Category Archives: Mlm Compensation Plans

Unilevel Plan Mlm Compensation

Unilevel Mlm Compensation Plan Review

Do yourself a favor; seek out third party information, facts, and resources that deal with exactly what it is going to take to be successful in this industry first, before you make a decision about any company or make an investment in any business opportunity including a Unilevel plan.

Be sure and check out the Bonus Unilevel Compensation Plan Video that goes with this article by clicking the following link:  Unilevel PlanVideo

You can also watch a YouTube Video of this at: Unilevel Compensation Plan

So… you are going to invest yourself, your time, energy, dreams, and resources into building a business. If as new distributors you better understand the dynamics of the pay plan you will be better able to choose the right opportunity to invest your lives in. 

It has become increasingly clear to me that Mlm Compensation Plans should be subjected to the same evaluation process that any Mlm opportunity, its leadership, products, and marketing system go through before you make a decision about joining.

While the pay plan is clearly important, it is only one part of any MLM opportunity. It is your duty to look at the whole package, including but not limited to:  Pay Plan, Products, Automated Tools, Market Size, Leadership, Start-Up Costs, Mentorship, and your personal level of Skill and Preparedness.

Are Unilevel Plans proven and sound?

Unilevel Compensation Plan

 mlm compensation plan

The Unilevel Plan has been around for many years and has a solid proven track record in the industry. Governmental regulators in North America generally prefer the Unilevel Mlm Compensation Plan to other plans.

Considered to be a true grandfather among Mlm Compensation Plans over 70 percent of the companies started in the past decade are using Unilevel plans, and that percentage appears to be growing.  The popularity and longevity of the Unilevel model may be undisputed, however, like all compensation plans there are both benefits and also drawbacks to be considered before choosing a Unilevel plan opportunity.

Are Unilevel Mlm Compensation Plans a Pyramid Scheme?

mlm compensation plan

Pyramid Schemes are illegal enterprises. Some Mlm Compensation Plans may look like a pyramid when they are filled up, but with legitimate pay plans the similarity ends right there.

You see, the Unilevel plan is not set up to be a recruiting game where people are only joining for the opportunity to make a lucrative payout off recruiting new members. The people joining Mlm pay plans have to be joining for a reason other than to just make money by recruiting. There must be a legitimate product or service for distributors to market. The recruitment of new enrollees does not qualify as a product or service. Payment for signing new people into the organization and for that only would be a pyramid scheme and that’s strictly illegal.

An easy way to spot a pyramid scheme is there is no legitimate product or service for sale. Another clue is there is no payout unless you successfully recruit a number of people into the pyramid. You’re paid on enrollee’s and generally there is no selling or marketing of any products or services necessary to receive payment. 

 

The basic concepts of Unilevel Plans include:

 

  • Unilevel Plans are not a one level only plan as the name might suggest. The plan usually allows 3 to 9 levels of depth as well as allowing for unlimited first level sponsored width.

 

  • Unilevel plans usually have varying payment rates for differing depth levels (common plans that we have reviewed pay commissions between 5 and 7 levels deep).  and also include one or a number of special bonuses as compensation.

 

  • Special Compensation features of the plan usually include: roll-ups, compression, and/or infinity bonuses (all of these terms refer to the process of product volume rolling to the next qualified distributor in the line when one distributor in the chain may not qualify to earn it.)

 

  • Unilevel, as the name suggests, only allows you to sponsor one front line of distributors, therefore everyone you sponsor is on your frontline.

 

  • Therefore, the common goal of this plan is to recruit a large number of frontline distributors and then encourage them to do the same.

 

Advantages of Unilevel Plans

 

  • Unilevel plans are relatively easy for companies to administer, and for distributors to explain to potential recruits.

 

  • This compensation structure is more attractive to full-timers, and experienced network markers with the ability to recruit large numbers of distributors, and develop management and training systems for their growing downline.

 

  • There is normally only a minimal amount of personal volume that is required to qualify for commission payments. Lower personal volume requirements than say for some other type plans makes it easier for most distributors to stay active.

 

  • The Unilevel plan allows unlimited sponsoring on the first level. You can go as wide as you desire creating unlimited potential income.

 

  • The Unilevel Mlm Compensation Plan doesn’t create as much incentive for “inventory loading” or the stockpiling of product that other plans may.

 

Disadvantages of Unilevel Mlm Compensation Plans

  • The depth of levels they pay commissions on limits Unilevel plans. This restriction inhibits the creation of deep sales organizations.

 

  • If you have a very strong builder/producer far down in your organization you may not see all the benefits and commission from them.

 

  • As front line width grows and a sponsor’s attention is spent on recruiting, it may cause them to be “thin” in their support of newly enrolled distributors.

 

  • When distributors are taught to go wide, it is easy to forget about the needs of their downline distributors, who are several generations removed. This can become a team management and organizational obstacle for many aspiring marketers.

 

  • One of the main disadvantages of the plan is that every distributor you sponsor becomes crossline to all of your other frontline distributors and therefore must work in competition with the other members of your organization.

 

  • An ever-increasing frontline requires continual training of new distributors and having to manage new distributor needs.

 

  • Track records show that most companies that start with Unilevel plans eventually adapt them to look more like Stairstep Breakaway plans overtime. Be aware of the potential for this plan to evolve over time.

 

  • Although it tends to be easier to earn commissions with a Unilevel Plan, you do not tend to earn as much as you would with other type plans. This trade off may or may not be suitable depending on the needs of the distributor.

 

  • Full-time experienced “heavy-hitters” can become discouraged by how long it takes to reach the big money when using a Unilevel Mlm Compensation Plan.

 

What you need to know about Unilevel Mlm Compensation Plans to make them work? 

 

When checking out a Uni-Level Program, be aware of the total amount paid out and where those payments are going in the compensation plan. There are different amounts being paid on different levels in different kinds of plans. If only small amounts are paid out on the first levels of a plan, and the real income is in the lower levels, are you the kind of marketer that this will work for? Do you stand a chance to recoup your monthly output if you are not yet capable of building depth?

Consequently if you find a plan that pays a lot up front in the first several levels but not at the deeper levels, does this suit your abilities, time, and style. Are you a part-timer looking for a few extra bucks or a full-timer looking to replace an income? Maybe you’re more ambitious still.  What is your real chance of achieving your personal goals based on the kind of marketer you are, and the plan you are considering. Only you can decide if the plan you are considering will be a match for your personal needs.

Most plans pay between 35 and 45 percent of the company’s wholesale purchase volume, and about 30 percent of suggested retail volume. Look for a plan that divides the profits in your favor without going overboard. A plan that is overly “generous” to its distributors especially at the early levels in the pay plan can run itself into financial ruin. A balance that is healthy for both the company and the distributor is a necessary feature of any good plan that is going to last and provide a steady dependable long-term residual income.

The Unilevel Compensation Plan is in general best suited for those who have network marketing experience. It tends to favor those who are very confident in their ability to recruit a large number of frontline distributors. It also requires training systems and good management skills to assist and train your ever-widening front line of new distributors and create duplication in your teams.

Like most compensation structures this model does offer the potential to earn a very high income for those willing to acquire the knowledge, skills, tools, training, and systems necessary to succeed with a Unilevel Compensation Plan.

Aspects of Unilevel Mlm pay plans that you may not be aware of

 

Most modern network marketing companies using this model have made slight changes to the basic Unilevel Plan to increase its attractiveness to new distributors and to encourage and allow some partial teamwork. Most Modern Unilevel Plans also include a number of bonuses to sweeten the pot and make this older compensation plan more appealing to today’s modern Mlm Industry.

In the past “Big Gun” recruiters couldn’t make money as fast as they could with other compensation plans, nor could they earn as much. This tended to give the Unilevel Plan a bad reputation that hurt their popularity. However, recent revisions, improved rules, and enhancements to the basic Unilevel structure, have eliminated these weaknesses and the popularity of the Unilevel Mlm Compensation Plan has risen once again.

Unilevel plans now offer lucrative infinity bonuses and other forms of compression to bring the big money back into the plan. These bonuses have allowed top producers to draw income from deeper in the compensation plan than previously possible. Large payouts are being generated with Unilevel plans today, and it is considered by many to be among the most stable and lucrative pay plans in the industry.

How do Unilevel Plans pay you?

 

Unilevel Pay Plans pay out a moderate amount, or a percentage of the total sales volume of the first several levels in a person’s organization. The first one or couple layers of the plan, pay anywhere from one to, ten percent on these levels. The rest of the remaining percentage (out of 100 percent) is spread out and paid in any number of ways throughout a number of levels. Usually seven to nine levels deep.

The Newest companies use what is called Unilevel Compressed Plans. If a company decides to pay $0.50 of every dollar earned to distributors, it will not stop at a fixed depth level. This means that if distributors, who are too deep in the plan for you to get payment on normally, do not qualify for a commission payment, then the remaining commission will flow up levels in the plan to the next qualified person and the complete $0.50 will be paid out. This is called “dynamic compression.” Commissions not earned by downline members roll up to distributor leaders instead of becoming profits by default to the company.

The Unilevel in recent years has offered several powerful incentives. Where dynamic compression is not present, you may find some kind of infinity bonus. This also helps distributors temporarily dip down to deeper levels in the plan to capture profits.  Also, nearly every Unilevel plan now offers a front-end fast-start bonus that pays a special one-time bonus amount on the first orders of new customers and new distributors.

These bonuses and new plan features all help overcome many of the compensation plan complaints that one time discouraged distributors. It makes the plan fairer for those who work the hardest, and produce the most.

Will a Unilevel Mlm Compensation Plan work for you?

 

2-5% of the distributors in any network marketing opportunity (the ones making the big money, building stable teams, and understanding what it really takes and applying it) will say network marketing is the greatest opportunity they were ever introduced to bar none!

Of the 95% of others, reviews will be a mixed bag ranging from ‘I made a little money,” “it wasn’t for me,” to “it’s an outright scam and a pyramid scheme”. This is true of not only Unilevel Compensation Plans but also of the Network Marketing Industry as a whole.

The difference between win or lose, is in the tools and training you receive, and in the person you are willing to become to succeed. Are you, or are you not, willing to become trained and informed to succeed in this industry? Are you ready to apply the knowledge and skills you learn on a daily basis? Are you really ready to take your life business and income to the next level? These are questions you should have answers to before joining an opportunity or considering Mlm, not after.

That’s actually the reason I put this article together. I think matrix plans are a great opportunity for the right person. But I also understand that it takes a lot of marketing knowledge, proper training, discipline, and mentorship, for most people to earn a significant income from home. People need to hear the truth; they need answers not hype. They need mentorship and strategies that work.

So I am extending an offer to people who are both looking at Unilevel Plans and to those already involved with them. To those looking at Mlm and to those already involved. I will help you learn how to recruit people, and build a sustainable residual business income from home using modern day MLM tools and strategies. The game has changed significantly, yet too many old boys are still flogging a dead horse telling you he’ll still plow just fine for you if you’ll just believe and want it bad enough.

So what I’ve done is put together an incredible amount of cutting edge information, tools, training, and resources that will teach you exactly how to succeed in Mlm, and it will work for you whether you’re involved with a Matrix plan, Binary, Stairstep Breakaway, or any other reputable Mlm Pay Plan! You need to come check me out on my blog at www.daveschlueteronline.com and sign up for some free training and my newsletter right now, then enter the training porthole at www.workwithdaveschlueter.com .

In Closing:

I’ve got some valuable bonus training I am  offering  you today… as my way of testing you to see if you are serious about building your Mlm Business..  You need to Click the following Bonus training link now for this very special offer.

This VIP Webinar Takes You Deep Into the Marketing Mind of a 7 Figure Income Earner and Gives You the Exact Ads He Used, Scripts He Spoke, and the Websites He Leveraged to Build a $1,000,000 Dollar Network Marketing Empire in Under 3 Years, and How You Can To with a Unilevel Plan or not!

Bonus Link: Free Bonus

mlm compensation plan

Forced Matrix Mlm Compensation Plan Review

Forced Matrix Mlm Compensation Plan Review

Do yourself a favor; seek out third party information, facts, and resources that deal with exactly what it is going to take to be successful in this industry first, before you make a decision about any company or an investment in any business opportunity or MLM compensation plan including any Forced Matrix plans.

 

Be sure and check out the Bonus Video that goes with this article by clicking the following link: Forced Matrix Video

Or You can watch this video on YouTube at: Forced Matrix

 

So… you are going to invest yourself, your time, energy, dreams, and resources into building a business. If as new distributors you better understand the dynamics of the pay plan you will be considering, then you’ll be better able to choose the right opportunity and business to invest your lives in. 

 

It has become increasingly clear to me that Mlm Compensation Plans should be subjected to the same evaluation process that any Mlm opportunity, its leadership, products, and marketing system go through before you make a decision about joining.

 

While the pay plan is clearly important, it is only one part of any MLM opportunity. It is your duty to look at the whole package, including but not limited to:  Pay Plan, Products, Automated Tools, Market Size, Leadership, Start-Up Costs, Mentorship, and your personal level of Skill and Preparedness.

 

With that being said, let’s now look deeper at MLM Compensation and the Forced Matrix Plans.

 forced matrix

Are Forced Matrix Plans proven and sound?

 

Forced Matrix Mlm Compensation Plans have not been around that long nor do they appear to be very popular among companies in the industry. Only about 9% of the thousands of Mlm Companies out there employ Forced Matrix plans as their sole means of MLM compensation. And even among the few that do, most have had to modify the Matrix plan in order to survive.

 

One major problem and complaint is that the Forced Matrix type Plan fosters lazy distributors that don’t produce. This is a great source of frustration for upline producers willing to put real time, effort, and work into their business.

 

Nevertheless, several major companies operate Forced matrix plans and they have been around for 15 or more years proving their Forced Matrix Systems resilient against the test of time in the MLM compensation plan world. Successful changes to their plans have insured their longevity. Only time and further data will really determine whether the Matrix is here to stay or not.

 

Are Forced Matrix Plans a Pyramid Scheme?

 

Pyramid Schemes are illegal enterprises. Forced Matrix Mlm Compensation Plans may look like a pyramid when they are filled up, but the similarity ends right there.

 

Unfortunately MLM Forced  Matrix Plans have attracted the attention of State Attorney Generals, Postal Regulators and other regulatory agencies because they have appeared to look like Pyramids and even Lotteries. They also have not proven themselves to be that successful. This has caused great misunderstandings about this type of MLM compensation that have led to a large amount of negative publicity for the Forced Matrix.

 forced matrix

An easy way to spot a pyramid scheme is there is rarely a legitimate product or service for sale. It’s more of a recruiting game with a buy-in price to be paid. Another clue is there is no payout unless you successfully recruit a specific number of people into the pyramid. You’re paid on enrolling and generally there is no selling or marketing of any products or services necessary.

 

The Basics Features of Forced Matrix MLM Compensation Plans Include:

 

  • Limited width. That is to say that the width on the distributors’ first level of distributors is a set number of people that usually ranges from two to five people.

 

  • Defined Depth. As more people enroll, they go under those first level distributors and down a set number of levels until the matrix is filled. If, for example, there were 3 first-level people, there could be 9 people on the second level, and 27 people on the third level, etc. The company promoting the products or services will determine how many levels deep they will pay commissions on in their specific MLM compensation plan.

 forced matrix

  • There is less emphasis on recruiting a large number of people. Limiting the number of frontline distributors causes some important features. Any distributors that you sponsor beyond your first line distributors must by nature be placed underneath others in the Matrix.

 

  • There is greater focus on helping your downline distributors become successful in retailing, recruiting, and retaining new enrollees.  

 

  • “Spillover” The placing of new distributors under others in the matrix when an upline sponsor of your places new recruits into your business organization is an exciting feature of Matrix Mlm Compensation Plans.

 

Advantages of Forced Matrix Plans

 

  • Matrix Compensation Plans are very attractive to part-timers and novice distributors. The low monthly volume requirements to qualify that often accompany these MLM compensation plans helps it to be a workable plan for both part-timers and the non-sales driven distributor.

 

  • Success is more within the reach of Novice and Part-Time distributors who are willing to do some work to achieve it.

 

  • Many find recruiting is easier with Forced Matrix Businesses. Many good forced matrix systems offer a low investment to start up and remain active. Consequently many more people are apt to sign-up quickly when offered the opportunity.

 

  • “Spillover” a feature of the Forced Matrix Plan, can be an attractive lure for novice distributors and part-timers.

 

  • Forced Matrix MLM Compensation Plans seem to work well in companies where most of the products are used and consumed by the distributors, rather than retailed to outside consumers.

 

  • Forced Matrix Compensation Plans by nature promote greater teamwork within an organization.

 

Disadvantages of Forced Matrix MLM Compensation Plans

 

  • Forced Matrix Plans and “spillover” often attract lazy MLM Distributors. You may have a bunch of people joining looking for the “easy road” expecting “spillover” to build their business and MLM income for them. This scenario is bad for both upline distributors really working their business, and lazy distributors expecting something substantial for little effort expended. It is a negative feature of this MLM Compensation plan.

 

  • The number of people required to completely fill a Forced Matrix Plan is huge! Many join with excitement realizing the incredible payout one of these matrix’s can provide when filled, but not really realizing the 1000’s of people required to fill even a simple 3×10 matrix.

 

  • The most money to be made in a MLM Forced Matrix compensation pay plan is in the deepest levels where the matrix is widest. Many frustrated distributors will drop out of the business without ever attaining the huge numbers of distributors necessary to reach this income potential.

 

How do Forced Matrix MLM Compensation Plans pay you?

 forced matrix

Companies pay distributors a certain percentage of the product sales for each person in their downline. If your downline has thousands of producing distributors that number can be amazing! However, if your team is only yourself and a handful of new recruits that check may be a very small one. If you’re a “lazy” distributor it can mean none at all.

 

In a hypothetical 3×7 Matrix, MLM compensation payment on your business organization would pay you to the 7th level and then stop because your matrix would be filled at that point. You get commissions on your seven levels and the sales volume your filled matrix produces and then your potential for income stops there. You don’t get paid on the eighth, ninth, tenth levels, etc.

 

This may be fine for the novice recruiter but not so great a pay off for the professional marketer capable of placing thousands, even tens of thousands of distributors in an organization.

 

Because of this many Forced Matrix Plans allow you to rejoin your organization at this point and begin building a new matrix with your new first level line of distributors starting directly underneath your first filled matrix. This is referred to as an Expandable Matrix.

 

If you’re a real go-getter you could conceivably re-join beneath your first matrix and fill another one all over again. And when that matrix fills you’d do it again, and again, and again, if allowed to by the company.

 

Smart companies who use Forced Matrix Mlm Compensation Plans have added incentives to help professional Mlm’ers earn income from the lower levels of their Mlm Matrix Plans. Matching bonuses, the addition of a Uni-Level plan after certain levels have been reached, and Expandable Matrix Plans are all examples of ways these companies have sought to compensate and attract the “Heavy Hitters” of the industry. You’ll need to consult your specific company MLM compensation plan for these details.

 

Aspects of Forced Matrix MLM Compensation plans that you may not be aware of:

 

As mentioned earlier Forced Matrix Mlm Compensation Plans allow for “spillover” to occur. Spillover occurs when someone not enrolled by you is placed in your downline. In a 3 x 5 forced matrix plan, you can only have 3 distributors on your frontline, and so the next distributors that you sponsor naturally “spill over” into the matrix under one of your frontline or further downline distributors. As more distributors are enrolled by your upline they naturally will be placed in the downlines of your team. This is often a large selling point of Forced Matrix Mlm Compensation Plans.

 

Your best bet to capture and capitalize on MLM compensation “spillover” is to join under a “heavy hitter.” They often sponsor huge numbers of distributors, which can spill into your organization and help to build it. Though this is definitely an excellent strategy to assist you in building your organization, it should never be counted on as your primary means to build an organization. Everyone frowns upon lazy distributorship.

 

To be a major beneficiary of “spillover” you have to be in the right place under an upline sponsor who is doing some mega recruiting. The chances for most people to experience this is slim. However, it can be a very helpful aspect for someone who is serious about building a large and successful organization.

Will a Forced Matrix Plan work for you?

 

2-5% of the distributors in any network marketing opportunity (the ones making the big money, building stable teams, and understanding what it really takes to win with an MLM compensation plan) will say network marketing is the greatest opportunity they were ever introduced to bar none! They are raking in the cash!

 

Of the 95% of others, reviews will be a mixed bag of excuses ranging from ‘I made a little money,” “it wasn’t for me,” to “it’s an outright scam and a pyramid scheme”. This is true of not only Forced Matrix MLM compensation Plans but also of the Network Marketing Industry as a whole.

 

The difference between win or lose, is in the training you receive, and in the person you are willing to become to succeed. Are you or are you not willing to become trained and informed to succeed in this industry? Are you ready to apply the knowledge and skills you learn on a daily basis? If you are not MLM is not for you…  Are you really ready to take your life and income to the next level? These are questions you should have answers to before joining not after.

 

That’s actually the reason I put this article together. I think Forced Matrix MLM compensation plans are a great opportunity for the right person. But I also understand that it takes a lot of marketing knowledge, proper training, discipline, and mentorship, for most people to earn a significant income from home. People need to hear the truth; they need answers not hype. They need mentorship and strategies that work. When these are put in place and put to work people get different results.

 

So I wanted to extend an offer to people who are both looking at Forced Matrix Mlm Compensation Plans and to those already involved with them. To those looking at Mlm and to those already involved ,to help you learn how to recruit people, and build a sustainable residual business income from home the right way using modern day MLM tools, technology, and strategies. The game has changed significantly yet too many old boys are still flogging a dead horse telling you he’ll still plow just fine for you if you’ll just believe and want it bad enough.

 

So what I’ve done is put together an incredible amount of cutting edge information that will teach you exactly how to succeed in Mlm, and it will work for you whether you’re involved with a Forced Matrix MLM compensation plan or any other reputable Mlm Pay Plan!

Sign up now to check out these awesome cutting edge tools, techniques, strategies, and the kind of  leadership that is producing staggering results in our industry in record time…

 

In Closing:

I hope this article about Forced Matrix MLM pay plans was informative and helpful for you and wish you the best in your business ventures and your life.

 

I’ve got some valuable bonus training I’m going to offer you today… as my way of testing you to see if you are serious about building Mlm Wealth or not. Click the following Bonus training link now for this very special offer.

 

This VIP Webinar Takes You Deep Into the Marketing Mind of a 7 Figure Income Earner and Gives You the Exact Ads He Used, Scripts He Spoke, and the Websites He Leveraged to Build a $1,000,000 Dollar Network Marketing Empire in Under 3 Years, and How You Can To Forced Matrix plan or not!

Bonus Link: Free Bonus

If you enjoyed this MLM Compensation Plan Article then check out the other Compensation plans on the “MLM Training” resource page.

You also might want to check out the “MLM Compensation Plan Basics” if this was too advanced

forced matrix

If you got value out of this article then spread the wealth, like it, share it, bookmark it, and get social. THANKS…

Binary MLM Compensation Plan Review

 

“Binary MLM Compensation Plan Review”

Binary MLM… Be sure and check out the Bonus Video that goes with this article by clicking the following link:

Binary MLM Compensation Plan Video

 

You can watch this video on YouTube at: Binary MLM

 

Binary MLM Compensation plans are complicated subjects for most to understand. Many would be marketers and even novice distributors have little depth in understanding them. Binary MLM plans, though they may be simpler than most to understand, are no exception to this rule.

It has become increasingly clear to me that a MLM compensation plan needs to be subject to the same evaluation process that any Mlm opportunity, its’ leadership, products, and marketing system go through before you make a decision about joining one. This is as true of a Binary MLM as it is of the other pay plans.

You are going to invest yourself, your time, energy, dreams, and resources into building a business. If distributors better understand the dynamics of the pay plan first, they will be better able to choose the right opportunity to invest their lives in. 

While the Binary MLM pay plan is clearly important, it is only one part of any MLM opportunity. It is your duty to look at the whole package, including but not limited to:  Pay Plan, Product, Automated Tools, Market Size, Leadership, Start-Up Costs, Mentorship, and your personal level of preparedness.

Do yourself a favor; seek out third party information, facts, and resources that deal with exactly what it is going to take to be successful in this industry first, before you make a decision about any company or MLM as a business opportunity including Binary MLM Compensation Plans.

You Might also like these Reviews:

UniLevel Plan
Stair-Step Breakaway Plan
Forced Matrix Plan
Binary Plan

Mlm compensation Plan Basics

With that being said, let’s now look deeper at Binary MLM  Compensation Plans.

Be sure and check out the Bonus Video that goes with this article by clicking the following link: Binary MLM Compensation Plan Video

Are Binary MLM Compensation Plans proven and sound?

 Binary MLM compensation plans have been around the last couple of decades. They have undergone improvement and revision during this time to improve payout plans for distributors as well as protect the companies from over paying distributors and thereby cutting short company lifespan.

Binary MLM pay plans may be relatively new to the network marketing industry as a whole, but it clearly hasn’t hurt their popularity any. They are popular among network marketing companies as well as with established members of the industry.

There are a number of advantages that makes Binary MLM plans attractive to all network marketers. This includes those new to the industry, part timers, experienced full timers, and heavy hitting big guns as well. Some consider Binary MLM to be the most exciting of the pay plans due to the lucrative payouts they can provide.

 

Are Binary MLM Plans a Pyramid Scheme?

  

Pyramid Schemes are illegal enterprises. Binary MLM plans may look like a pyramid when they are filled up, but the similarity ends right there.

 You see, the Binary MLM pay plan is not set up to be a recruiting game where people are only joining the Binary MLM are doing it for the opportunity to make a lucrative payout. The people joining a Binary Mlm pay plan must be joining to market a legitimate product or service to the market and not for the purpose of recruiting for payment. As defined above that would be a pyramid scheme and that’s strictly illegal.

An easy way to spot a pyramid scheme is there is no legitimate product or service for sale. Another clue is there is no payout unless you successfully recruit a specific number of people into the pyramid. You’re paid on enrollee’s and generally there is no selling or marketing of products or services to receive payment.

This isn’t the case with Binary MLM pay plans and the companies that use them…

  

Advantages of Binary MLM Compensation Plans

  • Binary MLM plans are about the most exciting of all MLM pay plans because of huge potential payouts they offer.
  • Most Binary MLM’s pay weekly or bi-weekly, whereas most other MLM compensation plans pay commissions only once a month. This helps new recruits get into money fast and helps foster a sense of immediate rewards for efforts expended.

 

  •  Binary MLM downlines pay to infinity. This means that you will benefit from a strong producer, even if they are 12 levels deep in your organization.

 

  •  Binary MLM Plans offer the greatest potential generational earnings depth of any of the four basic compensation plans in network marketing.

 

  •   Binary MLM Compensation plans are great for fostering teamwork in an organization. It is beneficial for your upline to assist your success, there success benefits you, and your downlines success benefits everyone. This tends to build team unity and cooperative energy.

 

  • You really only need to concentrate on building one leg of your business- your “Money Leg”. The other leg of your downlines matrix or “Power Leg” is usually being built by those in your organization that are above you, and more experienced than you.

 

  • Your power leg will usually grow faster than you can possibly keep up with. With a binary compensation model, your up-line will place their new members under you into what’s called your powerleg. This is referred to as spillover.

 

  • The initial Binary MLM Compensation Plan is much easier to understand and maintain qualifications for than other plans created before its’ inception.

 

  • Binary MLM plans do an excellent job compensating mid-range commission earners. It does not do as well on low end commissions or very high end commissions

 

  • Binary Mlm Compensation Plans help the average and even less than average network marketer to be able to achieve success, and realize the potential for  financial freedom.

 

Disadvantages of Binary Mlm Compensation Plans.

  • Binary MLM pay plans may require more work on your part. But it doesn’t mean they are any less lucrative for those who work them correctly.

 

  • This type of Mlm plan is a balancing act. Most companies that use binary pay plans pay only on the weaker leg (money leg) in your downlines and the matching volume from your power leg. Large sales volume may be flowing through your power leg but you only capitalize on the balanced amount flowing through your money leg. You get paid a commission on the matching amount of volume; this can leave a lot of money on the table.

 

  • Pitfalls of Placement: You will need to understand how many people you must personally add to your legs for extra bonuses, and understand the importance of placement within these legs to avoid making mistakes that could cost you potential money made.

 

  • Binary MLM pay plans have upper limit payout caps. Most Binary MLM’s have a maximum upper limit on earnings called a payout cap (more about this later). Each business center has a limited earning potential which maxes out to ensure that both distributors and the company earn a profit. Some distributors don’t realize this. However, Binaries may be combined with other commission payment types, earning bonuses, and multiple business center options to alleviate the capped earnings problem.

What you need to know about Binary MLM Plans to make them work? 

Basic Concept:

Binary Mlm Compensation plans are built upon the simple principle of 2. You have 2 groups of people called “legs”. As you enroll new distributors into your business you place these new enrollee’s into either your left leg or your right leg (power leg or money leg). The length of each leg is usually unlimited as payout depth for these legs is theoretically to infinity. 

The Power Leg:

The legs in your business are given names, and each play in important yet differing role in your business organization. One of your legs is your power leg where your sponsor added you to the matrix. It is also where your upline will continue adding people below throughout the life of your business. This “Power Leg” grows fastest, (usually faster than most distributors can keep up with.

The Money Leg:

Your “Money leg” is the leg you are 100% responsible for building and maintaining. It essentially decides what you are eligible to be paid for.

With most plans you get a bonus for adding a balanced group of people (6-12-24-50 etc.) to your sales organization. Your upline is already helping you build one outside leg, but it is filling in the inside area and adding to your outside leg where the money is made.

That’s why this other leg in your organization is referred to as your “Money Leg”. This is the leg of your business where you will add new people and start making money.

Aspects of Binary MLM Compensation plans that you may not be aware of.

THE Most Powerful Incentive That Companies Use to Get People Involved In And Excited About Their Company Is… They Over Promote the “Spillover” Aspect of the Binary MLM Pay Plan. 

The Most Hidden and Overlooked Aspect of Binary MLM Pay Plans is That Spillover Only Occurs into Powerlegs and Nowhere Else. 

So what does that mean? 

It means that because your upline shares a leg with you in their organization, you automatically get their new enrollee’s placed beneath you in your organizations powerleg. This occurs because all the positions above you are already filled in.  Essentially there is nowhere else to place them.

Now, let’s say in this example that you share your left leg (powerleg) with one of the heavy hitting top dogs in your organization and their team. Your other leg (money leg) makes up the right side of your organization and is made up of you the people you enroll. In other words, the right leg and inside positions are built and filled by you and the organization your team is building.

The left leg of your business “power leg” grows like mad due to the efforts of the super team of distributors above you and their efforts. Tremendous sales volume and numbers of new recruits fill this leg of your business and it is exciting watching it grow and develop every day. Some serious bank is flowing up this side of the matrix.

So what’s the problem you may say? Isn’t that a good thing you ask? Yes it’s great if you can keep up. But remember you are responsible for building the other “money leg” of your business.

You get paid off the balanced ratio between the two legs, whether it’s half or third balancing (more about this later). You still have to balance the two sides in ratio to get paid and begin capitalizing on all that flowing sales volume moving up the powerleg of your business.

You can’t join, sit back, relax and expect the big buck checks to come rolling in just because your binary MLM pay plan has ‘spillover’. You have to work the plan, get people to join with you, place them on the appropriate side of your business organization, and get them recruiting, duplicating, and generating sales volume.

Sounds like work I know, but that’s the real name of the game when it comes to succeeding in a Binary MLM Plan. Don’t be convinced otherwise.

The basic concepts of Binary MLM Compensation Plans include:

  • Distributor’s sponsor two peoples into their organizations creating two downline legs, a money leg and a power leg, and then sequentially build their downlines under those two legs.
  • Some BinaryMLM plans allow distributors to have multiple business centers—usually three, or seven. 
  • Most Binary MLM pay plans pay their downline commissions once a week.
  • Distributors have to generate downline sales volume that is balanced between the two downline legs. Payment is received for the matching sales volume of the weaker sales leg. When a distributor reaches a specific level of balanced sales volume, they receive a commission check.

 

  • Multiple Center Concepts: a concept that allows distributors to have more than one position in the downline tree. There are usually two ways this may be a distributors business incorporated into a Binary pay plan.
  1. Once a business has filled its original allotted matrix they are allowed to add a new business center within that tree and build another downline matrix from the newly created center.
  2. All business centers are created at the time of sponsorship and all subsequent enrollees are placed under these multiple business centers.

 

How do Binary MLM Plans pay you?

50/50 Balanced Payout Plan

50/50 plans are just like the sound. The premise is based on equal share balanced between the two legs of your business that has to occur before payout. For example six on the left and six on the right and the matching balanced business volume that accompanies them. If there is 1500 in business volume in your “Money Leg” and 4500 in business volume being generated by your “Power Leg” you get paid on the balanced volume of the weaker money leg or 1500 in this example.  

1/3 – 2/3 Balanced Payout Plan

Other binary MLM pay plans require a one-third / two-thirds split between legs. When one side, left- or right-side, has one-third of the distributors and the other side has the other two-thirds then payout occurs. A one third two third balance has occurred. When Binary has four people on one side and eight people on the other side for a total of twelve people, then payout occurs.

Other Occurring Payments:

Another interesting way that Binary MLM pay plans pay is the payout that occurs on the organization you build. Some Binary plans will pay a commission each and every time a person’s organization grows by a set balanced number.

In this hypothetical example if you get 50 new distributors balanced in your organization you qualify for payout on whatever the 50 person payout money is. Ka-Ching! You get paid this bonus money each and every time this 50 person increase happens. Ka-Ching, ka-ching.

However some Binary MLM compensation plans don’t allow one to carry over recruiting numbers into the next month (there’s no recruiting spillover). Essentially, you just have to start over building new groups of 50 the following month if you didn’t qualify during the current period.

People joining Binary MLM businesses with these type of payout plan options see themselves getting that group of 50, or 36, or whatever number over and over and over again.  Ka-ching, ka-ching, and then they see the big numbers of payout really beginning to add up. Ka-Ching! Ka-Ching! Ka-Ching! They see it happening every month, every week, and it’s like gold fever.

The reality though is it’s harder than it appears. That kind of success is possible and it does happen for some. But not for the average or even above average distributor that comes into Mlm. Most people arrive green in this industry don’t have the skill sets, resources, tools, training, and connections necessary to put up those kinds of numbers.

Remember:

  • Binary MLM Compensation Plans pay on the balance between the two legs of your business organization.

 

  • A person does not get paid on the total of all downline sales. Instead they receive a commission on the balanced sales volume of their weakest leg.

 

 

  • Binary MLM Plans may pay a bonus amount each and every time your business grows a pre-set number of new enrollees per pay period.

 

  • With Binary MLM plans it’s not depth that counts but balance of numbers and sales volume between the legs of your business.

 

Will a Binary MLM Compensation Plans work for you? 

The answer to that question can only be found within you. That answer can only come through careful and thoughtful consideration of yourself, your skills, your attitudes, and your commitment to learn and implement the strategies, tools, and knowledge required to succeed in this exciting industry. Remember that a Binary business structure is not a sit back and let others do the work for you and you’ll get rich business plan. It is quite the opposite.

Mlm is a business. The opportunity should be treated as such, and run in accord with this principle. With that being said, it is also one of the most rewarding and potentially lucrative endeavors you will ever engage in. Proper training education, tools, and a plan for success are essential though.

Insure that you become a success and not another statistic by investing in your self, and in your knowledge about this industry, and what it takes to succeed. Have a plan in place and the resources necessary for your success at hand before you begin, and you’ll be a lot further than most that blindly enter this industry hoping for success.

In Closing:

I hope this article about Binary MLM pay plans was helpful answering in answering the questions you may have had. You are now better equipped to decide whether a Binary compensation will work for you.

2-5% of the distributors in any network marketing opportunity (the ones making the big money, building stable teams, and understanding what it really takes and applying it) will say network marketing is the greatest opportunity they were ever introduced to bar none! They are raking in the cash!

Of the 95% of others, reviews will be a mixed bag of excuses ranging from ‘I made a little money,” “it wasn’t for me,” to “it’s an outright scam and a pyramid scheme”. This is true of not only Binary MLM Compensation Plans but also of the Network Marketing Industry as a whole.

The difference between win or lose, is in the tools, systems and training you receive, and in the person you are willing to become to succeed. Are you, or are you not, willing to become trained and informed to succeed in this industry? Are you ready to apply the knowledge and skills you learn on a daily basis? If not Mlm probably isn’t for you… Are you really ready to take your life business and income to the next level? These are questions you should have answers to before joining an opportunity or considering Mlm, not after.

That’s actually the reason I put this article together. Binary plans are a great opportunity for the right person. But I also understand that it takes a lot of marketing knowledge, proper training, discipline, and mentorship, for most people to earn a significant income from home. People need to hear the truth; they need answers not hype. They need mentorship and strategies that work.

So I wanted to extend an opportunity to people who are both looking at Binary MLM Plans and to those already involved with them. To those looking at Mlm and to those already involved, and help you learn how to recruit people, build a business, and create a sustainable residual business income from home using modern day MLM tools and strategies. The game has changed significantly, yet too many old boys are still flogging a dead horse telling you he’ll still plow just fine for you if you’ll just believe and want it bad enough.

So what I’ve done is put together an incredible amount of cutting edge information, tools, training, and resources that will teach you exactly how to succeed in Mlm, and it will work for you whether you’re involved with a Matrix plan, Binary MLM, Stairstep Breakaway MLM, Unileve MLMl, or any other reputable Mlm Pay Plan. You need to come check me out and sign up for some free training today.

I’ve got some valuable bonus training I’m going to offer you today… as my way of testing you to see if you are really  serious about building Mlm Wealth or not. Click the following Bonus training link now for this very special offer.

This VIP Webinar Takes You Deep Into the Marketing Mind of a 7 Figure Income Earner and Gives You the Exact Ads He Used, Scripts He Spoke, and the Websites He Leveraged to Build a $1,000,000 Dollar Network Marketing Empire in Under 3 Years, and How You Can To Binary MLM Compensation Plan or not!

Bonus Link: Free Bonus

You Might also like these Reviews:

UniLevel Plan
Stair-Step Breakaway Plan
Forced Matrix Plan
Binary Plan

Mlm compensation Plan Basics

Additional Recommended Binary Review:

Article by Rob Fore:

MLM Binary Compensation Plans

Stairstep Breakaway Mlm Compensation Plan Review

Stairstep BreakawayPlan Review

Do yourself a favor; you need to seek out third party information, facts, and resources that deal with exactly what it is going to take to be successful in this industry first, before you make a decision about any company or an investment in any business opportunity or Stairstep Breakaway Plan.

Be Sure and check out the Bonus Video that goes with this article by clicking the following link: Stairstep Breakaway Video 

So… you are going to invest yourself, your time, energy, dreams, and resources into building a business. If as new distributors you better understand the dynamics of the pay plan you will be considering, then you’ll be better able to choose the right opportunity and business to invest your lives in. 

It has become increasingly clear to me that Mlm Compensation Plans should be subjected to the same evaluation process that any Mlm opportunity, its leadership, products, and marketing system go through before you make a decision about joining.

While the pay plan is clearly important, it is only one part of any MLM opportunity. It is your duty to look at the whole package, including but not limited to:  Pay Plan, Products, Automated Tools, Market Size, Leadership, Start-Up Costs, Mentorship, and your personal level of Skill and Preparedness.

 

Are Stairstep Breakaway Plans proven and sound?

Variations of the ”Stair Step” have been used for over fifty years. This was the original compensation plan that started it all and is still being used today. Without a doubt the Stairstep breakaway plan remains the most tried-and-true type of plan out there and with the success of mega-superstar companies like Amway, they are most likely to survive in the decades to come.

The Stairstep Breakaway may well be the best known and demonstrated of the five basic compensation plans. It was declared legal because of Amway fighting a great legal battle for it, as a result it got copied more and more in the industry through the years. Like all good surviving plans in the industry it has undergone advancement and evolution throughout its career to become one of the most tried and true plans out there to date.

However, just like all compensation structures there are some advantages to this compensation structure, and there are also a number of disadvantages. Its’ longevity does not necessarily make it the one size fits all solution for every marketer out there.

 

Are Stairstep Breakaway Plans a Pyramid Scheme?

Pyramid Schemes are illegal enterprises. Some Mlm Pay Structures may look like a pyramid when they are filled up, but with legitimate pay plans the similarity ends right there.

You see, the Stairstep Breakaway plan is not set up to be a recruiting game where people are only joining for the opportunity to make a lucrative payout. The people joining a Mlm pay plan have to be joining not for the reason to just make money by recruiting distributors into their group. That would be a pyramid scheme and that’s strictly illegal.

An easy way to spot a pyramid scheme is there is no legitimate product or service for sale. Another clue is there is no payout unless you successfully recruit a number of people into the pyramid. You’re paid on enrollee’s and generally there is no selling or marketing of any products or services necessary to receive payment.

 

The basic concepts of Stairstep BreakawayPlans include:

  • In a Stairstep Breakaway Plan, distributors climb the ladder of success (or steps) and when they reach a certain level of accomplishment, they are allowed to break away from their main upline and run their organization independently. The original upline sponsor receives a percentage override on the sales of the entire breakaway, but it will be significantly reduced.

 

  • As distributors break away from their upline it allows them to earn progressively greater commissions.

 

  • Each distributor is allowed to sponsor one level of “frontline” distributors and limited depth (levels) depending upon the amount the company can afford to pay out. There is no limit to the width (number of frontline distributors) you can sponsor and receive commissions on.

 

Advantages of Stairstep Breakaway Plans

  • One advantage of the Stairstep Breakaway Plan is you can build as wide as you want for your front line of distributors. You could build your team with each of these distributors or find one “Rock Star” marketer in the group, and focus your attention on them and build a large organization together.

 

  • This plan is now well known and it is widely accepted by regulation agencies. There is no doubt as to the legitimacy of this pay plan.

 

  • Stair Step Breakaway Plans work well for experienced distributors that have good selling, recruiting, and management skills.

 

  • This compensation plan though more suited to full timers, becomes an option for more part-time and novice distributors with recent advancements in the industry. Internet marketing in particular, can dramatically level the playing field and make it just as friendly for dedicated part-time distributors.

 

Disadvantages of Stairstep Breakaway Plans

  • The Stair Step Breakaway Plan is hard for many to understand, and it’s even harder to try and explain it to prospects. This makes selling the pay plan portion of your business difficult from the start at a time when you need new sales the most.

 

  • Sometimes there is an unreasonably high ongoing monthly personal purchase (PV Requirement) to qualify for the maximum commission payments. This can be difficult for many new distributors to absorb as they try to move their business into profit. Attrition rates can be high as a result.

 

  • The plan can be hard to market. A tried and true 50-year-old plan isn’t a sexy sell. It may be difficult to seem appealing to new distributors looking for the next bigger better deal.

 

  • The Stairstep Breakaway plan is considered by many to be a pretty unfair plan that puts strong incentives toward full time big gun network marketers at the expense of part time and novice recruiters. This plan has been responsible for creating HUGE incomes for successful full time distributors. However, it can be a very brutal plan to make money with for the part-timer. 

 

  • Another problem with the Breakaway plan is exactly that. It’s a Breakaway Plan! Your strong legs reach the necessary step requirements and they “Breakaway.” You lose their volume after working so hard to help build and develop them. This can be a significant portion of volume or in the worst cases it can be the complete volume of that leg. Ouch!

 

  • The Breakaway feature of the plan offers limited incentive for teamwork within an organization. Competition and isolation between distributors can be the result.

 

  • Finally, the stairstep breakaway plan has a bad reputation for encouraging distributors to buy a large amount of product (inventory loading) every month often creating a stock of products they may be unable to completely use or retail.

 

 

 

What you need to know about Stairstep MLM Compensation Plans to make them work?

This plan as we have mentioned is best suited to those distributors who are confident in their ability recruit new distributors and who have excellent, marketing, management, and leadership skills. For those looking at this compensation plan for the first time, one thing to consider is this; while the potential commissions can be very rewarding with this compensation plan, do you have, or are you willing to attain the time and skills necessary to become successful with this type of commission structure?

All the more with this type of plan you should seek out third party information, tools, strategies, systems, and mentorship to be sure you are positioning yourself for success in the industry. You don’t want to just follow the advice of some old boy that’s still flogging a dead horse telling you he’ll plow fine for you to if you’ll just believe.

 

Aspects of Stairstep MLM Compensation plans you may not be aware of.

 

The Breakaway 

Breaking away from your upline is beneficial for you. You’ll earn a higher commission rate as a result. However, it can have a serious negative impact for your upline. You know, the ones that just lost you. They can still earn commissions from you, and on your volume, but it no longer flows through your to your upline at the same rate. The new reduced commission your upline receives is called an “over ride commission.” Your upline essentially just lost some of their best customers.

Each breakaway organization is referred to as a generation and although distributors are entitled to earn an override commission on all of their breakaway generations, this override commission as we mentioned, is only a small fraction of what it was.

This aspect of the breakaway plan seems fine for the distributor at first but then as they help to build their teams some of their best distributors and downline members begin qualifying for breakaway status and leave their organizations.

So at first you may be thinking “okay that’s fine I’ll still get some override commission right?” However, you’ll need to maintain a certain level (often quite large) of “open volume” (this is sales volume outside of the volume the breakaway business is creating.) just to qualify for the override commissions.

What’s really frustrating is when the “Rock Star” distributor you helped groom and develop, the one who’s helped explode your business, now breaks off from you. They’re still rockin and building a very large business but now you can’t maintain a large enough amount of open or new business to keep up. So what can happen is you become unqualified for the override commission. The breakaway volume from the rockstars team is now gone… Ouch!!

This can lead to distributors stockpiling product in order to qualify for their override commissions. It’s a frustrating and heart-wrenching situation. Some of the top MLM companies have recognized this and adjusted their compensation plans to help this problem, but the distributor still feels they are leaving money on the table because, inreality, they are!

Unfortunately some companies who’ve used the Stair Step Breakaway in the past helped to give the industry a bad name. Some companies set their group sales volume targets so high that new distributors were encouraged to purchase large amounts of product beyond an amount an average distributor could use or retail.

This practice certainly assisted their upline to earn commissions, but it left a lot of distributors disgruntled and stuck with stock they could not sell. I’m sure everyone’s heard the horror stories of poor uncle Ned who got involved with one of those schemes and got left broke with a garage full of useless products and an ill-tempered attitude toward network marketing. Fortunately, to our knowledge, this rarely happens today. If it does, we suggest you try a new strategy before you get in to deep.

 

How do Stairstep Breakaway Plans pay you?

There are always at least two parts to a Stair Step Plan

The ”front half” or “front end” is the sales plan.  Compensation rises at each different level (step), with the highest compensation at the top step. The goal is to reach the top of the stair step by meeting the different qualifications necessary.  Some qualifications are fulfilled by personal (retailing) sales; others by group sales, others are personal sponsoring requirements, and group sponsoring requirements, while some require all of the above to progress up the ladder of success.

 Each of the steps has different names and requirements and their titles demonstrate a person has reached a certain level of qualification and achievement. 

The following is a hypothetical example of basic Stair Step Plan. Remember there are many variations on this theme.

Step One: A distributor reaches the (first step) when her/his group reaches a certain benchmark of volume sales. Let’s say $300.  She/he then earns a set percentage commission on the sales, let’s say 5% on the amount personally purchased, and on the distributor sales/purchases in the sales team legs that have not reached the $300 bench mark yet. A little confusing yes I know… Bear with me.

Step Two: When the group reaches the $600 level per month in sales, she/he attains the next step, the associated title, and earns 10% on personal volume sold and on all those in the team who have not reached $300 yet. You also earn 5% on those that have reached the $300 sales benchmark, but have not yet attained the $600 level.  

 As $1200 in volume is reached, you attain the next level/step and now receive 15% on personal sales volume, and all those who have not reached $300 yet. You’ll also earn 10% on those that have reached $300, but not yet attained the $600 sales level, and 5% on those that have reached $600, but not yet reached $1200. This program continues until one reaches the top step/level/title let’s say 25% and $5000. I told you it could be hard to explain and understand for both new distributors and prospects.

2.  The second half, the back half (back end), or break-a-way, is the managing half of the Stair Step Breakaway Plan.  Here is where one gets paid based on their management and training abilities, plus their sales volume consistency.

In this second half of the plan, distributors continue to be paid on the front end of the plan as before, but they are also being paid a percentage commission on the sales volume of legs in their organization who have reached the same top bonus level and have broke-a-way, taking their organization with them. This commission payment only occurs of course if you meet the open volume requirements described earlier in this article. 

The back half of the plan is where a person who works for it can achieve stability and financial independence with a residual income. When a break a way occurs, a percentage is earned on the break a ways group volume. As we have mentioned that percentage is less than before the leg broke away, but can still be a significant pay off. If there are enough of these break off legs in your organization and/or they are of sufficient volume generating size, then these organizations take on a life of their own and provide you with a consistent source of stable and residual income for years to come.

 
Remember that there are many variations on this basic generalization. Stair Step Breakaway Plans are easily modifiable and there be a number of aspects of the plan that may require your consideration. Compression plays a big part in Stair Step programs and there are several different definitions for compression. Qualifications vary, as do percentages of commissions paid out at different levels. Other bonuses and incentives may be included in the basic plan that will have varying effects on determining whether it is a suitable plan for you or not.

 

Will a Stairstep Breakaway Mlm Compensation Plans work for you?

 

2-5% of the distributors in any network marketing opportunity (the ones making the big money, building stable teams, and understanding what it really takes and applying it) will say network marketing is the greatest opportunity they were ever introduced to bar none!

Of the 95% of others, reviews will be a mixed bag ranging from ‘I made a little money,” “it wasn’t for me,” to “it’s an outright scam and a pyramid scheme”. This is true of not only Stairstep Breakaway Plans but also of the Network Marketing Industry as a whole.

The difference between win or lose, is in the tools and training you receive, and in the person you are willing to become to succeed. Are you or are you not willing to become trained and informed to succeed in this industry? If you’re not…. forget about Mlm as an option.  Are you ready to apply the knowledge and skills you learn on a daily basis? Are you really ready to take your life and income to the next level? These are questions you should have answers to before joining not after.

That’s actually the reason I put this article together. Matrix plans are a great opportunity for the right person. But I also understand that it takes a lot of marketing knowledge, proper training, discipline, and mentorship, for most people to earn a significant income from home. People need to hear the truth; they need answers not hype. They need mentorship and strategies that work.

So I making an offer to people who are both looking at Stairstep Breakaway Plans and to those already involved with them. To those looking at Mlm and to those already involved, and I will show you how to recruit people and build a sustainable residual business income from home using modern day MLM tools and strategies. The game has changed significantly yet too many old boys are still flogging a dead horse telling you he’ll still plow just fine for you if you’ll just believe and want it bad enough.

So what I’ve done is put together an incredible amount of cutting edge information that will teach you exactly how to succeed in Mlm, and it will work for you whether you’re involved with a Matrix plan, Binary, Stairstep Breakaway, or any other proven Mlm Pay Plan! But you need to sign up right now to check out these awesome cutting edge tools, techniques, strategies, and the leadership that is producing breakthrough results in record time in this exciting industry….

In Closing:

I’ve got some valuable bonus training I’m sending you to  today… as my way of testing you to see if you are really serious about building Mlm Wealth or not. Click the following Bonus training link now for this very special offer.

This VIP Webinar Takes You Deep Into the Marketing Mind of a 7 Figure Income Earner and Gives You the Exact Ads He Used, Scripts He Spoke, and the Websites He Leveraged to Build a $1,000,000 Dollar Network Marketing Empire in Under 3 Years, and How You Can To Stairstep Breakaway Plan or not!

Bonus Link: Free Bonus

Mlm Pay Plans Review Articles/Videos

I wanted everyone to know that all five parts of the Mlm Pay Plans Review series of articles and videos is now complete and can be accessed from the following web links:
The 4 basic Mlm Pay Plans structures and links to each article/video include:

UniLevel Plan
Stair-Step Breakaway Plan
Forced Matrix Plan
Binary Plan

Mlm compensation Plan Basics

This is perfect for people new to the industry thinking about any of the various mlm opportunities and MLM Pay Plans out there. It is also a third party resource for you to send prospects to and share valuable content with them, or for developing your own knowldedge and expertise on the subject.

If you are struggling in your Mlm Business sign up today for some invaluable training and resources today. If you are new to Mlm and just starting out get started right by learning from the pro’s what it really takes to succeed in this industry. Get yourself plugged into tools, training, systems, and leadership that industry leaders use to build there businesses.  Sign up today for free training today and be sure to review all of the MLM Pay Plans Reviews.

Mlm Compensation Plan Basics

 

Understanding the Basics of Mlm Compensation Plans 

Be Sure and Check Out the Bonus Video and Training That Accompany This Video At the Following Link:

Bonus Video and Training

You Can also view this Video on YouTube at: MLM Compensation Plan Basics

Mlm Compensation plans are often difficult for new and aspiring marketers to understand, and yet they are ultimately the way in which you get paid in a network marketing business. It can be difficult for prospects new to the industry to understand both the jargon and the concepts presented in even the simplest pay plan. However, it is important that you understand how they work, to determine weather or not a specific pay plan is suitable for your goals and skill level in the industry.

In this article I’ll teach you the basics of MLM compensation plans and also provide links to other articles evaluating the 4 basic compensation types. These articles will help you evaluate the benefits and limitations of each of the common pay plan structures and help you to identify the best compensation plan for your goals and skill level. The links will take you to detailed explanations of each MLM compensation plan, but it is suggested if you are new to the industry that you first start here and grasp the basics first.

The 4 basic Mlm Compensation Plan structures include:

 

Basic concepts and jargon commonly used by people in the network marketing industry:

Sponsor:A sponsor is the person who first introduced you to and signed you up with their network marketing company. They are the person responsible for making sure that you receive adequate training and support. They are there to help you succeed.

Distributor or Associate:You become a distributor when you join a network marketing company. You become bound by the terms and conditions agreed upon to distribute and sell products or services the company offers as an independent contractor or business owner. Some companies may refer to their distributors as associates.

Business Center:  Your new position when you join a network marketing company is considered to be a new business center. This provides you a position in the companies pay plan from which you may then begin to build your own sales organization or team. The organization refers to both yourself and all the members (distributors) that you and your team sponsor. Having a business center entitles you to receive compensation in the form of commission on the sales volume you and your team sell as an organization. The more sales your organization does the more you get paid.

Upline: Your Upline refers to all the individual distributors sponsored directly above you in the pay plan structure. They were sponsored into the business before you generation by generation in a related chain much like a family tree diagram.

Downline: Includes all the individuals you have personally brought into the business and the new distributors they bring into the business much like your own family tree grows and expands as you have children of your own and they in turn produce their own offspring.  This offspring that has joined your organization are all positioned below you in the compensation structure and are thus considered to be downline from you in the pay plan.

Width and Depth: Width and Depth refer to the dimensional proportions of particular pay plans. Dimensional proportions and structures among pay plans vary by type and design.

Width:refers to the maximum number of distributors that you can have placed immediately under you in the compensation plan structure, and how wide this is allowed to grow. The first line of distributors directly sponsored by you is commonly referred to as your “frontline”.

Depth: refers to the number of levels deep dimensionally in which you can earn a commission from your organization. Naturally there is only so many times in which you can split a dollar, therefore a commission based on the work of the distributors in your downline can only go so deep, though some plans claim payout to infinity.

For example, in a typical forced matrix structure the width and depth of the plan is stated numerically as (width x depth). The diagram below shows a 3×2 plan. This plan has a width of 3 distributors and is 2 levels deep.

  

Level:Level refers to the position of a distributor in a downline relative to an upline distributor. Frontline distributors who are positioned directly below you are referred to as your 1st level distributors. Distributors next below your frontline distributors would be 2nd level distributors, below them 3rd level, etc. etc.

Crossline:refers to distributors who work for the same Mlm Company, but whose efforts do not influence each others commissions. They are a portion of your business center but not of each others business centers, or sales teams. All distributors on the same level of your business center would be cross line from one another. Their individual efforts and their team efforts benefit you directly, but have no monetary impact on each others businesses. They are said to be crossline from each other.

Legs: Every 1ST level or frontline distributor in your organization is the beginning of a new leg in your business. For example, in a 3×2 matrix you would have 3 frontline distributors or 3 legs (2 outside legs and a middle leg) in your business. Unilevel plans can go as wide as you like with frontline distributors so you could have as many legs as you sponsor wide. In a simple Binary plan the focus is on two frontline distributors or two legs in your business center.

 

Point Value: For every product sold in network marketing, a predetermined amount of points (PV) is associated with the product being sold. Your commission payments are determined by the volume of points that flow through your organization (total volume) during a set period of time.

Higher priced products usually offer a higher point value as a reward, but this is not always the case. Flagship products or products the company is trying to push may generate higher piont values as an incentive for distributors to sell more of that particular product.

Not only that but every company and MLM compensation plan likes to calculate total volume in a slightly different way. This gets confusing I know. The following are some of the common factors a company pay plan may use in determining total volume.

Group Volume: The total amount of points you and your whole sales organization/ business center has accumulated during a pay period.

Leg Volume: The specific volume of points in each leg of your business that has accumulated during a pay period. Payouts can occur when there is a specific ratio of balance between volumes in each leg in certain plans. Example would be payout occurring when a 1/3 2/3 balance ratio is achieved. Confusing I know don’t worry about it just be aware of the concept for now.

Level Volume:  Is the amount of points generated by each level, or specific levels of your business organization during a pay period.

Carry Over Volume: is volume from a previous pay period that was earned but that was not qualified (for whatever reason) to receive payment on. Usually a balanced ratio for payment was not achieved. This amount is sometimes lost but often it is moved to the next pay period where you may add to it and qualify for commission payment on the volume. Carry over volume basically allows any unpaid points to carry over to the following pay period so that you don’t lose any commission.

Variable Level Commission Rate: Stair-Step Breakaways, UniLevels and the Forced Matrix Plans normally offer a variable commission rate for each level of distributors within your organization. These rates vary by program and company but they tend to follow the following hypothetical outline. In these types of programs differing commission rates apply to the volume generated by different levels in your downline. For example, for your level one frontline distributors you might earn 20% on the PV sold by this group. But on your second level deep you would earn a differing commission rate, let’s say 10%. The third level may then begin to reward you for building deep and pay 15% for volume generated by this group of distributors.

 

Some commission breakdowns offer a consistent commission rate (featured on the right) where you earn the same commission rate for each level. For example, a 10% commission from all 3 levels may apply. It’s important to visualize the payment structure of a particular plan in regards to your abilities and goals as a marketer, and evaluate weather the two are compatible. Plans that favor higher commission rates at the early levels of the plan favor novice distributors, part-timers, and those without the resources to build deep. A heavy hitter, who is competent recruiting large numbers and building deep, will appreciate higher commissions deeper in the pay structure. It’s largely a matter of preference and ability as one size may not fit the desires of everyone.

Rank and Advancements: Network marketing businesses use ranking systems to distinguish accomplishment levels achieved by distributors in the organization. As your organization grows and you pass certain benchmarks of achievement in the company your rank titles climb the ladder of achievement. These titles are generally assigned to distinguish your achievements and earn recognition from your peers, but in some cases there may be bonuses, or privileges associated with rank as well.

The following are some of the common rank achievements

                                  Bronze Director

                                  Silver Director

                                  Gold Director

                                   Ruby Director

                                   Emerald Director

                                   Diamond Director

Bonuses: Bonuses have become a part of many companies’ MLM compensation plans. Car programs, cruises, vacations, pay bonuses, etc. It is important to understand that normally these bonuses only come to those who achieve a certain level of success, and is a way to recognize and reward those achieving success in an organization.

Compensation Plan Differences: Each company’s compensation plan is different to some degree. The biggest differences are between the 4 main compensation type structures, but even among structures of the same type, they may vary. The biggest differences are in how commission payments occur, bonuses, and specific qualifying features of the plans. Terminology may vary some as well, usually with regard to rank designations or specific titles for features of the plan, but the information above will give you a good basis for understanding the terms and functions of Mlm compensation plans regardless.

 So what’s the best plan then?

Every marketer’s abilities and goals vary greatly. Plans are like personalities, some are better suited than others for a particular person, their experience level, skills, and situation. So trying to recommend a one size fits all solution is an unrealistic proposition.

You should do your homework on any particular plan you may be considering, and you should take some time to assess your goals and abilities first. You should seek out third party information about exactly what it is going to take to be successful in this industry before you join any specific opportunity or Mlm as an industry.

That’s actually the reason I put this article together. I think all the Mlm plans are a great opportunity for the right person. But I also understand that it takes a lot of marketing knowledge, proper training, discipline, and mentorship, for most people to earn a significant income from home. People need to hear the truth; they need answers not hype. They need mentorship and strategies that work.

So I wanted to reach out to people who are both looking at Mlm and to those already involved, and help you learn how to build your business, and create a sustainable residual income from home using modern day MLM tools, marketing systems, and strategies that work.

So what I’ve done is put together an incredible amount of cutting edge information, tools, training, and resources that will teach you exactly how to succeed in Mlm, and it will work for you whether you’re involved with a Matrix plan, Binary, Stairstep Breakaway, or any other reputable Mlm compensation Plan. Come check me out on my blog at www.daveschlueteronline.com and sign up for some free training.

I hope this article was helpful to you and that you will continue on to learn more about the fantastic opportunities that await you in this exciting industry. If you’d like a chance to work with me directly or get additional training come check me out at: www.workwithdaveschlueter.com

Be sure and check out the Bonus Video that goes with this article by clicking the following link: 

Bonus MLM Compensation Plan Video

 

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