Avoid Choosing A Network Marketing Company That Offers The Unilevel Compensation Plan!

Avoid Choosing A Network Marketing Company That Offers The Unilevel Compensation Plan!

There are many criteria that go into the making of a successful MLM business. Choosing a network marketing company with a profitable compensation plan is one criteria that will be a major factor in the success of your business.

When comparing the unilevel compensation plan to other types that are offered by the thousands of network marketing companies out there today, it falls short, in my opinion. There are some advantages, like its simplicity, but in the long run, unless the company has modified their plan, you may not earn as much as you deserve in your MLM.

With the unilevel compensation plan, you build your organization by enrolling people who make up the first level under you. You earn a certain percentage of sales from your first level of people. When your first level, enrolls people into their first level, they become your second level and you are paid a certain percentage of the sales from this second level as well. Each company is different and will pay you a certain commission percentage down a certain number of levels.

Usually in this type of plan, you are encouraged to build a huge first level because it is the only level of people that you personally enroll and the company only pays you for building down a limited number of levels. It encourages personal selling and those who have a talent for recruiting a large number of people usually do the best in this type of plan.

So because you are limited in the income you can earn from developing your organization under your first few levels, you make the most income by growing your first level. The resulting disadvantage of this is that it discourages the team from growing a strong, deep organization that has upline and downline support. In addition, in a true uni-level plan there aren't promotions or ranks that you can rise to which does not motivate you or your team.

When choosing an MLM company be sure to research how much money is paid out at the different levels you are supposed to develop. If large amounts of money are paid on the first level and smaller amounts are paid on the lower levels, you will make a lot more money than if smaller amounts are paid on your first level and larger amounts on the lower levels. If you recruit people who are good business builders, you will make some residual income. If your first level is made up of people who are not good business builders you will not create good volume in your first few levels and you will not make any money.

Most companies using this plan have now modified their system to make it more attractive to potential business builders. They will add in bonuses for encouraging more levels in your organization and to add more motivation to your team. They may also have rank promotions built into the program as an added incentive to grow your organization. My advice for the uni-level compensation plan is to look at the whole plan, including bonuses, how many levels deep they pay you for, if they pay you more for your first level, and other incentives and remember to really study the compensation plan of every MLM you are considering when choosing your network marketing company.

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