Compensation Plans

The Binary and Matrix Plans – how to analyse them

by Charlie on May 12, 2010

Most people struggle to grasp MLM compensation plans. When trying to analyse how much you will earn, trim away the extras – think residual:

“How many active people buying product on a monthly basis do I need to earn 10K per month of walk away income?”

Front end money is a great but that is not residual. So forget about fast start and recruiting bonuses when analysing the compensation plan for retirement income purposes. Just look at the residual.

If your check stops when recruiting stops, you are in the wrong business.   [click to continue…]

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The Best MLM Compensation Plans

by Charlie on February 5, 2010

Most people start in the Network Marketing industry on a part time basis. The majority never go full time. When looking for the best MLM compensation plan, you must take this into account. If these distributors do not have a reasonable chance of success, your attrition rate will be unacceptably high. Even as a leader, you may then drop out yourself if you cannot sustain sufficient active downlines to create residual income.

Business Models drive the behaviour in the field so a different approach and a different kind of person is suited to each type of pay plan – binary, stair-step breakaway, unilevel etc. But within those – whichever you choose – there are two essential features which must be considered. [click to continue…]

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