Which are Better - Low Cost Programs or High Cost Programs?
This is a discussion on low cost versus high cost home business programs, and which are more profitable.
This discussion is related to network marketing and direct sales programs (1 UP and 2 UP Pay Plans).
Many people believe low cost programs are better. They would tell you, and logic would tell you, that low cost programs are more profitable over time. The logic is because a program is low cost it is affordable by the most people and many will join.
This may be true, but the problem with low cost programs is the word in the paragraph above - “time”. Low cost programs are also low paying programs per member. So, it may take several months if not years before you would make a nice income. Most people will become discouraged and drop out before they make a decent amount of money.
Another problem with low cost programs is the sheer volume of low cost network marketing programs available. The number of low cost programs dilutes the candidate pool and is so competitive that it’s not as easy as it used to be to build low cost, low paying programs.
Some people believe that higher cost network marketing programs are more profitable, because there is more money to pay out, which leads to more money sooner.
The problem with higher cost network marketing programs is that most people will not pay more than $100 every month for long. If they don’t make their money back in just a few months that $100 plus a month seems like too much money to pay for little return.
The highest cost programs I have seen are usually a one up or two up program. That means there is a higher one time fee and the first one or two sales that you make go to the person who referred you. The good thing about this type of pay plan is that the pay out is very good and it generally does not take long to make your money back. Furthermore, there are no lingering monthly fees.
Of course the downside to this type of program is that because of the cost a fewer number of people will join. Or, will they? I have found that it takes little more work to sign someone up for the highest cost programs than the low cost programs.
Now, I like the high paying programs because I would rather spend my time earning $1000 as opposed to earning $10-$20. Furthermore, people joining a high cost program are generally more serious about the business and are more likely to work the business.
That doesn’t mean I’m not involved in low cost programs, because I am. There are some people who honestly can’t afford a high cost / high paying program. Most people can afford high cost / high paying programs, but they just can’t see the benefit of investing a higher amount of money into a program that can return that money many times over in a short period of time. I need a low cost program for these people.
I would like to get your feedback on this topic. Simply click on “Comments” at the bottom of this post, scroll down to the “Leave a Reply” box and Submit your comment.
P.S. If you haven’t tried a high paying program, you should at least check one out. Of course, I have a great one. We have a sales center that you send your prospects to. The sales center does all the explaining, all the follow up and the closing. And, you earn $1000 on every close. Your ONLY job is to get people to phone the sales center that is manned by live human beings.
P.P.S. Everyone who joins us in June will receive a $150 rebate on any advertising they choose. Just email, or mail, me your receipt and I’ll send you $150.
Mike