For a network marketing company to be successful it needs to pay the part time distributor.
If it is difficult to make enough money to cover their own monthly product order, people will get discouraged.
In some comp plans, the top 3% distributors are earning 95% of the commissions. It can be difficult to break into the higher percentage category. If someone tells you about so-n-so who is making a kagillion dollars, what that really means is, nobody else is.
We will look much deeper into the different comp plans another time. For now, it’s a simple matter of math. Start with a good round number, say $10,000, and figure out how many people you will need in your organization to earn that each month. Disregard any bonuses because those are not residual.
Once you come up with this number, ask yourself, “How much money could a part time person make doing this?”
For more info on the particulars of compensation plans, here is an MP3 file of a training call on this subject.