MLM Compensation Plans - 4 Elements Indicating That You Have Found A Good One
As the number of network marketing or MLM companies multiply so is the number of MLM compensation plans.
It is however important that you do your home work well before jumping on a particular one.
I have described below 4 elements that a good MLM compensation plan should have.
1.
Reward the masses (part-timers) 95% of network marketers are part-timers.
This is a huge chunk of the pie (the work force).
The plan should be such that people can make a decent income working a few hours per week.
Most plans reward the company and the top guns at the expense of the part-timers.
Make sure it's not at the expense of those "at the bottom".
Everyone should benefit.
2.
The Numbers It is important to take the Comp.
Plan Test or the $10K test.
What is this test? In simple terms it determines how many people you need on your team to earn a recurring income check of say $10K per month.
There are companies out there that require as many as 2500 to 3500 people.
There are some also that will require you to have about 400 people in your down line.
This should be a critical component of a compensation plan.
3.
Break even bonus You must be in a position to break even quickly when you join a company.
The bottom line is that you need to make some income from the beginning.
If not so frustrations will set in.
So the question is how many customers or down-line do you need to break even? Some companies require 4-6 customers; others require 100's and could take years to get to this point.
4.
Less emphasis on Recruiting/Sponsoring If a compensation plan stresses on recruiting, it is time to look for other opportunities.
The purpose of any business is to move product from the company to the end-consumer.
Therefore you must regard with deep suspicion any group that pushes recruitment with very little emphasis on the product or service it is selling.
It could be an outright scam.
For a MLM compensation plan to meet your financial goals always look for the ones that reward the part-timers, require less number of people in your down line and to break even; and does not place emphasis on recruiting/sponsoring.
It is however important that you do your home work well before jumping on a particular one.
I have described below 4 elements that a good MLM compensation plan should have.
1.
Reward the masses (part-timers) 95% of network marketers are part-timers.
This is a huge chunk of the pie (the work force).
The plan should be such that people can make a decent income working a few hours per week.
Most plans reward the company and the top guns at the expense of the part-timers.
Make sure it's not at the expense of those "at the bottom".
Everyone should benefit.
2.
The Numbers It is important to take the Comp.
Plan Test or the $10K test.
What is this test? In simple terms it determines how many people you need on your team to earn a recurring income check of say $10K per month.
There are companies out there that require as many as 2500 to 3500 people.
There are some also that will require you to have about 400 people in your down line.
This should be a critical component of a compensation plan.
3.
Break even bonus You must be in a position to break even quickly when you join a company.
The bottom line is that you need to make some income from the beginning.
If not so frustrations will set in.
So the question is how many customers or down-line do you need to break even? Some companies require 4-6 customers; others require 100's and could take years to get to this point.
4.
Less emphasis on Recruiting/Sponsoring If a compensation plan stresses on recruiting, it is time to look for other opportunities.
The purpose of any business is to move product from the company to the end-consumer.
Therefore you must regard with deep suspicion any group that pushes recruitment with very little emphasis on the product or service it is selling.
It could be an outright scam.
For a MLM compensation plan to meet your financial goals always look for the ones that reward the part-timers, require less number of people in your down line and to break even; and does not place emphasis on recruiting/sponsoring.
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