Home Based Business Franchise Review: MLM v Top Tier

Multi-level marketing and direct sales...peas in a pod or completely unique from one another?

The home based business franchise industry is teeming with offers. Daily, 'too good to be true' offers seem to bombard us every hour. The 'traditions' of both MLM and direct sales are quickly becoming archaic due to the emergence of 'Top Tier'. MLM compensation plans are struggling to even stay attractive in the face of top tier opportunities, and let's face it, old school 'marketing' methodology in traditional MLM is laughable when compared with actual marketing and promotion.

In this article I will cover the pros and cons of each and let you decide which seems more suitable for you.

Let's begin with MLM since it already has the general spotlight.

Home Based Business Franchise #1: MLM

What I feel works is:

• Most companies are focused on creating Leaders, this industry is like a daily personal development course.
• Everybody wants residual income, MLM may be the place to get it.
• Usually very low to mid-range startup costs. Average: $200-$1500, this can be very attractive.
• Top quality products with incredible efficacy, great science, and truly useful applications.
• Endorsements from global heavyweights such as Former President Clinton, Donald Trump, Robert Kiyosaki.
• Products are very often 'consumables' which means ongoing orders and more passive income.

What I feel doesn't work is:

• Most companies have us purchase a mandatory 'auto-ship' each month just to qualify for commissions. Although this is one of the keys to long-term residuals, it can be a strain on running the business, and downright debilitating if we need to stop operating the business for any reason.
• Ongoing auto-ship will eventually offset the low startup cost.
• Nearly every company puts Internet marketing and proper, time-tested attraction marketing principles on the back burner...if at all. Web 2.0? Oh sure, that will be coming right after pre-launch....or maybe after the first year...or maybe...or maybe...
• The number of people we will need in our downline is MASSIVE. Usually to the tune of thousands of people...if we ever hope to make a cool 5-figure monthly income.
• Attrition, attrition, attrition! Because of the 'low risk' startup costs, people tend to not have enough skin in the game so to speak. With the mass of information and offers online, we tend to hop onto the next big ground fool (oops, I mean ground floor...) opportunity.
• MLM is filled to the brim with complainers. The MLM industry seems to attract multitudes of people who will 'try it out to see if it works'.....and then justify and blame when it doesn't just magically set them free: 'Auto-ship is too expensive', 'I don't like to market or promote', 'I can't sell', the list is endless and concise and ludicrous.
• The tiny checks most people receive in their first year in business are a complete joke.
• The low start up cost also attracts the type of people who are more interested in a hobby rather than owning and operating a business, and these same people will definitely jump ship the moment a shiny new 'ground floor opportunity' comes along.

Home Based Business Franchise #2: Top Tier Direct Sales

What I feel works is:

• G.P.T - Get Paid Today.
• Tends to attract serious entrepreneurs rather than 'tire kickers'.
• Strict qualification processes.
• Excellent, cutting-edge, attraction marketing principles.
• Most Top Tier opportunities have great double-edged sword business models. This means there is a strong front end and a very lucrative and complementary back end for maximum profits and long-term stability.
• MASSIVE up-front commissions help keep momentum going in the first few months while the business gains traction.
• Many use an SLO or 'self liquidating offer' on the front end, making it easy and often profitable to generate leads.
• Great training on proper lead-generation.
• Attracts 'Top Tier' people because of the typically higher startup costs.
• Cultivates leadership.
• Incredible support and training from Internet marketing's top income earners Not just celebrities and MLM leaders, but actual Internet Marketing Millionaires.
• Juicy residual and passive income. Where in MLM we need hundreds and thousands of team members, in Top Tier you can build effective teams of just dozens of people and make even greater commission checks than in MLM. We can work much more closely with team members and help them grow their businesses.

What I feel doesn't work is:

• Startup cost can be very high for some.
• Some companies have products/services that don't justify the cost and won't support long-term stability.
• Even Top Tier opportunities have their fair share of 'snake oil salesmen'.

In conclusion, it is my opinion that any home based business franchise opportunity can work if we are the right person with the right knowledge. Unfortunately the MLM industry tends to attract people who resent marketing and promotion, so they're dead from the word 'go'. Most Top Tier opporutnities actually teach professional marketing and promotion...not the '3 foot rule', 'hotel meetings', 'house parties', 'cold-calling', and other unmentionable methods that the MLM industry is seemingly terrified to let go of. I feel that Top Tier Direct Sales (some, NOT all....) opportunities are far superior for both first time and seasoned entrepreneurs due to the elite caliber of the community, training, and resources.