You may find this a little bit worrying. You may or may not believe it could happen to you. But it does happen… more often than you think. It’s already happened with two major companies in 2010.
Some “network marketing” company managers are so stupid, that they don’t even know what their primary asset is. With their massive greed and over inflated egos, they let the distributors do all the hard work, then they pull the rug out from underneath.
Imagine building a network marketing downline up to the point where you’re earning $46,000 per month, then in the first days of the New Year, you get this letter in the mail… [click to continue…]
Recently I received an email from a visitor to my blog. He asked me about my opinion on his company, especially its compensation plan. I sent him some training material provided by Mentoring For Free that allowed him to do his own assessments of his company.
Here is part of his letter to me after he had gone through the training materials and saw for himself what he was in for…
Hi Wayne,
Thank you so much for your assistance. What an eye opener! Here I am wondering if the company has a good compensation plan when I should have been more concerned with how the company could discard me. Although I believe in the product, and the need for the product, I no longer believe in the company. Especially with clause X on page 2 of their “Terms and Conditions” policy, that’s about as straight forward and simple an “out clause” as you can get.
The information you are providing should be mandatory for anyone considering investing their time and money into any MLM offering. Hopefully as your word grows it will become increasingly difficult for crappy companies to con people into joining them. The public (myself definitely included) are way to trusting, or (like me) looking at the wrong thing. As you covered with your first recorded call, if the foundation is sand – my house will always be in trouble.
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iLearningGlobal is the second major MLM company to terminate it’s pay plan in 2010, and therefore all of its distributors. It follows XELR8′s painful decision to go direct sales in February. It was announced on March 17 that iLG will cease distributing it’s products via MLM and go to a more traditional retail sales model.
This decision will be hugely detrimental to the many distributors who have put their belief, faith, trust and energy into the company for their future. It will be especially so for the top distributors who will bear the responsibility of emotions from their entire downline team. It’s also bad for the entire MLM industry as many will lose confidence in it as a vehicle.
iLearningGlobal began in early 2008 with Brian Tracy, a global leader in personal development, as one of its founders. It was in pre-launch for about year before it officially launched in March 2009. Come March 2010, the company has failed its hard working distributors. [click to continue…]
What does it mean when a company does away with its play plan? It’s an absolute kick in the guts to the hard working reps who built the company from the ground up. All that hard work inviting people, talking to them on the phone, meeting people in cafes, restaurants and homes, doing presentations, the “no shows”, follow ups and coaching calls all of a sudden means nothing – a complete waste!
That’s what happened to the distributors of XELR8, makers of the Bazi nutrition beverage. Their company, a publicly traded company, just did away with their compensation plan. The three top distributors who had all reached the 250K Diamond level literally lost their livelihood over night and now they have to rebuild it all over again.
On January 19 2010, the chairman of XELR8, sent a letter all distributors telling them they are getting rid of their Multi-Level Marketing pay plan by the end of February 2010. Replacing the MLM compensation plan is a direct sales model where distributors earn a commission only from the retail sales of the product. [click to continue…]
Have you ever been really bummed out by why some people are successful in your company and you’re not? Have you been annoyed by the fact that some newbie who joined just a few months ago has already reached his first pin level, while you haven’t even moved from zero after one year?
The worst thing you can do is to feel inadequate about it, because it’s not your fault. Over the last few posts, we’ve covered a lot about personality types and how to relate to each of them. In this article, I discuss how each personality performs in the various compensation plans.
Yep, that’s right, some personality types are just not “wired” to perform well in certain compensation plans. Here’s why… [click to continue…]
Right now there is so much hype on the internet about making money in travel. The travel deals are touting that it’s an $8 TRILLION per year industry – whether this is true, I don’t know, but I doubt it – if you just get the tiny-est slice of this pie, you’ll be rich.
The problem is, most of the travel deals are not selling travel – they are just pretending to be. There is nothing wrong with selling travel packages and getting paid a commission. If you can selling a luxury holiday package and save your customers 60% if they had have arranged that package themselves, then more power to ya. But that’s not where the travel deals are making their money.
There may be a few legitimate online travel deals using a multilevel marketing pay plan, but they are few and far between. They can’t make money selling travel. They just can’t, the profit margins are too low. The industry is too competitive. You can find many great, competitively priced travel deals just by asking Google. The travel MLM’s are making their money on selling memberships. Here’s how they work… [click to continue…]
When looking for a job, you’d look carefully at the job description to understand exactly what was expected of you, wouldn’t you? You would make sure that you have the capabilities to do the job and that you’d be comfortable doing it, am I correct?
After you’ve determined that you’re the right person for the job, you’d probably want to know how much you’d be paid to do what you do best. This gives you options. You can compare several similar roles with different companies and weigh up which one is the best deal before making an informed choice.
So why wouldn’t you use the same approach in choosing a compensation plan and company that would give you the best chance of success? [click to continue…]
An Australian two up, or Aussie 2-up is any programme where you pass up your first two sales and personally sponsored distributors to your upline. Hence the “two up” – I’m not sure where the “Australian” part comes in.
That means your first two personally sponsored distributors are now personally sponsored by your upline, putting them in direct competition with you, and giving your upline the leverage. You derive no benefit, it’s only after you have made your first two sales, you can begin to benefit from your own hard work.
Aussie 2-up programs are always information products or expensive travel packages that cost $1000, $5000, $10,000 even $25,000. They are always one-time sale items. There is no residual income because they are not consumable products. There is no monthly autoship, no repeat custom. [click to continue…]
A matrix plan is any pay plan that has a fixed width and a fixed depth. If you’re in a matrix plan you are limited by how many frontline distributors you can personally sponsor. While there’s no limit to how deep you can go, you are only paid down to a certain level.
Let’s take a look at a 3 x 5 forced matrix plan, that is a maximum of three frontline distributors, paying down five levels deep. On the zeroth level is you. On your frontline (you first level) you can have up to 3 distributors, the second level can have up to 9 distributors, on the third level 27, on the forth 81, and finally 243 on the fifth level. The end of your payline is level 5. [click to continue…]
The unilevel compensation plan is a common in modern day network marketing. By and large, a unilevel compensation plan is a linear, whereby your income is directly proportional to the number of people in your organisation.
By contrast to the stairstep breakaway plan, the unilevel plan is a very easy compensation plan to understand and explain. In companies with more complex compensation plans, you would start as a distributor and move up to Silver, Gold, Platinum, Ruby, Emerald, Diamond etc, etc. [click to continue…]
"I've been in MLM since 1972. I've written and published several MLM books that people have used to build a good income from home. I've read all the great books this industry has produced. And yet, I've never seen a book that has produced as many strong network marketing leaders as fast as 'Success In 10 Steps.' If you're serious about avoiding the pitfalls and creating a successful future in MLM. THIS is the book you need to read!" Tom "Big Al" Schreiter, MLM Trainer & Legend
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