When you think of top tier, it is of the highest level of quality. So when you find yourself getting pitched a top tier business opportunity, you’re considering the highest quality business opportunity ever.
I know I sound pretty cynical when I say why people avoid them. I get that many people love the fact that they can make thousands of dollars from one sale. Top tier business opportunities have components that may feel kind of shady. So, before you leave, I want to explain why people avoid these business opportunities.
Money Made Through Business
We all know you have to sell a service or product to someone to make money. That is how businesses make money.
When we do business with a company, it should be a win-win situation.
If you are a customer, you are purchasing a product or service that you value. If you are a business owner, products, or services sold should be of value to your customer.
What Is A Top Tier Business Opportunity
A top tier business opportunity sell digital online training, coaching, marketing systems, and training retreats at different price tags and levels.
They start off low, but each training level consists of a higher price tag.
Usually, the starting level ranges around $50 to $500 depending on which tier opportunity you come across.
The highest level can run you in the $20,000 range, and those tier levels usually have some kind of on-site training retreat.
The whole agenda for a tier business opportunity is to earn high commissions.
How Does A Tier Business System Work?
The way their systems works varies for each opportunity.
The core foundation though, is based on getting started at the lowest level then purchasing a higher level of training that pays a higher commission.
If people join at the starting level, they are more than likely going to start with a monthly fee.
They encourage you to purchase either their affiliate marketing program or some kind of digital licensing rights that allows you to make other commissions.
Each tier sold, you are encouraged to purchase that tier level and sell the same or lower level to make commissions.
If you acquire people and they decide to purchase a higher tier level than you, the commissions pass you up and go to your upline.
These systems encourage people to purchase all tier levels, so there are no commission pass ups.
Some tier systems also have a Multi-level comp plan where you can make money from the people you recruit into the system.
The multi-level component structure tends to go down two levels others can go down to even three or four levels. It just depends on how their comp plan system is put together by the owner(s) or creator(s).
In other words, people purchase training materials and digital tools; then, they are trained to sell the same system they bought.
As you can see, it’s an upsell extravaganza. Now let’s get into why people avoid them.
Presell Pages Can Be Misleading
When people see an ad that indicates they can make tens of thousands of dollars and the starting price is around $50 and $47 a month with a 30-day money-back guarantee, it’s appealing.
According to these ads, people are getting training courses and coaching that is supposed to help people achieve a quick payment in no time.
They will see headlines like make $10,000 in a week.
What people are not getting told is a week from what?
What they don’t show you are income disclosures and what was the real investment to make $10,000.
Someone could have made sales, but their investments haven’t turned into profits.
Coaching And Upsells
Coaching are usually done by telephone. People tend to express that their coaches upsell them a higher tier level.
People feel that the coaches are salesmen. Now that’s not a bad thing if they are closing the sale for you.
On the other hand, if you are getting upsold a tier level, they are closing a deal for someone else.
As you can see, people are in a system.
They are being sold higher training levels because these coaches mention it is supposed to help make money.
Affiliate Marketing vs. Tier Affiliates Don’t Get Them Confused
Affiliate Marketing allows people to make money in many niches. Let says someone is into headphones and want to start making money in that industry.
They can certainly do that by becoming an affiliate for companies that sell headsets. The Affiliate Marketer can recommend to people from the highest quality brands to the lowest.
They can express each feature that these headsets offer and accessories. If someone purchases a recommendation, the Affiliate Marketer makes a commission.
The Affiliate Marketer is never asked to pay a fee at any time for any affiliate program.
Tier business opportunities tend to charge a monthly fee to become an affiliate.
They also require that you join another out of pocket expense training course to be an affiliate for their system.
Usually, these Affiliate Marketing opportunities is a way to make commissions on every level and earn multi-level commissions when you acquire sales through their affiliate program.
As you can see, it’s not an affiliate marketing program, but an MLM opportunity.
So they mislead an affiliate marketing opportunity to people when it is really a multi-level opportunity.
Marketing Is Another Out Of Pocket Expense
Of course, owners in these tiers systems are in it to make money as well. Like I said earlier, people start businesses to make money.
People who invest in these high ticket tier programs want their money back as well. So, of course, there is training for marketing materials to help acquire sales such as,
- Paid Advertising
- Funnel system
- Presell pages
- SEO strategies
- Email marketing
After spending thousands of dollars on getting access to their training now, you’re looking at other out of pocket expenses to make a return on the investment.
Paid advertising can cost in the thousands if you’re not careful. Also an autoresponder and funnel builder systems cost money too.
Prices vary depending on where it is decided to run ad campaigns and that also applies for the autoresponder and funnel builder system.
Do People Make Money With Tier Opportunities
Oh yes, people do make money. The investments are high, and it does take time if you are skilled enough to get back your money.
It’s a risky way, and the training and tools sold can be found through other inexpensive services.
Logically, there are not many people who are going to part ways with twenty grand for digital training.
If someone is lucky enough to obtain a $20,000 sale, know that the person had to have paid for that tier level as well.
Not to mention all the other marketing monthly fees they paid to obtain that sale.
And on top of that, know that they are not making the full $20,000 commission, they are probably getting 30 or 50 percent commissions.
Meaning it’s going to take time to make a return on that investment if ever.
The Utmost Guarantee
Most people who join tier business opportunities are new to the whole online making money arena.
The training is going to be overwhelming because new people are learning a new skill.
They are going to say the training is worth it because they are unaware of other training platforms that are cost-effective.
The experienced marketer who sells these systems, have their digital training.
The experienced marketer sells their training to newbies that leads them to be a part of their team in a tier system.
So people are giving it their best shot, not realizing it’s not as easy as it seems.
A lot of the training materials is about the mindset.
It can make people feel like they are not in the right mindset to make money. It can also make a person think that tens of thousands of dollar investments are needed to make money online.
What people should know, and it is a known fact that there is no guarantee you will make money in any business opportunity period.
If you look at MOBE’s tier opportunity their income dislcosure shows that there isn’t a lot of people making the kind of money that is claimed.
Who Are The People Who Avoid Tier Business Opportunity
The thing about being apart of these types of systems is that you don’t really own your own business. You are pretty much buying into a system.
A system that does have training materials to help you obtain sales, but the whole agenda is to recruit people into the system.
So everyone is making money off of each other base upon the multi-level aspect and the tier system.
The people who avoid these systems can vary.
- People who think it is a pyramid scheme
- People who feel tier systems are too expensive
- People who think training is overpriced and not proven
- People who tried them and now avoid them
- People who want to own their own online business
- People who are interested in build an e-commerce business
- People who found out the FTC took action against some tier opportunities
Earlier, I said why people start businesses, and some people feel that a tier business opportunity isn’t a win-win situation.
All In All
It doesn’t hurt to research stuff. When investments require a high price tag that is in the tens of thousands of dollars for digital training, why would it bother to investigate first?
It’s not about being a tire kicker; it’s about making suitable investments.
Tier businesses ask for a lot of money to part with.
There is no guarantee that you will make money.
Sometimes that money-back guarantee has stipulations, so it is best if you’re going to invest is to consult with a lawyer first.
If you have any questions or comments about tier business opportunity and why people avoid them, please feel free to let me know below, thanks!