MLM Compensation Plans

Finding the Best MLM Opportunities

Most people, when searching for the Best

MLM Opportunities, look at products and

company but fail to examine the MLM

compensation Plans. Bottom line is, the

compensation plan will always drive the

behavior in the field. If that behavior is

recruit till you drop, you may want to look

elsewhere. If the Compensation Plan drives

the behavior of retailing products, then you

may be onto something.

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The Binary Plan:

Binary MLM compensation Plans are any plan that has

only two legs. In a binary system, your two front line

positions are Gold because your two legs have to remain

balanced. If one is longer than the other, you will only get

paid down through the lowest level of the short leg. Also,

most bonuses are only available on balanced legs. This

leaves you juggling to try and be sure to maintain balance

making your focus primarily on recruiting. The other

issue, which is related to the first, is that someone in your

up-line could place a distributor on YOUR front line.

Sounds good right? NO. Remember, you want to reserve

these spots for serious builders. Otherwise, you will be

stuck building under one of them. Then, as you recruit

and place new members, they will always be on

someone's front line. As you can see, fairness is not to be

found in these MLM Compensation Plans.

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The Aussie 2-up Plan:

Aussie 2-up's are the worst types of MLM

compensation Plans. They are usually tied to a big

ticket item that is a one time sale, referred to as "front

end loading". As the name implies, your first two sales

roll up to your sponsor. Don't worry though, you get to

keep the commissions from the next two. When most

people in MLM only ever sponsor 2.5 people, how is

this supposed to work? Sure, you will get the first two

sales from the 2 people you got into the deal, but where

is the residual income? The Best MLM Opportunities

will never use such a plan.

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The Stair Step Break Away Plan:

These MLM compensation Plans have unlimited widthand depth BUT, once a member of your team reaches avolume of sales, that person breaks away from you.They are no longer in your down-line. You just lost ahuge chunk of your business leaving you to go build anew leg. You can bet there isn't much coaching goingon in companies with these types Plans. Some of thebiggest and Best MLM Opportunities have used thesetypes of MLM compensation Plans, but they nearlyalways fail eventually.

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The Matrix Plan:

Matrix style MLM compensation Plans have a fixed

width and fixed depth. For example, a 3X5 matrix will

have 3 front line spots and pay down through 5 levels.

While most of these programs work off repeated sales,

you can generate a residual income. The only problem

is, a fixed matrix means a fixed maximum potential

income. Some programs have gotten around this by

introducing what is known as a "Cycler". Basically, this

is a small matrix, around 2X2, and as you fill one it

"Cycles" and you start over. These cycling

compensation Plans produce little to no residual and are

totally dependent on recruiting people, thus corrupting

the matrix style plan for the gain of the company.

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The Uni-level Plan:

Uni-level MLM compensation Plans are, in my opinion,

the best type of plan. It offers unlimited width and

depth without any restrictions. You can have as many

legs as you want and build as deep as you want without

fear of losing part of your business. When it comes to

depth, there has to be some cut off point. There is not be

enough profit from a product sale to pay out through

200 levels. However, in most uni-level MLM

Compensation Plans, your percentages and bonuses are

calculated based on total volume in your organization.

In this manner, that person 200 levels deep is still very

much important to you. This type of plan promotes

coaching and training because it is a true win/win

situation for all. If you do coaching with that person

who is 200 levels deep, you can help them increase

their business and your bonus checks will reflect that

most of the very best MLM opportunities of all time

have used a uni-level compensation plan.

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The bottom line is, the very best compensation plan is the one that pays the part

time distributor. Almost everyone starts out part time. If you cannot make any

money as a part timer, you can never hope to become full time. When searching

for the absolute Best MLM Opportunities, first look at how many people you

need to break even, to make $100 a month, $1,000 and then $10,000. There are

as many different variations of MLM Compensation Plans as there are MLM

companies. Choose Wisely.

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