Is Your MLM Underpaying
You?
Ultimately, the key to
achieving your desired
income depends on the
compensation plan of the
company you are involved
in. Even though your
income will get larger
the more you refer and
the larger your
organization grows, the
company just may be
keeping most of it.
For example, one
distributor may be
earning ten thousand per
month with ten thousand
members in their
organization and another
distributor could easily
be making ten thousand
per month with two
thousand distributors in
their organization. Now
this is only an example,
but as you can see the
second distributor has
five times less the size
of organization and is
making just as much. Yet
another distributor may
need even less...how is
this possible? They are
in different companies
with different
compensation plans. You
would not know which one
is you unless you know
the compensation plan of
your company.
All MLM companies are
here to make money. The
question is how much are
they willing to reward
the distributors for
their hard work? Think
of deciding which MLM
company you will work
hard for the same as
looking for a job. Would
you settle for ten
dollars per hour instead
of fifty dollars per
hour? I think not!
Over your course of
network marketing you
will come across many
companies. I can not go
over each and every
possible compensation
plan but I can give you
some tips of things to
watch out for. Some
companies are geared
towards rewarding heavy
hitters, those who will
sponsor many, and that
is at the expense of the
part-time distributors.
Other companies are
simply looking out for
themselves, and they
simply won't reward
members much at all.
Lastly, there are a few
that have compiled very
rewarding compensation
plans because they know
that if their members
are successful then they
will be too, and so they
offer very generous pay
plans. Here are some
things to consider:
1) Are there
qualifications? If so,
how hard are they to
achieve?
If there are a lot of
qualifications in order
to earn income, or if
these qualifications are
hard to achieve then
this is the type of plan
that hurts new marketers
or part-time
distributors. It may be
rewarding to heavy
hitters, but the
majority of the people
simply won't qualify for
that type of income. Is
their breakage or rollup
that goes to the company
if distributors don't
qualify? These types of
rules only line the
pockets of the company
or heavy hitters. Look
for a plan that has few
qualifications that are
easy for anyone who
works the business to
achieve.
2) What is their
percentage of payout?
This may not be easy to
figure out in some
cases, but if you are
able to get a good grip
on the pay plan you can
see the numbers and find
the percentage of
revenue that the company
pays its distributors.
Most will pay 40-50%.
This is not bad, but I
would not say it is good
either. This type of
percentage is fine for a
side business that you
have added to your
portfolio to create
multiple streams of
income. For your primary
business you want
something that will be
more rewarding. If your
company pays out 60-70%
that can help you make a
decent income fast. If
your company pays out
more than 70% then
you've found a very
generous pay plan.
3) How big of an
organization would it
require to earn $10,000
per month?
This one you can easily
figure out by looking
over your compensation
plan. This does not mean
personal referrals, but
your whole organization.
How many people need to
be in your organization
in order to make 10,000
dollars each and every
month? The lower the
number is generally
better because it could
mean less work for more
money. You can use this
as a general rule when
creating comparisons.
However, you need to
take a close look at
your product and
membership fee to see if
this is true for your
company.
4) How quickly and
easily can someone start
making money right away?
This will determine if
your organization will
be able to keep growing
and prevent people from
dropping out. Once
people have a taste of
money they are likely to
get excited and work
harder. If your
compensation plan is
able to reward new
distributors for their
accomplishments right
away by getting them
into profit quickly they
will continue to build
their organization.
However, if they refer
members and get only a
small return they will
not be encouraged.
Someone has made money
in any pay plan. This is
because money can be
made in any pay plan if
you know how to
effectively build each
one. This discussion is
not about that, but the
fact that not all pay
plans are created equal.
On your search for the
right MLM company the
pay plan is a crucial
element to your success,
because that is where
your money comes from.
I want to highly
encourage you to take a
close look at your pay
plan from an honest
point of view. Is it
fair? Is it rewarding?
Or do you need to
promote yourself to
something better?
Darren Olander is
dedicated to teaching
others how to create a
success online through
internet network
marketing strategies. He
is a site owner, article
writer, coach &
marketing consultant
enjoying the benefits of
working full time from
home. Learn more about
him at
http://www.darrenolander.com |
