Network Marketing compensation plans.
How you get paid in this business.
Perhaps one of the greatest mysteries in NM is compensation plans. If you didn't already lose the plot amid all that talk of starship commander bonuses, the accompanying small print is likely enough to glaze the eyes of all but Einstein and perhaps Len Clements.
Personally, although having studied advanced-level physics and economics in school and having a highly-analytical math-oriented brain, I understand 'em about as much as I understand women and teenagers. (Not very much.)
Among those who do know—and more usefully, can explain to the rest of us schmucks—is Roxanne Green. Her 'What is the best Network Marketing compensation plan?' offers practical insight from which we can all benefit.
From it, I clip:
In my opinion the best compensation plan would be a hybrid plan that takes into account the best aspects of all of the compensation plans and does not incorporate the worst aspects.
For example:
A binary compensation plan pays on volume. That is a good aspect of that plan. A binary compensation plan also pays weekly. That's always a plus. However, in a binary, you have to balance legs and don't get paid on a lot of volume if you can't balance it out on the other side. If you get placed under someone who is not building your 'strong leg' for you, you will have a very hard time making money in a binary comp plan.
A unilevel plan pays unlimited width, but generally only pays 3 to 5 levels deep. The best aspect of a unilevel is that you can build as wide as you want. I like a plan that has the width aspect of the unilevel and the depth aspect of a binary.
An aussie two-up plan gives the first two people that you sponsor up to your enroller. That isn't a good thing, but a plan that pays up to three upline people when someone is sponsored into the organization is good for all involved.
A stairstep breakaway plan does not pay the upline to help you succeed. In a stair step breakaway, you will very seldom see any upline support because once you reach a certain level, you break away from your upline and they no longer benefit from your efforts. Why should they help you be successful? But… if the upline still retains a percentage of everything you do, that is more incentive for them to help you.
The best compensation plan would include the best aspects of all of the comp plans out there.
So there you have it—or at least part of that continuing conundrum of 'just how and what do I earn in this business'.
Want to know more? Should you be so-minded (and I strongly encourage you to be eager to learn), I'm sure Roxanne can help.
Filed by g on December 7 2007
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