A Look at Multi-level Marketing Compensation Plans
A Look at Multi-level Marketing Compensation Plans
Multi-level marketing businesses are popular primarily
because of their attractive compensation plans. There are
different ways a multi-level marketing pays their members.
Some pays them outright. Others pay bi-monthly and still
others cash out all the member's benefits on a monthly
basis. Actually, it really doesn't matter how seldom or how
frequent a company pays their members. What's more important
is that they pay on right on time at all.
The attractive compensation plans of multi-level marketing
companies come from different streams. The first, and
usually the most important stream is the downline stream. A
lot of MLM's pay their members for every recruit that they
generate. This is especially true if the MLM business
requires for some sort of registration fee, setup fee, or
sign up fee from the new members. For example, if new
members need to pay $10 to join the program, their direct
referrer will earn anywhere from $1 to $5 as per agreed
upon. This means that the more people you recruit, the more
commissions you get.
Another income stream would be through your direct sales.
Most MLM opportunities revolve around the promotion of a
certain service or product. And so whenever you successfully
closed a sale out of your own sheer marketing efforts, then
you will be paid a certain percentage of the total sales you
managed to post. If you were able to send a total sales
amount of $120 for the whole month of April and the MLM
company pays you 30% of your sale, then you'll have $36 more
in your next payout. This is paid to you on top of the
commissions you gained from your recruits.
MLM companies also pay you for the activities of your
downlines. If all of your downlines managed to make an
aggregate sale amounting to $100 and the multi-level
marketing compensation plan says that you are entitled of
10% commission for that, then you should have $10 out of
their marketing efforts. This is a good compensation plan
because this is what can give you residual income. For as
long as your downlines are active and are doing their part,
you should be able to collect income from the MLM company
regardless if you work or not. Some programs even allow to
downline sales commissions up to 3 levels deep.
These are the three major income streams of an online multi
-level marketing business. There may be others still. The
other compensation plans are usually implemented on a
certain company alone and not across all MLM's. This is
actually where MLM's become different. Other MLM
opportunities would pay you just for the three basic income
streams stated above. But there are others that would think
of other creative ways to pay you so you'll be more enticed
in joining their program.
One creative way to earn is through the mere promotion of
the splash page. Although there are only a few MLM companies
that actually pay a few dollars per thousands of
impressions, this is still a convenient way to earn through
this stream. If you stumble across an MLM company that pays
you as you promote the main site, then you are actually paid
for promoting your affiliate link, which directly benefits
you as well.
MLM companies are getting more and more competitive these
days as far as compensation plans are concerned. It is upon
you to actually choose the one that would maximize your
earning potential.
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