I just want to write this really quick post today to discuss this:

If you’re in network marketing, are you better off getting into a program that has a high cost of entry, and therefore higher commissions, or something that’s cheap, so anyone can afford it?

Here’s my opinion:

If you want to build a big business with a life-changing income and don’t want to wait years to get there, definitely choose a higher-end program.  Here’s why:

  1. The commissions are higher!  Same amount of work, much higher pay.  You’d think it would be harder to close those sales, but it isn’t.  My very first sales in my primary company were closed at a rate of 1 out of 8 people I talked to (and no, they weren’t friends and family.)  And my sponsor earned $38,000 on those 2 sales alone, including their qualifying sales!
  2. It’s a lot easier to target your prospects.  Most higher end business opportunities have a real, very specific product line, and they’re geared toward people who have already been successful.  When you have a clear picture of who you’re looking for, it’s a lot easier to find them.
  3. Look at 1 and 2!  If you’re targeting people who have the money (or credit) to get into a higher-end business, and have already had some level of success, you’re going to be working with people who
  • a) are very committed to making this work (unlike somebody who just spent $47 on a collection of e-books to resell) and
  • b) knows it takes some amount of work to accomplish anything.  These people realized they’re getting the benefits of owning a franchise, without all the high upfront costs and ongoing headaches.  They’re actually looking at this as a LOW-COST alternative!

That being said, if you’re looking at maximizing your income, it absolutely doesn’t hurt to be able to offer more than one opportunity.  When I first started marketing my primary business, I realized that there were plenty of people who would have done well overall, but who, for whatever reason, couldn’t “get” the big numbers. 

That’s why I started offering 2 lower-cost alternatives, and it’s worked out really well for me.  Especially right now, there are a lot of success-minded people who are simply broke.  You can be a life saver for them if:

  • You can get them into a program they can afford
  • You can teach them how to market and close sales
  • Their efforts with the first program make them enough money to fuel the start-up of the higher-end program.

If you can do that for people who need it, you’ll make a ton of money yourself (remember — everyone is paid based on the value they provide to society) AND you’ll like who you see in the mirror.

I did try a “super-cheap” program once.  I made a few sales really quickly, but most of the people I brought in never did anything with it.   I felt bad, so I quit that.  I would suggest if you offer anything really cheap like that, make sure there’s a “hands-free” option for running it.  Because the people you bring in, who aren’t willing to invest something to start a business, likely won’t want to do anything on their own to make it work.  Just sayin.