MLM Compensation Plans – What Pros Look For
When considering MLM compensation plans every network marketing professional wants to know how they can make the most residual income in the shortest time possible. They want to know how they and their downline team can retire most efficiently, so they ask two questions.
1. “Where is the breakage?”
2. “Where is my opportunity to leverage the plan for the greatest profitability?”
Breakage is the money earned through the retail sales of product that the company uses to pay its overhead and make money. So if the company needs 85% of all income earned to pay its bills and turn a profit, then it “breaks” that 85% off of the total revenues generated and gives the remaining 15% to the reps in the form of income incentives.
There are as many income opportunity plans as there are types of opportunity seekers.
1. Stairstep Breakaway: favored for its achievement level bonuses.
2. Unilevel: attracts recruiting monsters.
3. Binary: chosen for weekly, volume based pay.
4. Matrix: liked because it permits downline placement.
However, all networking professionals have lamented the weak points of all of the above. These down sides prevent business builders from earning maximum residual income. Plus, these flaws make it impossible for most distributors to get qualified to make any money.
For decades commission-plan savvy entrepreneurs have searched for a passive income structure that eliminates:
=> Coding bonus check loses experienced with Stairstep Breakaways.
=> Limited depth related pay in Unilevels.
=> Attention to pay only for 1/3 of the work, or offering nothing without perfect 1/3 weak leg – 2/3 strong leg group volume distribution found in Binaries.
=> Welfare minded spill over junkies counting on Matrix builders for pay.
Finally one network marketing company put the best of every pay system in one place … and improved them.
* Bonuses for team-level achievement that does not drop off as people advance.
* Infinite levels of depth for true legacy income.
* Compensation on all volume produced for super royalty income growth.
* Fair commission calculation based on productivity over sign—up rates.
Plus a final bonus feature: one retail price for everyone. This removes the motivation to “garage qualify” just so representatives can earn a paycheck.
All MLM compensation plans are flawed. Some are more so than others. If your motivation is to find a home-based business with a business comp structure that is aggressive at giving what the superstars crave (less breakage) and adds even more earnings opportunities, then let’s chat.
I appreciate you,
Bill Tessore
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