1 - Get Paid More for Your Time
Let's use this analogy. If you sell real estate, which price homes would you rather sell; ones that cost half a million or ones that cost a million? Obviously the higher price because the commissions are bigger. The same applies to network marketing.
At the end of a day of making 100 cold calls (or generating 100 leads to your web page) to make 1 sale, would you rather earn a $100 or a $1000 commission? The answer is obvious. Not only does the higher commission mean your worth per hour goes up, but also any internet marketing your doing (especially pay-per-click) is more easily supported. Even if you're working part time, and generate 1 high ticket sale per week, you're still earning $1000 a week. Now, the MLM Network Marketing proponents would tell you that the big money isn't really made up front; rather its made later in the monthly residuals. Let's explore that argument and our next point.
2 - It Takes Less Sales To Earn A Reasonable Monthly Income in Direct Sales
The promise of MLM Network Marketing has always been about earning big residual checks from sales made by your team (e.g., leverage). Check your compensation plan and see how many active consultants you need in your downline creating at least one sale a month in order to earn a reasonable full time income (usually defined as $4000 a month or $48,000 a year)? Some plans require anywhere between 500 and 1000 active reps making at least one sale every month to create that $4000 a month. Counting for attrition, you would have to average sponsoring one new member a day for at least 18 months.
In a high ticket Direct Sales company, 1 new member a week (instead of a day) can mean as much as $4000 a month (and in some companies $40,000 a month!). This isn't something you have to work up to either. You can build that income within your first few months, rather than your first few years.
Now, a myth about the Direct Sales industry is that you don't receive residual commissions. You do; the difference is it's usually only one or two levels below you (like the insurance industry). Regardless, because it's high ticket, the residual commission is still usually at least ten times higher than the front end commission on a MLM Network Marketing company. So what about attrition? Next point.
3 - More Committed Team Members in High Ticket Direct Sales
MLM Network Marketing companies with low ticket items are infamous for their high attrition rates (as much as 85% in some cases). Why? It's the cost of entry that is a key element in determining if people "stick". The typical price of entry in a low ticket MLM is typically about a couple hundred bucks, so in general, most people who join aren't really that committed because they don't have much at risk and can walk away without giving it a second thought.
The typical entry cost in a high ticket Direct Sales company is usually around a couple thousand dollars. The prospect will think much harder about their decision, and once in your business, they are much more committed to sticking with it because they have more at risk, i.e., more skin in the game. Could they drop out? Sure. But what you will find is overall you have a much more committed team member, who will stick it out longer, and because of that, is more apt to generate sales, which in turn will generate you a much larger residual commission.
There's no question that Network Marketing works, and with it you can earn four, five and even six-figures per month. There's also no question that the quicker path to prosperity comes from joining a high ticket Direct Sales Company. Multi-level network marketing companies with a low ticket item simply don't pay enough or build residual income quickly enough, to compensate for the amount of time it takes to build a downline, especially when its evaporating as quickly as you try to build it. For anyone who is thinking about getting into the Network Marketing industry, and is shying away due to the cost of entry in a high ticket Direct Sales company, think carefully about the long term aspects of that decision.
