Understand the MLM Compensation Plan


One of the most important aspects of Multilevel Marketing is the Compensation Plan. Unfortunately most of the distributors fail to understand the various compensation plans being utilized in the network marketing industry.

In multilevel marketing distributors earn their income called commissions and bonus through the compensation plan based on their ability and performance. The commission is the amount that is earned by the distributors when he sells the product in the market purchased from the company.

While Bonus is the amount paid on down line sales. In general there are two type of bonus.

It is highly recommended to select MLM compensation plan after taking into account many fact and figures. The factors which need to be considered are:

Product Type: Closely evaluate the type of product for which compensation plans need to be use. Binary or Matrix plan can be used for virtually any type of product range.

Experience: The level of experience a company possesses in the industry. Binary, Stairaway compensation or board plan can be used by the company who is 1 day old as these are very easy to operates.

Country: As far as MLM is considered one also need to take the country into account. Some compensation plans are banned in some location. So carefully select the country in which you want to operate or expand.

Altogether there are different compensation plans likewise:

  • Binary Plan
  • Matrix Plan
  • Generation Plan
  • Board Plan
  • Differential Plan
  • Unilevel Plan

Just keep in mind the above points while choosing the perfect compensation plan that would provide attractive commission and lucrative bonus.



My Foster Mentor

When I was introduce to Network Marketing, I allowed my mind to open myself to the possibilities of how it would feel to wake up everyday and not have my life dictated by time, money or the lack of leader and do exactly what feels good in my heart and what is pleasing to God.

It’s like the person I always knew that I was has come out and I found my voice. I figured out that the best way to predict my future was to create it. This is the life that I will now have. So when I talk to people about my business and they said “no,that’s not for me” or “I am not interested” I just answer that it’s fine but few years from now this is where I am going to be. The train is moving with or without you. You can hop on or get out…

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