MLM Compensation Plans - Can You Draw a Circle?

By Brian Jones


Are you considering getting into the Multi Level Network Marketing business? Many are because it's a good chance to have a home based business and make a ton of money. But consumer beware: not all MLM compensation plans are created the same. Here are a few things to consider.

Let's assume you have recently done some homework about the company you want to join, and they look solid. You looked around online and found both positives and negatives regarding the company. It appeared that all of the bad reviews came from discontented distributors. But hey, the man in the fancy auto said that's due to the fact they failed to work conscientiously enough to build their team. You have to work at any kind of job to be a hit don't you? That won't be a difficulty, you know lots of folks.

But did you ever get a straight answer about the compensation plan the company has? Did you even ask? If you did, are you still scratching your head and thinking you have to be dumb not to be able to understand what he was talking about?

Here's the thing. Most MLM compensation plans are not tough to figure out if you go over it a few times and basically pretend, on paper, you are building a business. In reality this is often a good exercise to do so that you can outline a feasible action plan and 1 or 2 achievement goals.

Forget all the fancy jargon and language. Do not be too concerned about fully understanding the biggest difference between a matrix, binary, unilevel or australian one up structure. It doesn't matter really. What matters is, are there folks making the kind of money you need to make within this program? If so, then know that you can also make that sort of money if you get in, get busy, and build a business.

One feature to search for is if the company pays any sort of sign up bonus. For instance, it may cost $150 to join and the company may pay out a $20 sign up bonus. This is good, although not so good if you compare it with a corporation that costs the same to join but pays out a whole $50 per sign up.

The reason this is crucial to consider is perhaps because you and everyone on your team will finally run straight out of folk you know to present your product, service, or business opportunity to... So you will need to leap into the superb arena of selling. And there's a cost involved in selling. So any sign up bonus monies earned can be used to form a good advertising budget to keep your business going in the long term.

But if you don't make any money signing folk up, how will you afford to market and sell your business? So commissions earned for personal production can make or break your business.

One more thing to consider when comparing mlm compensation plans is what occurs when you sponsor a big hitter - a person who get in, gets busy, and builds a very big business fast. Are you going to get paid reasonably for their efforts? Or, as in many binary programs, will you need to find a 2nd big hitter to balance the effort to be paid.

Bottom line: Select two or three firms you are considering and compare their mlm compensation plans side-by-side as if you're truly creating a business. Pencil out the number and determine which best matches the earnings levels you would like to achieve.




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