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MLM Software - How to pick a Commission Plan

Permalink 08/30/04 00:11, by admin, Categories: Customers


I have been getting a lot of search queries recently about how to pick, or create an MLM commission plan.

Not such an easy topic, but lets give you a little run down by starting with the most important thing NOT TO DO.

Do not take all the best parts of a bunch of MLM commission plans that you have seen and like and just paste all the bits together and think you have it licked. This could spell disaster in two ways.

The first being it could cost you $20,000 just to get it programmed.

The second being it won't necessarily flow correctly and reward the people you are trying to reward the most within your commission structure.

To decide on what comission plan to use, you need to start with the basics.

What is your Product. It is an autoship possible product (ie. repeatable)

Is it a product that is more than $200? Is it $10?

If your product is very high priced and no repeat, a binary or binary hybrid of some sort may be the best way to do.

If your product range is small and repeatable, you can use a binary or a matrix, or even a unilevel.

Non repeatable products or companies with no autoship pretty much can't use a matrix. They will be restricted to Uni-Level or a Binary.

A big range of repeatable products may lend themselves to a matrix rather than a unilivel

Commission plan design is critical to the success of your company.

Are you trying to reward the guys at the top the most? the guys in the middle? The guys at the bottom?

For the guys at the bottom, you would pick binary, or matrix, not likely a uni level in my opinion.

Truth is, in most cases you will be using a combination of matrix/unilevel, or binary/unilevel to create a best of both worlds scenario.

Design and testing of a commission plan is one place where it is really worth spending a little time and money if you intend to run your company for the long term and intend to become a major player in the industry.

Talking to your MLM Software provider before you design it all is also a great idea as it can save you a lot of money to have them give you advice on things that are time intensive but of little value to you.

Hope this helps a bit for you to at least know what NOT to do when it comes to designing your comission plan!

Oh and don't forget the Alexa Tool Bar, will really help you keep an eye on your competition and what they are doing. You can learn more and dowload it for free at:

Or Here :

and you will never be curious again!!

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