MLM or Network Marketing companies have several ways that they pay the people who join their companies, who are known as Distributors. Here are a few ways that MLM companies pay. Some may even use a combination of these plans. When you read the compensation plan it is based on a grid that consist of Legs and Levels. Each Leg represents every person that you enrolled with the company to build a business. The levels go down like the lines on notebook paper when numbered. Each level has a specific percentage that is paid times the number of people on that level.
- Binary – This plan only allows you to enroll 2 legs. If you enroll more people they will be enrolled underneath your 2 legs. You don’t get paid on both legs only on the shorter leg. This requires that you constantly monitor who is enrolling and how. The best way to benefit is to keep your 2 legs even or the same amount.
- Matrix – This is a grid plan that limits your legs and levels like 4×4 or 3×6. This means that you can enroll as many as you want but you will only have 4 people (or whatever the first # is) on your first level and you only can have 4 (or whatever the second # is) levels down. When you enroll 5 people in a 4×4 matrix your first 4 people are on your first level. The 5th person is place under the 1st person that you enrolled and so on for as long as you keep enrolling. You are paid on every person that falls inside that grid. This entails a set amount of income.
- Unilevel – You are allowed to have as many legs as you can enroll – unlimited. You are paid a specific percentage on each level for a certain number of levels,lets say 6 levels, and each level increases in percentage. Ex. level 1 = .25% Level 2 = .33% Level 3 = .45% and so on down the the level 6 = 1%. The harder you work the more you make.
- Dynamic Compression – This occurs after a certain level like level 8 for example. So on level 9 and beyond to infinity, every person’s transaction is added together and compressed up to level 8 and you get paid the same percentage that is paid on level 8. This works well with the unilevel compensation plan because you can go as wide as you want to with legs and as deep in levels as you train everyone below you to duplicate you. You have great control of your income. You want more money enroll more people and create more legs then train them to do the same thing so that your legs go down deep in levels.
When you are reviewing an opportunity review the entire opportunity and take these steps to making a decision to choosing what opportunity will get you to where you want to be in the future.
- Listen to the entire Opportunity – Don’t judge the opportunity by the messenger. A strong opportunity can stand alone and doesn’t need a spokesperson to sell it.
- Review the product - See what benefits the product has. It really matters if your have a strong product because this determines if you will have repeat sales. People will keep buying anything that works for them no matter the cost. Is the product documented? Patented? Researched? These points add value to your opportunity.
- Review the compensation plan and how you qualify for the different payment titles, bonuses and trips. Is there breakage? Breakage is when someone in your group doesn’t qualify for some of their income for whatever reason and that money goes to the company. You DON’T want breakage in your compensation plan. If the compensation is too complicated to understand then I advise to stay away from that company. If you can’t understand how to make money you probably won’t.
- Review the company’s history. Who are the founders and what are their back ground experience. Some network marketers have gotten together and opened a MLM company. They start with a compensation plan and then throw together a product that represents whatever the current trends may be at that time.
- Analyze the person that is presenting the opportunity. This is the person that will teach you how to succeed in that business. Do you feel that they are knowledgeable enough to teach you how to build your business. Training matters when you begin. Find out what their training strategy is and if you can do it.
Transforming your life from the mundane to the extraordinary takes you doing your due diligence and follow some of the advice given combined with hard work in learning the training and doing the steps to achieve success you will surely be able to achieve your goals in no time.
