Find The Best MLM Compensation Plan for YOU
One-size-fits-all almost never really fits everyone. The best MLM compensation plan for YOU is not necessarily going to be the one that my company uses... or the one used by the company that your best friend has been encouraging you to join... and maybe not even the one used by the company whose products you love and have been buying for years. There is not one best MLM compensation plan... any more than there exists only one best MLM company. Every entrepreneur, distributor, and business owner has a different set of life circumstances and personality that decide what factors work and which ones don't. There are essentially two components of any network marketing compensation plan: - Product Sales
- Recruitment of New Distributors
Commissions and bonuses (compensation) are earned by selling the network marketing product and by recruiting (sponsoring) additional MLM distributors for the company. These are "positioned" "under" you in the structure of your compensation plan, and are called your "MLM downline”.
The percent commission on the products that you sell is one of the details of the compensation plan that determines your earnings. This is different for every company. It usually also varies within any given company for different categories of sales. For instance, the sales that you make personally usually earn you more than the sales that are made by distributors in various levels of your downline.
Another variation is different levels of commission for the various products that a company sells, or other variations that can be unique to each particular company’s MLM compensation plan. Some plans pay a bonus after distributors in certain positions in your downline reach a certain sales volume. Good compensation plans are designed so that distributors earn the most when they spend time on both selling and recruiting. This is good for both the distributor AND the company, for legal reasons. Network marketers are big on recruiting a downline, eager to set themselves up for future residual income and less time spent on working their business. What is residual income ? What are passive income opportunities ? Both can help network marketers to go from debt to financial freedom, but way too many people start multi level marketing businesses dreamy-eyed about very-little-work-and-great-money.
A downline exponentially builds your business upon the success of those you train to work under you... your downline.
But unless products are sold by distributors to customers, what may seem to a distributor to be the best MLM compensation plan will be found to be illegal by regulatory agencies... like ponzi schemes or a pyramid scheme. Very detailed explanations of all of the types of compensation plans are available. But trying to understand it all can be really mind-blowing without a real-life example. And even then, until you start to work a business and get familiar with the products and your customers' opinions of them, you can't really "know" how every detail will actually work out in your earnings for any particular multi level marketing plan.
So what can you do? You really only need to understand and consider some simple differences between each basic type of plan to be able to choose the best MLM compensation plan for you. Most importantly, decide how easy (or not) it is to start getting paid. Find out what you need to do in order to "qualify" for various earnings. This is the first step that usually makes or breaks most distributors. You need to be able to recruit that minimum number of other people into your business to even begin to earn a percentage of sales. Both of my current companies make "qualifying" pretty easy, requiring only 2 or 3 distributors to be recruited. And since one of my companies markets an affordable product that is pretty easy to sell, it's not too hard to recruit, either. Visit some of my other pages to learn more about me, Karen Harris, and my network marketing business opportunity.
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