There are four basic types of compensation plans in Network Marketing. The following is a quick and simple explanation of each (assuming you have a basic understanding of MLM):
Matrix: A fixed number of people in width and depth paying a percentage based on each spot.
Unilevel: Unlimited width with a fixed number of levels. Paying out a certain % by level.
Binary: Two people in width and unlimited depth. Pays on volume cycles when a fixed amount of volume moves through each of the sides.
Stairstep Breakaway: Unlimited width with a volume based percentage payout that breaks away once a person hits a particular rank.
Now for the reality….
None of these plans work. None of these plans will make you money.
Only you can make you money in Network Marketing. The compensation plan is a lot less important than experts and pitch artists would lead you to believe.
The only thing that will make you money in Network Marketing is your work selling products and sponoring people. Find a quality product at a fair price and get busy marketing.
Evaluating MLM Compensation Plans
September 28, 2005 by Ty | 1 Comment
In Network Marketing Compensation, Network Marketing Tips
MLM Business Opportunities Blog | Evaluating MLM Compensation Plans on September 28th, 2005 at 7:15 am
[...] MLM BLog: There are four basic types of compensation plans in Network Marketing. The following is a quick and simple explanation of each (assuming you have a basic understanding of MLM): [...]