MLM Tips: How to Pick the Best Home Business Opportunity

There are two types of home based business opportunities that you can get into, and your decision on which one to join will depend on what your goal is and, I’d go so far as to say, the type of person you are.

The two types of opportunities are 1. The traditional style MLM Company and 2. a high tier Direct Sales opportunity. These two are different in their structure and both have pros and cons, but no one type is better than the other, it just depends on what you prefer.

In the traditional MLM home business opportunity, the start up cost is usually below $1000 and the focus isn’t really on sales, it’s more on people. Because of the low entry fee, MLM’s sometimes attract people who aren’t really that serious about starting a business and expect for you to hold their hands throughout the whole process. This is not always the case but expect to come across some hobbyists along the way.

You make most of your money in a traditional MLM by recruiting people and then teaching them how to recruit as well. There are many levels that you will receive commissions from, thus the name “multi-level marketing”.

With this method, you reap the rewards of your team’s efforts and as your team grows and you recruit more, your residual income grows as well. Many people get into a traditional MLM with the dream of being able to build a business and then walk away and still be able to have high residual income checks coming in monthly, even if they don’t do anything but this is normally not the case. The less effort you put in will have an effect on your income. In an MLM there is also auto-ship fees, where you pay to receive the product monthly.

If you can network with a lot of people and grow large teams and help them duplicate, and like the idea of residual income then a traditional MLM home business opportunity may be for you.

In a high tier direct sales home business opportunity the entry fee is usually $2000+ and this cost to join usually attracts serious entrepreneurs and less hobbyists. With this type of business opportunity the goal isn’t residual income but instead the concept of “Get Paid Today”. The commissions that it may take you years to reach in a traditional MLM you can make in a matter of months with high tier opportunities. You can get paid between $1,000 – $10,000 plus on one sale. You’ll make less sales and recruit way less people but the high price tag per sale justifies it.

Being in a high tier business opportunity allows you to be more selective with who you work with, and you’ll usually attract like minded individuals who won’t have to depend on you every step of the way or blame you for their mistakes. It also allows you to get paid upfront and have more money to invest into advertising, allowing you to now advertise in places that other marketers cannot.

If you like to get paid high commissions upfront for your work, rather work with less people who are often times more serious about building a business, and you don’t have a problem continuing to work and realize that there most likely wont be any residual income for you once you stop promoting your business then a high tier home business opportunity may be for you.

Regardless of which opportunity you choose you will have to work hard and develop the skills necessary to become a good marketer so that you can not only grow your business but assist those who come under on you how to do it as well.