subject: MLM Plans – Are You Interested How You Will Get Paid? [print this page] MLM Plans Are You Interested How You Will Get Paid?
The fact that you are looking for information about MLM plans for compensations, indicates that you understand the importance of comparing the existing comp plans that are out there as this is our main reason for being involved in Network Marketing; to make profits and the most profit related topic is compensation plans. Why would you pick a company with a pay plan that's not lucrative enough if you - with a little research - can select on of the best ones? First of all I give you a short list of compensation plans and then I discuss in detail the ones that I recommend and the reasons why. The comp plans are the following: Breakaway, Matrix, 2-up, Unilevel and the Binary.
The Unilevel MLM Plans
First of all we could call the Unilevel MLM plans classic as they were already there in the 80s and 90s, however people found it quite boring so it had to be changed a bit. After the changes Unilevel has become one of the greatest choices of MLM plans. Unilevel allows limitless number of reps on your front line (that is the first level below you in your organization), we often refer to this feature as unlimited width. Unilevel pays out usually up to seven levels down (7 level depth). This makes it really a no limit income potential because once you already got down to the seventh level in depth, you can then start another line on your first level and build that up again.
Choose the Unilevel MLM plans that pay out more and more percentage as you build down in depth, for example you get paid 5 percent on your second level but if you build deeper and go down to the sixth level you get paid 7 percent. Simply put the better you do the higher you get paid. That's a good thing but this also means that you get paid low percentages when you starting out. That's right and that's the reason why most Unilevels have a Fast Start Bonus which basically means that you get paid around 20 percent when you sign up a new distributor for a limited time and then it changes to normal Unilevel. Another way to do this is when you get a little cash reward anytime you sponsor new reps.
There is another great thing involved if you build a huge organization and you become a top producer, then you can get a little percentage (2-3 percent) of the bonus pool which is the sum of the sales volume generated all around the world. Unilevel MLM plans pay monthly. The only problem I would say is that the synergy level of this plan is quite low but this factor can be changed by strategically planning the placement of new distributors.
The Binary MLM Plans
In the Binary MLM plans you typically have 2 legs, a left and a right and it does not matter who signs up a new distributor in the organization, the new person automatically gets placed under the person on the bottom. However, it does not mean you don't have to work, since the challenging part here is to balance the volume of your two legs as you get paid up to the volume of your weaker leg. So if you have 1 000 dollars volume on your left leg and only 500 dollars on the right, you get paid only after 500 dollars volume. The rest of the volume you have not got paid for will stay in there and waits for you to balance your other leg.
The biggest advantage of Binary MLM plans is the synergy. People can get excited when they see that their sponsor places a new distributor under them. On the other hand when you have some unpaid volume stayed in the system you feel you want to take it and that's a great motivator too. It pays out 5-10 percent on a weekly basis.
MLM Plans of The Future
Unilevel and binary MLM plans are getting more and more popular (especially the combination of them which is designed to keep out the disadvantages and include the advantages of both plan can you imagine how powerful could that be), and I recommend them only, as Breakaway, Matrix and 2-up are losing their popularity and the percentage of MLM companies using them is also dropping quickly. Please not that even if you managed to select a great MLM company with a unique product and a lucrative compensation plan it would not be enough to succeed in Network Marketing, yet it is key to your success. In order to start your journey to MLM success you have to have laser targeted prospects coming to you on a daily basis.
