Networking

 What is the Best MLM Payplan?

A popular compensation plan is called the Uni-level compensation plan. It is popular because it is the simplest to understand. You may have unlimited amount of distributors on your 1st level and probably 5 to 6 levels below you, with a percentage of sales paid to you on each level.

A variant of the unilevel plan is the matrix pay plan. The only difference between a unilevel and a matrix pay plan is that you are limited to how mant people you may have on your first level. You may only be allowed to place 4 people on your 1st wireless security camera all other people you signup will be placed in the closest available position of your downline. This type of pay plan promotes teamwork......the very essence of what Multi Level Marketing should be.

A popular MLM compensation of late is the 1up or 2up payplan. The 1st sales of any distributor in this plan is passed up to the next qualified rep. You begin to make this commission when you qualify by making your 1st 1or 2 sales. This allows you to make commissions since the payment is not spread out over multiple levels and you can in fact be paid to unlimited levels in depth. You can make a quick huge income with this plan. A drawback is you must continue to make sales, there is generally no monthly requirement to order product

A Binary is another type of compensation plan. Generally, all a person has to do is build 2 legs or in otherwords 2 lines of distributors. This sounds great on the surface, but the balancing act one must perform between the 2 legs is difficult. Often you only get paid let's say 6 paid distributors on 1 leg and 3 A recent innovation is the paid distributors in another leg. Most people can get 1 leg going with a strong upline, but find it difficult to get the 2nd leg started.

The author strongly despises one type of MLM compensation plan. That is the Straightline Powerline. It seems so enticing. You participate; and everyone who signs up after goes under you. The only problem is that in order to get paid, you must meet some outrageous requirements and you make very little money.

Some time ago, the largest MLM companies used the stairstep breakaway plan. This type of MLM compensation plan produced some of the largest incomes in the MLM Industry. Checks of 2-300,000 dollars monthly and larger were being paid out. Somehow this type of MLM compensation plan was relegated to the scrap heap. This is my favorite type of MLM compensation because it simply pays the most over time. make an escalating percentage on your group and personal volume sales, sometimes as high as 40%; and you make breakaway money on those who have gotten to the highest point in the payplan based on their group volumes thru more descending levels.

I know sometimes it is difficult to decipher different MLM compensation plans. Use the information here as a primer to make your very important decision.