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MLM Commission Plans The Truth is NONE of them are the BEST!
Call them what you like, MLM Commission Plans, MLM Compensation Plans, MLM Marketing Plans, they all refer to the same thing. How will you pay your MLM Company MLM Distributors?
The MLM Commission plan and which one is, "the Best" has to be one of the most controversial topics in the MLM industry.
Every MLM Member runs off at the mouth about how revolutionary their MLM Company's MLM Compensation plan is, how it is the best, like no other, the key to your success.
To be good an MLM Compensation plan must be balanced. It must allow the MLM Distributor to make fair upfront money soon after joining based on their initial MLM Retail Sales and sponsoring of folks who purchase MLM Products or MLM Services. We will refer to this as The Initial Compensation Component.
Then as the MLM Member run out of initial contacts to enroll, the MLM Marketing Plan must transition to more MLM residual type income based on monthly consumption and the MLM Distributor’s new personally enrolled members enrolling new folks who purchase MLM Products or MLM Services. We will refer to this as The MLM Residual Income Component
Finally there needs to be some kind of MLM generational, MLM infinity, or MLM leadership bonus pooling compensation for the long term hard worker to be able to make the really, really big money. We will refer to this The MLM Generational or Infinity Income Component.
MLM members working hard and achieving the really big money that the MLM Generational or MLM Infinity component can generate is what often keeps the "MLM Dream" alive, but in fact, $300 a month in income for the average MLM member is LIFE CHANGING, as it is normally on TOP of their regular job’s salary. Imagine how much money you would need invested to earn residual interest of $300 a month!
Understanding that a good MLM compensation plan needs to be balanced, you can see how the truth of the MLM Binary being Superior to the MLM Matrix, or the MLM Uni-level being superior to the MLM Binary, and all that type of conversation is just as we said before..... HOGWASH!
All MLM compensation plans can be great, all MLM commission plans can be terrible, and the devil is in the details. It is also important to note, that there is the perfect MLM Compensation plan TYPE, whether MLM Binary, MLM Matrix, MLM Uni-level, MLM Aussie 2 up, or MLM Coded, to fit each MLM company. It is not just a pick from the air of what you like, but rather based upon MLM product margin, MLM Product Consumability and repeatability, MLM Product price, and various other aspects related to the type of MLM corporate culture you are trying to promote.
One rule overrides the, "Right MLM Plan" for your MLM Company based upon the criteria above. If you have a proven MLM Leader, and we define that as an MLM member who has made $10,000 a month for at least 6 months in a row, WITHIN THE LAST 12 MONTHS, who is looking to team up with you as you start your MLM Company, use the MLM compensation plan type THEY want! We are not saying let them design the MLM plan! MLM Leaders are often the WORST at MLM Compensation Plan design, as they just want more, more, more, more, and have no concept or concern for the viability and sustainability of the MLM Company.
In our next MLM Blog Post, we will begin to break down the 3 stages of MLM Compensation, The Initial Income Component, The MLM Residual Income Component, and MLM Generational or Infinity Income Component.
INS can certainly help to design any MLM compensation plan compensation plan should you need help with yours. We have a generous Share in the risk plan on MLM commission plan design available to all our MLM Software clients.
Contact us today to learn more about INS MLM Software or our other MLM related services or request pricing by Clicking Here.
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