Mlm Compensation Plans and Some Hot MLM Tips To Know Before You Join That Business Opportunity

What kind of mlm review site would this be if I didn’t teach ya a little something about mlm compensation plans right?

So here it is, the most awesome and dreamy mlm compensation plan lesson you get to have today so you can understand a little more about all the mlm compensation plans I’m throwing out there at yah on this mlm review site!

Let’s start out with some names:

• Network Marketing Compensation Plans
• Direct Sales Marketing Compensation Plan
• Multi-Level Marketing Compensation Plans
• Referral Marketing Compensation
• Attraction Marketing Compensation Plans
• Relationship Marketing Comp Plans (Remember that review I did on Nerium?)
• Direct Response Marketing Compensation Plans
• Pyramid Selling Plans
• Super Sales System Compensation Plans (not sure if that is one or not but I did come across it!)

(see https://en.wikipedia.org/wiki/Multi-level_marketing)

WOW…no matter what you call these mlm type companies and comp plans, they are all very similar in the way they structure their compensation for their distributors, directors, brand partners etc…

My goal here with this post is to get you on the right track in understanding all the confusion.

All of the words listed above referring to compensation plans are in fact the same exact thing are generally understood amongst the mlm companies that house them.

So if you are new to mlm marketing or relationship marketing or whatever you really want to call it, this post is going to help you discover the different types of compensation plans that exist amongst all the mlm companies.

Some mlm company comp plans are more confusing than others so it may take a few reads of their actual plans to understand them.

Remember my Beach Body Coach friend?

She doesn’t even fully understand the Beach Body compensation plan (which is a binary compensation plan by the way) yet she is confident that she make thousands of dollars with it.

I look forward to watching her succeed. I truly hope it happens and I do spend some time trying to help her out.

In any case, whether or not you are involved in a binary comp plan or a unilevel plan in your mlm company, you do need to understand it along with all the mlm bonuses (this was generally the most confusing for me when I began to research mlm compensation plans) so that you can maximize your earning potential in mlm.

Most people that start a online internet network marketing business do so to make cash. They may eventually love the product but some do not.

Sad, but mostly true.

Then there are the ones who are so in love with the direct selling product that they want to share it with others.

Once you start to believe more in a product that you are set up to sell (especially in mlm or network marketing) you will get more results than if you just focus on bringing in just money. ( I could be wrong but from what I have read by the top mlm earners in the industry, this is a true statement)

Of course if you are joining mlm companies for the first time, you want to find the top mlm compensation plans on Earth right?

Of course you do.

Who wouldn’t.

You can start with understanding the basics.

One of the first and foremost basics PRIOR to any mlm compensation plan out there is to be a walking bill board.

I’m not kidding.

You should be prospecting everywhere and with your body.

For instance, if you are taking products from Isagenix, and people start to take notice, then you better chat all you can about it because results and confidence sell best for any mlm product.

Confidence alone can sell a lot of things.

Some people that fall in love with products that they buy through network marketing are not even aware that they can actually sell the products and make money.

Take my BeachBody Coach Friend for example, she joined because a friend of hers was showing results and always talking about beachbody on facebook, but not once did she ever consider becoming a coach.

It was insane, the girl had handed over at least 30 or more people to her own beachbody coach who then took them under her wing and was making money of the referrals.

You can imagine, the girl was elated when she realized she could save money on beachbody products by becoming a coach and getting the discount AND make money off of anyone that she put in her downline as customers or coaches.

Finding a business opportunity to sell something you love is awesome and that’s where attraction marketing can win on so many levels.

People are locked in on the product and their eyes glaze over about the possibility of finding financial freedom forever. (which is how most mlm comp plans talk about their marketing opportunities)

People who own brick and mortar businesses and others who have corporate jobs have fallen into the mlm opportunies without ever taking the time to understand the compensation plans.

Residual Income is a hard thing to resist right?

(It’s never that easy…unless you have a lot of money upfront to pay for others to do the work you need to do to actually make it big in the mlm companies)

Whoot Whoot!

Everyone is jumping on the Financial Freedom Train! Joining the Dream Teams and being adopted by the Empower Teams and Freedom Families all around the globe.

None really know what that network marketing compensation plan is….and many don’t find out until they are already about ready to give up on the mlm lifestyle dream.

ON top of that, each mlm company doesn’t just stick to one type of mlm compensation plan.

There are all sorts of hybrid plans out there too!

There is so much more to being successful in a mlm company than a compensation plan, but you need to understand all types to get an idea of which one is the best for you.

 

If you stick around long enough, read to the end of this post, I’ll give you the best mlm tip ever on how to win with mlm.

(if you haven’t already figured it out.

MLM Compensation Plans

Mlm Comp Plan #1

The Unilevel Compensation is one in which all new distributors go in your front line or your first level. (see mlm glossary)

You generally just recruit others and place them in your downline and then encourage each of those that you sponsor to do the same.

Variety is key here, because you want to touch all different types of buyers out there, not just the ones like you.

Being a superior coach recruiter is almost certainly a trait you want to have in order to get paid and earn extra money in a Unilevel Compensation Plan. Unilevel compensation plan doterra uses is similar to this.

People who are “scared” of asking things of others or who have social “issues” generally don’t do too well and do not succeed in a mlm. They become candidates for the mlm rehab programs real fast.

Here are the Pros for becoming a member of mlm company and taking advantage of the unilevel compensation plans out there:

1. You make a TON of extra money (cashola) if you are a recruiting superstar. Clearly you are superior in every way and would make money no matter what you do right? (Such a tiger)

   

2. There are a lot of great bonuses (usually).
3. Larger Payouts – but as the mlm companies take note of how to grow their companies, more and bigger and btter bonuses…like those mlms that offer car bonuses in this mlm review site.)

Here are some reasons to hesitate and cringe when you see a unilevel compensation plan:

1. There is no spillover so you grow solely on the energy you put into the mlm opportunity.
2. Many only pay out once a month.
3. You likely can not earn as much as you could with other plans with your superior skills.
4. Each person that you enroll in the mlm company is basically at odds with one another because they are now competing to fill their one line up

Mlm Comp Plan #2

Stair Step Breakaway Compensation Plan

Known as one of the oldest compensation plans in the mlm industry, this network marketing compensation plan is what is used in Amway and Tupperware.

The mlm reps are responsible for their own personal volume and the group sales volume which ifs created by recruiting others and selling products.

Bonuses and discounts are given to the group leader and as they continue to develop their downline, they move up in rank until they “break away” from their upline. This basically forms a new group within the mlm company and often is accompanied by infinity commissions.

The stairstep payment is often calculated by a computer and is very complex.

High earners can actually teach their distributors to gain excessive amounts of inventory orders (through their own funds) and “trick the system” to get a higher rank.

As the volume increases, the compensation grows. Once you break away, you lose your uplines group volume but you get residuals fromm when you were with them.

Reasons to love the Stair Step compensation plan

• It works
• Residual income and extra money in your pocket

Reason to dislike this mlm compensation plan

• Generally the Top Earners get mo’ money
• Inventory “loading” to cheat the system
• Break aways cause loss in volume (but not residual income). You may have to maintain a specific volume and this means you have to replace the mlm distributors who broke away. (Isagenix calls this BV)

Mlm Comp Plan #3

The Matrix Compensation Plan – Forced Matrix Compensation Plan

Extremely similar to the unilevel compensation plan in that everyone that you personally sponsor is in your front line. However, in a forced plan, you are only allowed so many people on your front line and once you reach a certain crux, your personally sponsored peeps are then forced below your front line.

So for example, if you are in a 5 x 9 Matrix, you are only allowed to sponsor 5 people on your first level.

After that level has five people, you then fill each level until your matrix is completely full which in this example would go 9 levels deep.

Why to love it

• There is limited width (the amount of people you can put in your front line) and therefore you are more likely to encourage members in your downline to grow and excel because ultimately it helps you too.
• You May get spillover from your upline and this occurs when your first level is filled. Any and all new recruits will go under you.
• Team work -Always a good thing right?

Reasons this comp plan sucks

• You might not get any spill over
• You can not grow larger than the matrix allow so you limit your pay.

Mlm Comp Plan #4

Binary Compensation Plan. (Think BeachBody and Isagenix)

This is a very attractive plan and tends to be kind of simple (if you can call mlm compensation plans simple at all)

Being one of the more recent mlm company plans developed, this 90’s plan is popular and seen as fairly simple with many advantages.

Many people tend to succeed in the binary compensation plan (but many don’t too!) The people who do well are the ones who are basically mlm superstars to begin with right? Yeah probably.

Binary is simple. You are allowed TWO in your frontline and the remaining distributors or associates or brand partners (whatever you want to call them) are then placed under one of the existing level one peeps.

It creates a “security” for the new mlm distributors that you bring into the plan and the more support that you offer, the more likely it is that they will start to get excited and start building your company with you right?

Yes and no.

Yes, if they don’t ever have to do any work. There are some people that expect everything to just happen for them so in a binary plan, you may be able to help people by growing their downline, but they may not do much of anything if you keep baby sitting them and then when you get busy because you have 10 levels or more to care for, you get a weak side.

Binary Compensation plans supposedly focus on one goal as a team and people focus on helping one another. (so far this has not been my experience because I haven’t made a dime this way..but time will tell right? I’m not sure if I want to wait for how long that might take)

A Binary Compensation plan is said to be more Volume driven (I’ve seen this especially when reading about the Isagenix Binary Compensation Plan) however, just the other day, it was made clear to me that my focus (if in Beachbody) that I should focus on bringing in more coaches. However…volume driven was actually referring to the amount of coaches.

You should focus on just brining on as many coaches as you can and not worry about if they are superior mlm ninjas or not. Even though it would help you.

It’s the blue collar way of approaching the mlm world. Bring in more and you might hit a homerun.

The binary compensation plan seems to steadily grow you as you build your team rather than you getting out of control and some plans have levels that require you to sponsor so many coaches before you ever earn a dime. (beachbody)

You then open up new business centers once you fill up your first one. It’s harder for me to explain, but you basically build new business centers once you fill up your old one to continue company profits.

You can then build that business up and continue to “bank” on the binary compensation plan.

Here are reasons to love the Binary Comp Plan

• Team focused
• Generally offers new start or fast start bonuses to new members
• Very large weekly income potentials
• Fair, you generally can understand them too
• Spillover – This means if you keep you volume up…you benefit from the team effort. (good stuff)
• Multiple business centers are possible so you can grow in width after you have maxed out your first successful group.

Reason to hate it

• You get paid on your weakest leg
• You still have to recruit
• You still have to sell product
• You may get attitude from people not getting paid because they didn’t reach the minimum qualifications to do so.
• You need to understand lead generation (check out these millionaire mentoring videos for more)

Top Mlm Tip

 

First of all, I don’t really promote joining a mlm until you have a solid knowledge of how lead generation and online network marketing works (thus this mlm review site) and I know a great program to do so if you are interested (Hint: Brad in the video at the top of this post).

From my own personal experience, there is no way I would be nearly as confident as I am now (remember confidence sells right?) if I hadn’t taken this course and I have to tell you it has given me the skills to earn extra income from home.

In addition to that, I am supported everyday by a network of amazing people who are doing the same course as I am who know the ins and outs of mlm living and offer all sorts of crazy support to help you build your own business (mlm or not!).

The basic model focuses on building a local lead generation business so that you can work with local business owners near your home or in the world really to grow both of your businesses.

But…that’s not the mlm tip I was going to give you (although it’s not a bad one!! you know…get yourself an online lead generation coach)

The best mlm tip is that you need to understand that in order to make cash and checks in your mailbox (or via direct deposit) you are going to have to take the time to do it right.

DO NOT JOIN a MLM company just because you have MONEY STARS in your EYES.

Things to consider when joining a mlm company or when choosing an online marketing business opportunity:

1. Do you like the quality of their products? If you don’t, how can you possibly think that you can make a living from selling them. Not only that, how in the world do expect to get residual income and financial freedom if you don’t believe in a product. If you don’t’ believe in it, it may very well be a crappy product that won’t be around long. You don’t make money from thin air so pick your mlm companys and their mlm products wisely. Look for longevity and valu
2. One Timers – Are these mlm products consumable or not? It’s like if you are selling the Peloton Exercise Bike, it’s a one time sale, you’re not going to make a living off of that thing forever. If you have consumable products that are quality and people want them (think Avon skin so soft for getting rid of insects on babies) then you have the opportunity to make residual compensation off of that product for years and years to come.
3. The Right team matters – Who is the leader in your group? Who is taking the lead on the mlm company? Are they known for scamming people or jumping ship? Have they already been successful? You need to join someone who has already had mlm business success because it may help you shortcut the learning curve (especially if you don’t take the online courses that I’ve taken). Do they understand the mlm compensation plan? Are the genuine or just in it for the money? What are their long term goals for their own mlm company? Are they confident? (You knew that one would be coming back right?)
4. Innovation – Is this company committed to growth and researching new ways to stay current in the market place? Don’t join overnight sensations, join big impactful and committed to growth type companies.
5. Training and Tools to help you. – Does the company have a good training program? Sadly, most mlm companies I have seen in the back end have great looking landing pages and funnels but their trainings in the back end is horrendous and it’s a wonder they don’t lose more people more quickly because of the confusing or lengthy ways they try to help people grow. Some just guide you by saying :”Blog for 30 days!” or “Work on our own Personal Development and the rest will fall into place”. These are great tips, but they are just tips of the success iceberg. Does your coach or leader know how to use the tools if they are even offered? I remember asking one of my leaders how to find something once and they were like “I didn’t even know we had that option!” Yikes.
6. Does it feel like a TEAM when you join? If you fall off the Face of the mlm company Earth will someone reach out if you are gone and try to help you where you got lost or stuck in mlm?

Please! Consider these options when choosing a mlm company. and if you’re smart and you really want to learn the tricks of the lead generation trade prior to going in blind with a mlm company, put your nifty little email here and we’ll help you decide if an online course is the right move for you. Or if you are totally serious about a course, then schedule a call with us here: Schedule a call.

 

 
AWeber Web Form Generator 3.0.1 –>

 

 

 

Please don’t bother us if you’re not serious about making extra money at home or learning how to be a lead generation guru. WE only let serious peeps in. :)What kind of mlm review site would this be if I didn’t teach ya a little something about mlm compensation plans right?