If you haven’t read Part I yet, “Breakage” is basically money that is kept by an MLM company that could have been paid to its hard working distributors. In network marketing, there’s front end breakage and there’s back end breakage (or compensation plan breakage).
Front end breakage (as discussed in Part I) is designed to take more money from distributors as they are purchasing the product from the company, before they are compensated for a particular business period, whether that be a week, or a month.
Back end breakage is often taken out of the compensation plan. [click to continue…]
“Breakage” is money that’s kept by the MLM company that otherwise could have been given out to distributors in the field. A greedy company would try to create as much breakage in the compensation plan as possible.
Why should companies look after distributors and give out as much money as possible? Because MLM companies are nothing without their distributors. Bare that in mind as you read this…
In the world of network marketing, there’s front end breakage and there’s back end breakage or what’s commonly referred to as compensation plan breakage.
For this article, let’s take a look at front end breakage. Front end breakage is actually built into the business model and here’s how it works… [click to continue…]
