Traditional MLM Vs High Ticket Program – Which One Is Better?

By:Jaime Soriano July 22, 2013

Network Marketing

Business WomanMLM Vs. Top Tier – Which One Should You Choose?

So you’re sick and tired of the declining economy and your dead-end job, and you’re ready to start a home based business. Sounds pretty simple, right?

For the most part, it is… But the challenge is there is so much information available because of the Internet, that it’s hard to choose what kind of opportunity you should join.

While there are literally thousands of different business opportunities and companies in the market place today, I want to briefly break down the differences between traditional Network Marketing, or MLM, business opportunities and High Ticket (or Top Tier) programs. While you can build a home business and make money in both, there are several significant differences and it’s important to know what they are so you can decide which one makes more sense for you.

Should You Join A High Ticket Program?

First of all, let’s talk about High Ticket programs. If you are a pretty good salesperson, or tend to be very persuasive, then a High Ticket program might be a good fit for you.

Typically, High Ticket programs pay out big commissions on your personal sales and significant override commissions from sales made by your first 1 to 3 levels (typically).

Recently, there have been a few High Ticket programs that have introduced out a back-end residual income component to their compensation plan. With that said, in most cases, the majority of your income will come from upfront sales commissions made from your personal sales.

The main reason it’s called High Ticket (or Top Tier) program, is because of the price of the product or service you are marketing. Some High Ticket programs sell products or services that have price ranges starting at $1,000 all the way up to $15,000… and sometimes even more. The highest I’ve seen is a $20,000 price tag for a financial education and training product.

Because of the large profit margins, High Ticket programs typically pay big upfront commissions. For example, for selling a $5,000 product, you can potentially earn a $2,500-$3,000 commission. Following that example, if you just made 3 personal sales a month, you would make anywhere from $7,500- $9,000 a month, which equates to about a $100,000 annual income. And, that’s not including override commissions earned from sales made by your team, which can potentially double or triple your income. Looking at this, it’s not hard to see why some marketers would join a High Ticket program as a home based business to build.

Should You Join A Traditional MLM Company?

Now, let’s look at traditional Network Marketing, or MLM. With traditional MLM, it’s almost the opposite of a High Ticket program. When you sell a product or service from an MLM company, you’ll typically earn a $5-$250 commission. However, the residual income potential, after you build a large organization of productive distributors is pretty incredible.

I personally know some top earners in MLM companies who are currently making $100,000+ a month in residual income. In fact, the #1 Income Earner Industry Wide comes from a traditional MLM company, and is earning an estimated $1.4 million a month.

Unlike High Ticket program, in order to make a big income (for example, $100,000 a year and up), you’ll need to have several thousand distributors in your downline group. To be clear, that isn’t necessarily a bad thing since your income will be leveraged over a much larger group of people. You just need to really accept the Law of Large Numbers and find 7-10 leaders who are self-motivated to build large downline groups of their own. If you can do that, and get your downline group to several thousand people, you can build a significant residual income, and an incredible lifestyle for you and your family.

So Which One Is Better?

At the end of the day, the decision is yours to make. Both business models have created millionaires, both business models are extremely powerful, and both models have their advantages and disadvantages.

The questions you should ask yourself are:

Which business model makes more sense for you and your personality?

Would you rather work with a smaller handful of leaders and make an incredible upfront income?

Or would you rather build a large group of tens of thousands of reps so you can potentially build a significant back-end, long-term residual income?

If you have a solid work ethic, a positive attitude and you plug into a successful system, you can create an incredible lifestyle with either business model.

Just keep in mind, that whichever you choose, it’s important that you have a self branded Attraction Marketing and sales funnel system in place that will allow you to to 3 things: Brand yourself as a leader, teach you effective marketing skills so you can generate 50-100+ leads a day, and make instant profits from every one of your prospects. This is the one that I personally use, and it’s hands down the very best online marketing system around. You can use it too if you want.

I hope this helps you in your decision making process. Best of luck and welcome to the Industry!

To Your Success,

Jaime Soriano

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P.S. Whether you prefer a High Ticket program so you can make significant upfront commissions, or a traditional MLM business so you can build a residual income, this 100% Commission Program will be right up your alley. It’s the only program that has successfully combined both models… and YES, it’s the online program I’m personally building. (Click here to see the primary MLM business I’m working) 

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