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Maybe you’ve heard the term “top tier opportunity” in a sales pitch lately, but did anyone ever take the time to tell you what that really means? It may not be what you think.
Like you, I have heard this term bandied about, but never have seen or heard a good solid definition that I could take with me. Or one that really satisfied my desire to understand. Top tier is a term rooted in Multilevel marketing that refers to the topmost distributor in an organization – usually it’s a Direct Distributor or whatever title the company gives, maybe Director or Area Manager, but it nonetheless refers to the affiliate at the top of the organization.
In multilevel marketing this is the person who makes the big bucks, mostly because of the sales volume of their team. They have earned the right by sponsoring enough people and moving enough products, to be in the top percentage pay bracket that the company offers. Thus they have reached the ‘top’.
However, there are several companies currently active on the web that offer top tier commissions without having a giant sales team sponsored down line. In other words Top Tier in today’s vernacular means that there is a substantial commission paid just on the sale of the product alone without any overrides or bonuses created by a massive down line sales team.
Whether or not a company can be considered top tier is a function of their compensation plan. In most multilevel marketing companies, profit on the sale of an item is divvied out along a long line of sponsorship sometimes 10 or 15 deep, plus bonuses and overrides to the really high ups. Of course the more you divide the dollars the smaller the pieces become.
In today’s top tier plans, the profit on a sale will only be divided once or twice, giving the lions share to the affiliate who actually made the sale and a hefty chunk to their sponsor or trainer. The obvious advantage of a top tier program is that you don’t need an army to make a good income. The disadvantage is that the price of entry is often 10 times or more that of a typical multilevel marketing plan; However, this also has the effect of eliminating all but the most serious prospects.
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Source by Rolan Dillion