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Which would you prefer?

Postby Chris Tryon on Mon Jan 04, 2010 9:45 pm

I have a general question for my fellow better networkers.

There are generally two kinds of mlm's as far as pricing goes. High tier and low tier. With high tier (high-cost) mlms you need fewer people to start earning a decent income. With low tier (low-cost) mlms, you need more people to earn a decent income.

What makes sense to me, is that it is generally easier to find a lot of people with a little bit of money to invest in an mlm than it is to find fewer people with a lot of money to invest in an mlm.

Which do you prefer, high cost or low cost?
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Re: Which would you prefer?

Postby Tula Su on Mon Jan 04, 2010 11:08 pm

I can't say as I prefer one over the other, Chris, but the success of Wallmart will tell you that you are correct in saying that it's generally easier to find a lot of people with little money. That was Wally's whole philosophy when he started out selling ladies panties from the back of a pick-up. :mrgreen:

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Re: Which would you prefer?

Postby Lawrence Bergfeld on Mon Jan 04, 2010 11:59 pm

I would prefer to have the person who has the right mindset and is committed to winning big!! You do not have to start out rich to do that. Just remember that many of the famous people out there started from nothing and became millionaires. They did it with more cards stacked against them, like Henry Ford, Harvey Firestone, etc. The leaders who we can train can do better with the use of having the internet as the advantage over them!!

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Re: Which would you prefer?

Postby Michael B Wilbraham on Tue Jan 05, 2010 5:24 am

It's somewhat relative, I think. Personally I prefer to go with a business that has products that offer value, that I can generate customers with, who will purchase from me every month.

Generally, this will mean the more affordable type products, I guess. :)
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Re: Which would you prefer?

Postby Dave Kotecki on Tue Jan 05, 2010 8:16 am

It makes absolutely no difference whatsoever.

There are lots of people out there with lots of money.
There are more people with less money.

Those are 2 different markets that take different strategies to market to.
But if you think that it's easier to make money selling lots of stuff at a small profit then
making a bigger profit on fewer sales, I'd say you're looking at the question from the
wrong angle.

Selling is selling. You just have to identify your market and then target them with laser-focused
marketing. Whatever your market, the process is the same.

It simply doesn't matter what you sell.
It's how good you are at selling it.
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Re: Which would you prefer?

Postby Chris Tryon on Tue Jan 05, 2010 4:20 pm

Thank you for your posts. Dave, while I agree that selling is selling, an individual should get good at selling inexpensive items BEFORE they start selling higher-cost items. That would make sense.

If we are talking about a home-based business, you need to add in another component. Most people don't like selling. Also, it is about "staying in the game long enough to earn a profit" until you do get good at selling. The higher the cost, the higher the drop out rate from most home-based businesses. A lot of people just won't stay in a company long enough to earn a profit. They are products of the "me generation." They want results NOW. That is why there is such a high attrition rate among people who get started in home-based businesses. They don't fail, they quit.

You are right about products providing value. If a person is involved with a company and is truly benefiting from the products they are purchasing, they will probably continue to use them whether they earn a dime at selling them or not.
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Re: Which would you prefer?

Postby Lexie Pay on Tue Jan 05, 2010 11:47 pm

I agree to what you are saying. I prefer an individual should get good at selling inexpensive items before they start selling higher-cost items.If you want to have a great deal of business, you should sacrifice some things and be patient at most of your selling.For those people who try to create a little online income for themselves often use affiliate networks and promote products and services online in hope of a referral and sale, and therefore pay for the referral and sale.There are two primary compensations systems,Cost Per Action or CPA affiliate programs through websites like Click bank. Affiliate programs may not make you a stable enough regular income, but they can keep you from needing cash advance loans for quite some time.

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Re: Which would you prefer?

Postby Richard Bravo on Tue Jan 05, 2010 11:57 pm

.

It takes the same amount of effort, sales finesse and luck of the draw to sell a BMW as it does a Hyundai.
It all boils down to target market and your ability to successfully convey the "right" message to the "right" person.

Who's the right person? Easy ...
Someone looking to buy a BMW.
Someone looking to buy a Hyundai.
** Where it gets a little trickier is when you run into someone looking to buy a car.

So whether one product is "easier" to sell vs another is nothing more than:
a) Your value level is on par for the audience you'll be serving. (You've Got Game)
b) Your position in the market which your product caters to. (Be there when they come looking)

If you really want to Crush It .... sell both!
.
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Re: Which would you prefer?

Postby Sandeep Nath on Wed Jan 06, 2010 12:15 am

christryon wrote:Dave, while I agree that selling is selling, an individual should get good at selling inexpensive items BEFORE they start selling higher-cost items.


Dave is spot on Chris. It's a consciousness thing, not a money thing. It's as much effort to get a person to to put 5 bucks into someplace he feels he's getting conned. The trick is to have a non-con consciousness and presto, you will find you're not selling anymore!

Here's a tip: Selling is telling; Buying is asking. Ask questions and "Buy" (recruit) the right guys onto your team. Does that make sense in the light of things on your mind?

I could go on, but perhaps one-on-one as I coach. To answer the preference thing... certainly high-value. I find a better gentry there - a bonus! And a higher profitability-to-effort ratio of course.
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Re: Which would you prefer?

Postby Erica Jones on Wed Jan 06, 2010 1:06 am

Hey Chris
I think that if you build your sales funnel the right way with the right message going out to the right people you will make sales no matter what.

I think that the biggest think to consider is how you feel about the product, not the price. Are you passionate about your business and what it offers people? Does it fit in with your family and your lifestyle? Does the company have a good standing and record of success?

If you have a passion and the right people to talk to it about, you're all set!

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