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Network
marketing - MLM compensation plans
Compensation plans in network
marketing / MLM vary from one company to the next. They are at best
difficult to understand for both you and the person introducing them
to you.
It is up to you to ask questions
when evaluating any company's pay plan. Some are front end loaded or
they maybe back end loaded.
There are some plans out there
that payout more then 100% fortunately these companies don’t last long
but do end up hurting individuals and give the network marketing
industry as a whole a bad name.
s a general rule of thumb anytime you
see a payout of more then 60% be suspect. It generally indicates that:
• The products are grossly overpriced, unless it is a unique product
or a exclusive patented product.
• Qualification/Quotas most well established companies will have some
volume or monthly quota that each individual representative must
maintain.
• Breakage/Break away several of the most popular programs out there
use this one. Imagine after all your hard work you miss your quota for
the month only to have all your hard work building an organization
disappear.
Most compensation plans fall into
binary, breakaway, matrix, stair-step or uni-level plan but there are
other plans out there as well. |
