subject: Understanding the Compensation You Get From Your MLM Plan [print this page] Understanding the Compensation You Get From Your MLM Plan
People go online to join a network marketing program because of the money they can easily get from the business. The income is generated through its compensation plan. This is usually the first thing you check out when you are planning a career in network marketing or multi level marketing business. Of course before you jump in and choose your MLM plan, you have to remember that not every company's compensation plan is created equal.
First of all, when you are looking to choose a MLM plan, you have to take into consideration whether the company's compensation plan will meet your needs and desires. After all, you do have a certain set of goals you want achieved that is why you are looking for an online business.
The next thing is that you have to view the plans in a realistic manner. You have to consider how long you are going to have to wait until you get to a certain level of income generating compensation plan. Ask yourself how much time you are willing to sacrifice for it and how much energy will you be asked to put into a project. If you can answer all these questions specifically then you will have an easier time to determine things.
Each compensation plan model varies greatly, just as every MLM plan of a certain company is different. The most common types are the BINARY, UNILEVEL, MATRIX and STAIRSTEP. To further understand how earning income works in MLM, you need to understand all these four models.
The Binary compensation is also known as the "leg" system which means that those under you who create sales or generate income will likewise count towards your compensation. The UNILEVEL is the easiest to understand among the compensation plans. If you are less knowledgeable in the world of multi level marketing, a set of number of levels that have unlimited width is a great plan.
The matrix type of a MLM plan is a little bit complicated as there are various forms of matrix compensation plan. The advantage lies in the spill over effect since only a certain number of people can be on the top levels. It is usually a great compensation plan if you are familiar with how it works and what form you are working with in particular to your MLM opportunity. Lastly, the STAIRSTEP is the most common in the MLM industry. This model involves the "breakaway" form.
