An Overview Of Mlm Compensation

MLM compensation can at first glance seem intimidating

. It is my hope to shed some light on this subject for you with a basic introduction. There are 4 basic types of MLM pay plans that are being utilized in network marketing today. Each comes with its own strengths and weaknesses.

Stairstep/Breakaway Plans

These MLM compensation plans are structured like a flight of stairs. Each step representing a higher level of achievement. As product volume and group volume increase, the higher you ascend on the staircase. The higher you rise, the greater your commission rate and bonuses on downline production.

The people in your downline are also climbing the same set of stairs. When they reach a certain level of achievement, they and their downlines "break away" from your team. It is generally at this point that the volume of the breakaway group is no longer included in your monthly production quota and your commission from this distributor and their group is generally reduced. Interestingly enough, you have the potential to make more money from the breakaway leg, because you are paid on the total group volume of that leg

Matrix Plans

In a typical MLM matrix pay plan, strict limits are set on both the width and depth of the organization. For example in a 3 x 6 plan, you are allowed 6 levels of depth, but your frontline is only 3 people wide. The first three people you recruit will full up your first generation line. The fourth person will then "spill over" onto the next generation level.

Unilevel MLM Compensation Plans

A typical unilevel pay plan resembles a stairstep MLM compensation plan in many respects, with the exception of breakaways. There is generally a limit set on the number of levels from which you can earn commissions; however, there is no limit on the width of any generational line. Advancement to higher achievement levels and higher commission levels are achieved by meeting specified monthly volume goals.

Binary MLM Pay Plans

Similar to a "2 x ?" matrix plan, a typical MLM binary plan only allows for two people on the frontline of your organization. Your organization divides into two legs, "a right leg" and a "left leg." Commissions are generally paid only on the weaker leg, usually determined by lower sales volume during the current payout period. Generally no commissions are paid on the stronger leg.

Although there are advantages and disadvantages to each type of MLM pay plan, you can generally do well with any of them, by applying the fundamentals of lead generation, relationship building and downline training.

by: Carl Willis

POST COMMENT

Your Ultimate Resource For Accident Compensation Advice Stairstep/breakaway Mlm Compensation Matrix Plan Mlm Compensation Claiming Compensation For The Loss Of A Chance Hints To Seek Necessary Compensation When Hurt During Work Time Reglan Lawsuits Can Lead To Compensation For Those Suffering From Tardive Dyskinesia Compensation For Whiplash, Win Your Claim ! Are You Entitled To Ppi Compensation? Binary Mlm Compensation Benefits of Hiring Work Accident Compensation Claim Solicitors Compensation for Whiplash: How to Claim It Accidents at work - are you entitled to compensation? How Workers' Compensation Benefits Work