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…]
The stairstep breakaway pay plan is the oldest MLM compensation plan. Having stood the test of time, it is the most commonly used compensation plan. The oldest and largest MLM companies, Amway, Herbalife, Mary Kay, Neways, Nu Skin still use this type of pay plan. It is also the most complex form of compensation plan and the most difficult to explain to new prospects.
Before the days of computerised databases and online ordering, distributors did not deal directly with their MLM company. They actually bought products at wholesale price from their sponsoring upline, who bought from his sponsoring upline and so forth until the first “direct” distributor who dealt directly with the company.
In fact, some companies still use “direct” to distinguish their top producing distributors from others, with designations such as Gold Direct, Platinum Direct, Emerald Direct, Diamond Direct etc. [click to continue…]
In choosing the right MLM company to build your long term executive level residual income you must look closely at the company management, the companies timing and its products. Another very important aspect that is crucial to your long term success is the company’s compensation plan. In fact, it is imperative that you understand your compensation plan.
People often ask “What is the best compensation plan?”
The best compensation plan allows average people to get above average results. The best compensation plan requires the least amount of people to make the most amount of money. It should allow the average person to become profitable in the shortest amount of time. It has to be a fair plan, otherwise the business is not sustainable. [click to continue…]
