Most people, when searching for the Best MLM Opportunities, look at products and company but fail to examine the MLM compensation Plans. Bottom line is, the compensation plan will always drive the behavior in the field. If that behavior is recruit til you drop, you may want to look elsewhere. If the Compensation Plan drives the behavior of retailing products, then you may be onto something.
Below is a list of some of the more common MLM compensation Plans with a brief description of each.
The Binary Plan:
Binary MLM compensation Plans are any plan that has only two legs. In a binary system, your two front line positions are Gold because your two legs have to remain balanced. If one is longer than the other, you will only get paid down through the lowest level of the short leg. Also, most bonuses are only available on balanced legs. This leaves you juggling to try and be sure to maintain balance making your focus primarily on recruiting. The other issue, which is related to the first, is that someone in your upline could place a distributor on YOUR front line. Sounds good right? NO. Remember, you want to reserve these spots for serious builders. Otherwise, you will be stuck building under one of them. Then, as you recruit and place new members, they will always be on someone's front line. As you can see, fairness is not to be found in these MLM Compensation Plans.
The Auzzie 2-up Plan:
Auzzie 2-up's are the worst types of MLM compensation Plans. They are usually tied to a big ticket item that is a one time sale, referred to as "front end loading". As the name implies, your first two sales roll up to your sponsor. Don't worry though, you get to keep the commissions from the next two. When most people in MLM only ever sponsor 2.5 people, how is this supposed to work? Sure, you will get the first two sales from the 2 people you got into the deal, but where is the residual income? The Best MLM Opportunities will never use such a plan.
The Stair Step Break Away Plan:
These MLM compensation Plans have unlimited width and depth BUT, once a member of your team reaches a volume of sales, that person breaks away from you. They are no longer in your downline. You just lost a huge chunk of your business leaving you to go build a new leg. You can bet there isn't much coaching going on in companies with these types Plans.Some of the biggest and Best MLM Opportunities have used these types of MLM compensation Plans, but they nearly always fail eventually.
The Matrix Plan:
Matrix style MLM compensation Plans have a fixed width and fixed depth. For example, a 3X5 matrix will have 3 front line spots and pay down through 5 levels. While most of these programs work off repeated sales, you can generate a residual income. The only problem is, a fixed matrix means a fixed maximum potential income. Some programs have gotten around this by introducing what is known as a "Cycler". Basically, this is a small matrix, around 2X2, and as you fill one it "Cycles" and you start over. These cycling compensation Plans produce little to no residual and are totally dependent on recruiting people, thus corrupting the matrix style plan for the gain of the company.
The Uni-level Plan:
Uni-level MLM compensation Plans are, in my opinion, the best type of plan. It offers unlimited width and depth without any restrictions. You can have as many legs as you want and build as deep as you want without fear of losing part of your business. When it comes to depth, there has to be some cut off point. There is not be enough profit from a product sale to pay out through 200 levels. However, in most uni-level MLM Compensation Plans, your percentages and bonuses are calculated based on total volume in your organization. In this manner, that person 200 levels deep is still very much important to you. This type of plan promotes coaching and training because it is a true win/win situation for all. If you do coaching with that person who is 200 levels deep, you can help them increase their business and your bonus checks will reflect that.Most of the very best MLM opportunities of all time have used a uni-level compensation plan.
The bottom line is, the very best compensation plan is the one that pays the part time distributor. Almost everyone starts out part time. If you cannot make any money as a part timer, you can never hope to become full time. When searching for the absolute Best MLM Opportunities, first look at how many people you need to break even, to make $100 a month, $1,000 and then $10,000. There are as many different variations of MLM Compensation Plans as there are MLM companies. Choose Wisely.
If you are ready to take your network marketing business to the next level, I strongly suggest reading the eBook "Success in 10 Steps".
After reading the eBook, "Success in 10 Steps", contact me and I will share with you an audio training on how to analyze an MLM Comp Plan. Once you have read the eBook, and listened to this audio training, email me at abdeelmarketing@gmail.com and I will show you how you can get the best MLM training available today absolutely free.
If you are ready to take your network marketing business to the next level, I strongly suggest reading the eBook "Success in 10 Steps".
