Are you considering starting an online marketing business? Learn the difference between the internet’s two most popular models – Top tier direct marketing and MLM. Ok, let’s get started so you can make an informed marketing decision.
MLM Business model:
As most people on the internet know that MLM, or multi-level-marketing has been around for years and one of the more popular methods for both distributors and companies to generate sales. The distributor represents the company that produces the products or provides the services they sell, then they are awarded a commission based upon the volume of product sold through their own sales efforts as well as that of their downline organization.
These independent distributors will develop their organizations by either building a active customer base, who buy direct from the company, or by recruiting a downline of other independent distributors who will also build a customer base, thus expanding their overall organization and residual income. Most successful MLM marketers focus on volume by developing a wide and deep level of other distributors, thereby big residual commissions require a rather large downline.
The arrangement of distributors earning a commission based on the sales of their independent efforts as well as the leveraged sales efforts of their downline is one of the main attractions of MLM. As you will soon learn , this business model is quite different from top tier direct marketing and the differences will become clear.
Top Tier Direct marketing companies:
These companies and their members normally market higher end products, that carry larger commissions, without the monthly auto ship associated with MLM. Typically it is a one time sale that offers no or little residual income. Direct marketing usually attracts a more targeted qualified prospect that has expendable income and are more willing to take on the risk associated with starting and marketing a online business.
Top tier direct marketing usually attracts entrepreneurs who are working at the edge of internet marketing. These direct marketers are often the first to explore new trends and technologies. This “trial and error” approach is probably the best way to describe the operation methods. However, this risky approach is one of the reasons why most top tier direct marketers become successful I.E. capable of generating $10K or more per month in commission.
The top tier direct marketing companies model will probably have better marketing systems in place than their counterpart MLMers …for example:
* A fully integrated and personalized online marketing and customer management system
* Detailed traffic, lead and sales tracking capabilities
* Professional call center to assist in closing member product sales
* Comprehensive video training library
* Marketing plans for variable budgets and levels of experience
* Master Marketing Program that teaches a combination of traditional and contemporary Internet marketing techniques
* Daily entrepreneurial and mindset training
* Business leadership programs
There you have it, research each business model then decide which one would be the best fit for you and good luck with your research.
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