Top Tier Affiliate Programs – Working Smarter Not Harder
Over the last year I’ve come to embrace the concept of top tier affiliate programs.
Don’t get me wrong, I love the concept of network marketing; however, I’ve also seen the challenges that leaders in MLM often face and the burnout that often comes with trying to keep a substantial check going. Over time attrition begins to take its toll on the leader’s organization. With the average network marketer only remaining active in their company for 2-3 months, a leader has to quickly scale up or the outflow will begin outpacing the inflow.
The solution for years has been to twofold:
- Create a culture that makes people feel that they are apart of something bigger
- Target other leaders who are capable of moving large numbers of people
While some leaders are able to get ahead of the attrition outflow, many inevitably see their checks begin eroding and so they start looking for the next deal that they can move their people into. Over the last four years, I have watched as some leaders have moved their teams upwards of 8 or 9 times, simply trying to protect their earning power.
This is the place where a top tier affiliate program not only becomes attractive, but makes good business sense.
What Are Top Tier Affiliate Programs?
At its core, a top tier affiliate program is a pure direct sales model that retails high ticket items. These may include such things as wealth coaching, advanced marketing training and travel. The name top tier is based on the fact that a typical sale in this type of arrangement may range anywhere from $1,000 all the way to $50,000 and all points in between.
While most top tier programs only pay on direct sales, there are some programs that will pay on a 2nd level as well. This simply means that the sponsor of the affiliate making the sale will also receive override compensation from the sale of that particular product or service. This type of arrangement is very appealing to many of the leaders coming from a traditional MLM model, because it contains a leverage element to it.
As one might guess based upon the higher ticket price of items sold, the payouts are much larger on a typical top tier affiliate program. The commission payout on an individual sale may run anywhere from $500 all the way to $10,000 or more. With these types of commissions, it is easy for the numbers to quickly add up as sales are made.
MLM or Top Tier Affiliate Programs – Which Is Better?
I find that many people are questioning whether MLM or top tier affiliate is the better way to go. While there is much discussion on this topic, let me give you some of the pros and cons that you will want to consider.
MLM – Pros
- Typically low cost point of entry
- Residual income (monthly autoship/subscription)
- Leveraged income through multiple levels
MLM – Cons
- High attrition rates
- Requires high volume organizational growth
- Have to constantly motivate to maintain downline
Top Tier – Pros
- High commission payouts
- No need to build and maintain large organizations
- Build larger incomes with less people
- Attracts a higher level prospect
Top Tier – Cons
- Generally no monthly residuals
- Pay is typically 1 to 2 levels deep
- Limited product selection
The answer to the question of which is better is really a matter of perspective.
Most marketers realize that it takes the same amount of effort to generate a $100 sale as it does to generate a $10,000 sale. From a time invested standpoint, many would prefer to have a larger payout for their efforts.
On the other side of the equation is the network marketer who would prefer that sale to have the monthly residual income that arrives month after month.
Both are valid perspectives. I believe the real sweet spot lies somewhere in between the 2 ends of the spectrum.
How I Use Top Tier Affiliate Programs In My Business
As I evaluated my own business, I found myself working through the very things I described earlier.
I loved the MLM model, because it is a leveraged way to build passive residual income. The low entry point, made the business accessible to most anyone; however, at the same time, I was constantly fighting to keep people involved in the business purchasing products or services every month.
I also did the math. I knew that if i was making $25 per month on each purchase in my organization (that’s being generous), it would take 400 sales per month just to maintain a $10,000 per month income. At the same time, if I could raise that commission to $500 per sale, I only needed 20 sales per month to maintain that same income. At $1,000 per sale, I only needed 10 sales per month and at $3,000 per sale I only needed 3-4 sales per month to maintain that same level of income.
What I determined to be the best fit for my business was a combination of the two models.
Here are the 2 top tier programs that I’ve incorporated into my business.
- Empower Network – While most people initially think of Empower Network as a mobile blogging platform, it is actually much more than that. Empower is a true hybrid of the two business models I mentioned above. Not only is there a potential residual commission of $125 per month for the technology platform and mindset coaching, but Empower also offers a complete line of advanced marketing courses that teach such things as how to scale out your business, how to create viral sustainability and the advanced technical skills to make a 6 or 7 figure per year income online. These advanced courses carry price points of $500, $1,000 and $3,500. These advanced products pay $500, $1,000 and $3,000 respectively. I have found that this platform provides great residual income, but it also provides exceptional top end earning potential as well.
- Prosperity Alliance – Prosperity Alliance is the wealth and influence coaching products offered by my good friend and mentor Marshall Sylver. This program is a two-tier affiliate program that offers 4 courses and experiences with price points at $1995, $3995, $7995 and $12,995. Commission payouts on the first tier are $600, $1,000, $3,500 and $5,000 respectively. 2nd tier commissions are $400, $500, $1,500, and $3,000 respectively. I chose this program, because of Marshall Sylver’s skill in sales and upselling. In all of his courses that I have attended, approximately 50% of the people have made a purchase.
Over the last few years, I have spoken with many MLM leaders who like me were tired of eroding checks, endless 3 way calls and a never ending cycle of “pep rallys” just to keep their income stable or growing, even though they loved their company and products. For many of us we have found the answer in adding either a separate top tier program like Prosperity Alliance to our business or utilizing a hybrid program like Empower Network.
If you’re ready to earn bigger commissions from the work you are doing then top tier affiliate programs may be your solution.
CLICK HERE to learn more about Empower Network.
CLICK HERE to learn more about Prosperity Alliance.
***Carl Willis is an affiliate of both Empower Network and Prosperity Alliance and may receive compensation from actions taken from this website.