Thursday, October 4, 2007

MLM or Direct Sales Program - Which One Is Right For You?

When trying to decide on which home business to start working with to generate additional income, many times it comes down to making a decision between a standard MLM program and a program designed with more of a Direct Sales model. It is important to know the differences, because you need to match the program you choose with the goals you have set for your home business.

If your goals are more geared toward spending 2-5 years building a residual type of income, then a standard MLM program would be the way to go. In this scenario, you would be spending 5-15 hours per week retailing products and recruiting new distributors to join your team.

The bulk of your profits initially would be from either retail sales profit or fast-start style bonuses paid when you've recruited a new rep. Then, as your group builds over time, you begin earning a group override on the volume generate throughout your entire sales team.

It has been proven time and again that this 2-5 year plan, worked consistently week in and week out, can ultimately lead to a nice residual monthly income.

The key here is to stick with your plan and work it CONSISTENTLY, not just for a few days here and there. You need to be willing to delay the monetary gratification long enough for momentum, and earnings, to begin to build within your business group.

However, if you'd like to see larger profits more quickly, then a Direct Sales program with higher front-end payout might be a better choice for you.

These types of programs are ideal for folks who aren't as concerned with long-term residual income, although that is possible. A Direct Sales program puts most of the payout on the front-end of the compensation plan when a new customer purchases the program package. By doing so, a large commission is earned immediately.

This is very attractive to people looking to perhaps change careers and move into a full-time position quickly. It also appeals to folks looking to substantially and quickly increase their monthly income on a part-time basis, as opposed to waiting for a sales team to build and mature over a long period of time.

In either case, a Direct Sales program is an ideal choice for anyone looking to get into profit quickly. However, as the name suggests, a new rep MUST be willing to put forth a large personal commitment and effort -- there is no room for squatters waiting for other people to do all the work. The payoff for that personal effort can be tremendous.

So keep these points in mind when choosing a home business, and be sure to match your income goals with the program type you choose.

About the Author:
Visit Scott's website at to get more helpful information and powerful resources for internet marketers. As an added bonus, visitors can also receive a FREE 23-page report entitled "The Massive Traffic Formula".

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