketing your opportunity the millions online searching daily for home-based business opportunities (not your friends or family). Moreover, the top-tier company you’ve joined will train you to market your opportunity with the best free and paid strategies. With such large commissions, many simple paid marketing strategies which are not lucrative in MLM can produce a great Return on Investment with a top-tier opportunity.

Cost

Some MLM’ers may like to argue that top-tier opportunities are more expensive, which generally is simply not true. Is a top-tier opportunity more expensive up front? Yes, but this is a one-time fee… one time, and that’s it. Furthermore, you will regain your initial investment much quicker as you will be receiving large commissions as you gain customers… you will not have to wait for your new customer to generate income for you. In MLM your start-up cost might be lower, but you’re going to be charged a monthly fee to buy and ship your product. If you’re in MLM for the long-haul, these fees will exceed the one-time fee you would have paid for your top-tier opportunity.

As a final note, if you decide to join an internet marketing company, beware who you join… not all internet marketing companies are top-tier, and a lot of them are flat out scams. Do your research and join a reputable company.

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Source by Matt Mossop