There are so many different types of compensation plans you really must look closely at the one being offered to you. You are going to come across various matrix and binary plans. You will even see a single leg plan if you look hard enough.
Most MLM compensation plans are good because it allows you to benefit from the efforts of people above you and below you. If you are lucky enough to get into a business where your upline enrolls a lot of people underneath you, you really can benefit from that.
However if you’re in a business where you are expected to enroll a lot of people personally to make any money it will be much more difficult. The primary problem with this is the attrition rate that comes with MLM businesses.
The high attrition rate can also be attributed to inexperience. Many beginner network marketers believe that they will get rich quick with minimal effort and that is not the case at all. Usually they are in the company around three months, all of which they have paid out more than they have earned back and they decide this must be a scam because they have not earned any money.
Some people just simply do not put in the work necessary to earn an income within three months, while many times the compensation plan just does not pay sufficiently at the entry levels. I will talk more about these plans below...
One of the reasons I chose the Featured Opportunity that I did is because they are determined to lower the attrition rate within their company. They are doing this by putting some money that would otherwise go to the company into a credit for the distributor that goes directly for their monthly purchase. They are the first company to offer it and I think it is revolutionary. They made it so a distributor can sponsor two to six people depending and cover their operating costs. Its called the Break-Even-Bonus. Learn about the details of the Break-Even-Bonus by going to my Featured Opportunity.
Every company will have different wrinkles in their compensation plan to make them unique and it is important to try as best as you can to understand the different plans in the industry. Understanding means, you can recognize how they work and will function in a given company.
Also, many companies are using hybrid plans that are a combination of different plans. Many times these can be very good for you because they take two plans and mix their strongest features in order to give you the best chance to be successful.
A good company will have educational presentations on how their plans work. When you choose a company study these presentations because inevitably you will be asked by many of your prospects how the pay plan works.
These are the different pay plans that you will most likely see...
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