Multilevel Network Marketing - The Pros and Cons

There are are 2 different types of network marketing business out there with completely different compensation plans.One is a multilevel network marketing compensation plan and one is a top tier compensation plan. One is not better than the other, but there are some major differences when building each one, that should be taken into consideration.The DifferencesIn a multilevel network marketing plan you get paid small commissions for the distribution of products and when you have built a large customer base and distributor base (downline) you no longer have to carry on working it as the autoship starts to work for you in a big way.In a multilevel network marketing plan then, the idea is to build up a huge residual income that allows you to negate the need to work anymore all while you get paid residual income.Then we have the top tier network marketing businesses. These are usually very expensive and expect to pay anywhere from $2,000 to $10,000 to join. The premise of a top tier business is to allow you to make a lot of money very quickly.The Advantages And Disadvantages Of BothIn your top tier business, you have the opportunity to earn very large commissions from the very start.A multilevel business pays you residual income for years, after the initial work is done you no longer have any need to go out to recruit or sell.A top tier business requires you to recruit perpetually. That is the downside, there is no mechanism in place to allow any sort of residual income.The downside of multilevel network marketing is the time it takes for you to build up the residual income. Even with an MLM (multi level marketing) you still have to invest heavily in your business and in both cases your education. Most new distributors usually spend all their money on advertising and can no longer carry on in business.Which Is The Best One?There isn't a best type of business. Both types of business have their advantages and disadvantages. For people who are more patient, they may be willing to join an MLM business, work it part-time and wait a few years to build up a nice residual check each month.However for investors, who like to get paid quickly, the top tier business model is their choice.Again it all comes down to individual preference and lifestyle. People can still run into difficulties, with both if they don't know how to market and can run out of money in both cases.