Top Tier Direct Marketing Companies Vs MLM Business Models

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 programsThere you have it, research each business model then decide which one would be the best fit for you and good luck with your research.

Five Tips to Build Your Network Marketing Business

Quite often I’m asked if there is a “secret” to building a network marketing business. The answer is both yes and no. I say no because there is really no one secret. I say yes, because there are many things you can do on a regular basis to build your business. I’d like to share five things you can do that will help you in building your business.

1. Learn about the company and the products. When you speak to others about what you are selling or joining your team, you’ll sound much more professional if you know about the company and about the product line.

2. Take an interest in self-development. Network marketing is a relationship business. We improve our relationship skills when we begin working on self-development. I attend seminars, take classes and read books all devoted to helping me become a better person. Even those who teach the classes I attend will share that they continually take classes to learn more themselves.

3. Make a one year commitment to your business. It takes time to find customers, build a team and develop a base for your business. While I always hear and read the words “businesses aren’t built overnight”, the reality is many people don’t really believe these few words apply to them. Commit to one year in business. After one year you’ll have enough experience and knowledge to make a new decision if a new decision is necessary.

4. Set an example for your team. As you build a team, your team members will look to you for guidance, support and training. If your team sees you market on a regular basis, they too will market. If your team sees you attend trainings and other company functions, they too will realize the value in these events. If you communicate regularly with your team, they in turn will learn to communicate with their teams.

5. Return phone calls and emails just as quickly as possible. Understand that not every communication will result in a sale or new team member, however each communication will aid you in building your own brand and your own reputation. If you get a complaint, take care of it immediately. If you get a product question, get an answer just as quickly as you can. You want your reputation to be one of a person who responds in a timely manner.

As you can see, there is no magic answer on how to build your business. The answer is to take steps daily to build your business and to build your name and reputation.

If You Want to Make Extra Money You Have to Be Involved in Network Marketing (Direct Selling)

Robert Kiyosaki said that “the network marketing and direct sales industry is recognized by many to be the fastest-growing business model in the world today. It is also the most controversial. Many people still have a negative reaction, claiming that many network marketing organizations are pyramid schemes. Yet in reality, the biggest pyramid scheme in the world is the traditional business corporation, with one person at the top and all the workers below.Robert Kiyosaki said that “the network marketing and direct sales industry is recognized by many to be the fastest-growing business model in the world today. It is also the most controversial. Many people still have a negative reaction, claiming that many network marketing organizations are pyramid schemes. Yet in reality, the biggest pyramid scheme in the world is the traditional business corporation, with one person at the top and all the workers below”Think about that for a moment. In a traditional Company, a sales manager and the person under him are hired by the company. The company is limited to the number of people that the sales manager can hire based on the financial resources the company has to pay salaries and on the traffic that any sales manager can handle. As soon as the sales manager is overwhelmed the company can hire another manager or convert any of those under him as new sales manager. This is the way that expands the organization horizontally as compared to Multi Level Marketing which expands the organization vertically.Robert Kiyosaki said that: “We are not members of any one network marketing or direct marketing business, but we do speak favorably of the industry. People who want to be entrepreneurs should consider joining one of these businesses before they quit their jobs. Why? Many of these companies provide essential sales, business-building, and leadership skills not found anywhere else. One of the most valuable benefits from associating with a reputable organization is that it teaches the mind-set as well as the courage required to become an entrepreneur. You will also become more familiar with the systems required to build a successful business. The entry fee is typically quite reasonable and the education can be priceless”I heard him say that if he were starting his entrepreneurial career all over again, he would start with a network marketing or direct sales business, not for the money but for the real world business training he could receive.So now the question is: What is Direct Selling or Network Marketing?It’s SimpleIt’s the business of word-of mouth. And, whether you realize it or not, you are already in it- you just aren’t getting paid for it. Let’s face it, when you tell a friend that they have to go see a new movie, and they do, does the director or studio send you a commission check for your referral? When you recommend a great restaurant to a friend, and they go there on your recommendation, do you get your next meal free?Owning your own direct selling business allows you to capitalize on something you already do and take advantage of one of the best kept secrets of the wealthy and happy: “passive” or “residual” wealth. To understand this concept, look at the example of a writer. The writer sits down, works for weeks, months, even years on a manuscript. The final product is produced and sold. And although writers may get paid an advance or a small fee, the real money comes from the royalties. They work incredibly hard for a short time, then sit back and collect the royalties. It’s usually a small percentage of the sales price or a fixed price per book or ticket sold.Think about that for a moment. In a traditional Company, a sales manager and the person under him are hired by the company. The company is limited to the number of people that the sales manager can hire based on the financial resources the company has to pay salaries and on the traffic that any sales manager can handle. As soon as the sales manager is overwhelmed the company can hire another manager or convert any of those under him as new sales manager. This is the way that expands the organization horizontally as compared to Multi Level Marketing which expands the organization vertically.Robert Kiyosaki said that: “We are not members of any one network marketing or direct marketing business, but we do speak favorably of the industry. People who want to be entrepreneurs should consider joining one of these businesses before they quit their jobs. Why? Many of these companies provide essential sales, business-building, and leadership skills not found anywhere else. One of the most valuable benefits from associating with a reputable organization is that it teaches the mind-set as well as the courage required to become an entrepreneur. You will also become more familiar with the systems required to build a successful business. The entry fee is typically quite reasonable and the education can be priceless”I heard him say that if he were starting his entrepreneurial career all over again, he would start with a network marketing or direct sales business, not for the money but for the real world business training he could receive.So now the question is: What is Direct Selling or Network Marketing?It’s SimpleIt’s the business of word-of mouth. And, whether you realize it or not, you are already in it- you just aren’t getting paid for it. Let’s face it, when you tell a friend that they have to go see a new movie, and they do, does the director or studio send you a commission check for your referral? When you recommend a great restaurant to a friend, and they go there on your recommendation, do you get your next meal free?Owning your own direct selling business allows you to capitalize on something you already do and take advantage of one of the best kept secrets of the wealthy and happy: “passive” or “residual” wealth. To understand this concept, look at the example of a writer. The writer sits down, works for weeks, months, even years on a manuscript. The final product is produced and sold. And although writers may get paid an advance or a small fee, the real money comes from the royalties. They work incredibly hard for a short time, then sit back and collect the royalties. It’s usually a small percentage of the sales price or a fixed price per book or ticket sold.