Ultimately, the key to achieving your desired income
depends on the compensation plan of the company you are
involved in. Even though your income will get larger the
more you refer and the larger your organization grows, the
company just may be keeping most of it.
For example one distributor may be earning ten thousand per
month with ten thousand members in their organization and
another distributor could easily be making ten thousand per
month with two thousand distributors in their organization.
Now this is only an example, but as you can see the second
distributor has five times less the size of organization
and is making just as much. Yet another distributor may
need even less...how is this possible? They are in
different companies with different compensation plans. You
would not know which one is you unless you know the
compensation plan of your company.
All MLM companies are here to make money. The question is
how much are they willing to reward the distributors for
their hard work? Think of deciding which MLM company you
will work hard for the same as looking for a job. Would you
settle for ten dollars per hour instead of fifty dollars
per hour? I think not!
Over your course of network marketing you will come across
many companies. I can not go over each and every possible
compensation plan but I can give you some tips of things to
watch out for. Some companies are geared towards rewarding
heavy hitters, those who will sponsor many, and that is at
the expense of the part-time distributors. Other companies
are simply looking out for themselves, and they simply
won't reward members much at all. Lastly, there are a few
that have compiled very rewarding compensation plans
because they know that if their members are successful then
they will be too, and so they offer very generous pay
plans. Here are some things to consider:
1) Are there qualifications? If so, how hard are they to
achieve?
If there are a lot of qualifications in order to earn
income, or if these qualifications are hard to achieve then
this is the type of plan that hurts new marketers or
part-time distributors. It may be rewarding to heavy
hitters, but the majority of the people simply won't
qualify for that type of income. Is their breakage or
rollup that goes to the company if distributors don't
qualify? These types of rules only line the pockets of the
company or heavy hitters. Look for a plan that has few
qualifications that are easy for anyone who works the
business to achieve.
2) What is their percentage of payout?
This may not be easy to figure out in some cases, but if
you are able to get a good grip on the pay plan you can see
the numbers and find the percentage of revenue that the
company pays its distributors. Most will pay 40-50%. This
is not bad, but I would not say it is good either. This
type of percentage is fine for a side business that you
have added to your portfolio to create multiple streams of
income. For your primary business you want something that
will be more rewarding. If your company pays out 60-70%
that can help you make a decent income fast. If your
company pays out more than 70% then you've found a very
generous pay plan.
3) How big of an organization would it require to earn
$10,000 per month?
This one you can easily figure out by looking over your
compensation plan. This does not mean personal referrals,
but your whole organization. How many people need to be in
your organization in order to make 10,000 dollars each and
every month? The lower the number is generally better
because it could mean less work for more money. You can use
this as a general rule when creating comparisons. However,
you need to take a close look at your product and
membership fee to see if this is true for your company.
4) How quickly and easily can someone start making money
right away?
This will determine if your organization will be able to
keep growing and prevent people from dropping out. Once
people have a taste of money they are likely to get excited
and work harder. If your compensation plan is able to
reward new distributors for their accomplishments right
away by getting them into profit quickly they will continue
to build their organization. However, if they refer members
and get only a small return they will not be encouraged.
Someone has made money in any pay plan. This is because
money can be made in any pay plan if you know how to
effectively build each one. This discussion is not about
that, but the fact that not all pay plans are created
equal. On your search for the right MLM company the pay
plan is a crucial element to your success, because that is
where your money comes from.
I want to highly encourage you to take a close look at your
pay plan from an honest point of view. Is it fair? Is it
rewarding? Or do you need to promote yourself to something
better?
----------------------------------------------------
Darren Olander is dedicated to teaching others how to
create a success online through internet network marketing
strategies. He is a site owner, article writer, coach &
marketing consultant enjoying the benefits of working full
time from home. Learn more about him at
http://www.darrenolander.com
No comments:
Post a Comment