Save this article
Use this article for free on your own website
Republish this article for free on your own website or blog. Or search or browse for more articles that your audience will appreciate. Huge choice available. Ideal for finding quality, free content. Read our publishers guide.
Is There A Better MLM Compensation Plan?
Before you begin any MLM Opportunity, it is important to know the pay structure and how it will affect your future income. There are so many MLM Compensation plans availble, that it is impossible to cover them all as well as their nuances. Only the most popular will be dicusssed in this article.
Before you begin any MLM Opportunity, it is important to know the pay structure and how it will affect your future income. There are so many MLM Compensation plans availble, that it is impossible to cover them all as well as their nuances. Only the most popular will be dicusssed in this article.
A popular compensation plan is called the Uni-level compensation plan. It is popular because it is the simplest to understand. You may have unlimited amount of distributors on your 1st level and probably 5 to 6 levels below you, with a percentage of sales paid to you on each level.
Teamwork is the key to any successful MLM venture. The very nature of the MLM business model demands it. The matrix compensation plan accomplishes this very important componenet. It limits the amount of people you can have on your 1st level. This forces everyone to help their downline.
More and More recently the 1up and 2up MLM compensation has been used to create quick and large profits. A distributor can make ALL the commision on the product sold. There is no commission paid on levels which allows this. Once a person has qualified by making their 1st or 2nd sale and passing all that commission up to the next qualified person, they now make the whole commission for themselves on any subsequent personal sales and those unqualified beneath them. It is possible to be paid on infinite levels, however since there is no monthly requirement to order product, the system is reliant on bringingnew sales or distributors in.
A Binary is another type of compensation plan. Generally, all a person has to do is build 2 legs or in otherwords 2 lines of distributors. This sounds great on the surface, but the balancing act one must perform between the 2 legs is difficult. Often you only get paid with let’s say 6 paid distributors on 1 leg and 3 A recent innovation is the paid distributors in another leg. Most people can get 1 leg going with a strong upline, but find it difficult to get the 2nd leg started.
I only mention Straightline Powerlines because this MLM compensation plan is gaining in popularity. It seems so attractive.......just one straight line down, each distributor on top of another. Wow......what teamwork! The problem is that the requirements to get paid are so outrageous, you make very little money. The author STRONGLY discourages you from participating in one.
A long time ago......in a different era of MLM compensation plans is the stairstep breakaway plan. Just because something is old doen’t mean it isn’t profitable. Some of the largest checks in the industry have been made using this plan. Checks of 2-300,000 dollars monthly and larger are not uncommon. You get paid a progressive percentage based on your group and personal volume. When someone attains the same level as you, they breakaway and you make a percentage of their group volume thru multiple levels. Call me a dinosaur, but I know real money when I see it. I wish this type of MLM compensation plan was more prevalent than it is. In my opinion, this is the Best MLM compensation plan.
I realize this is a simplistic explanation of MLM Compensation plans. Many plans have variations and other added bonuses to make their MLM company plan special. Choose the one that is best for your circumstances.