How To Evaluate & Sort Out The Best MLM Compensation Plan, Most people hate their jobs and want to earn more money. Everybody knows that there is never enough money to go round to pay the bills. They would like to know how to earn some extra income to have some luxuries in life. There is an old saying “two paycheques are better than one”. Most people are exploring ways to to improve their incomes. What everybody ought to know is how to sort out the best compensation plans in home base business opportunities.

Compensation plans in network marketing vary from one company to the next. They are at best difficult to understand for both you and the person introducing them to you. It is up to you to ask questions when evaluating any company’s pay plan. Some are front end loaded or they maybe back end loaded, Matrix, Binary’s & many more different ones.

There are some plans out there that payout more then 100% fortunately these companies don’t last long but do end up hurting individuals and give the network marketing industry as a whole a bad name.

As a general rule of thumb anytime you see a payout of more then 60% be suspect. It generally indicates that:

1. The products are grossly overpriced, unless it is a unique product or a exclusive patented product. One essential point that is crucial to a succesful home base business is have a product that sells. Some good advice. If MLM products are too expensive they usually end up on places such as E.Bay.

2. Qualification/Quotas most well established companies will have some volume or monthly quota that each individual representative must maintain.

3. Breakage/Break away several of the most popular programs out there use this one. Imagine after all your hard work you miss your quota for the month only to have all your hard work building an organization disappear.

Most compensation plans fall into binary, breakaway, matrix, stair-step or uni-level plan but there are other plans out there as well.

Some of these binary plans have different levels of depth that you can build your organisation or team. There are some companies that have legs in which you place your team or distributors. Some MLM companies pay distributors on the weakest leg. The company earning its commission on the strongest leg. I have heard of distributors who have lots of people in the strong leg but may stuggle to build the weakest leg. As a consequence they have less people in their weak leg. This can mean doing a lot of work for little compensation.

The difficult problem that so many people in MLM they do not get given the right information about compensation plans. Or have little or no knowledge about the company and its terms, conditions and the products. There is a “mindset group” that has open membership that offers training, mentoring and support for free. This group in its training will show you different companies and with how binary plans work. They will give you the information to make a choice on which company pays the best compensation to you.

The majority of people in MLM start off on a part time basis. Usually they take on a home base opportunity to increase the household income. Surely one will want the best income possible. Everybody knows that when undertaking something like a home base business good advice is essential. Most people who try network marketing often end up spending lots of unecessary money.

The purpose of this article is to confirm network marketing is a wonderful opportunity. However, most people succeed in MLM who improve their skills sets, use the best methods and who have supportive mentoring. The great thing about this “mindset group” is that it does not charge you. They will be there as your foundation to give you the building blocks you need to succeed in finding the best compensation plan and the right opporutunity for you.

Contact Paul Waters on;

Tel: +1 239-220-5607 (USA)
Tel: +44 115-714-1922 (UK)



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Originally posted 2010-11-16 10:39:20.