Which MLM Compensation Plan Is Better?

There are numerous MLM compensation plans available today and just as many variations of each.

Although it can become a little confusing at times, there are plans that are really better than others.  Many older plans performed well prior to the 21st century but are now faltering with the intense marketing of the Internet.

All plans require work.  There are no free rides.  Those that do the most work get paid the most profit.  Top producers in all plans will drive the business forward.  All require sponsoring people to make any money.

There are four main types of MLM plans:  Linear, Binary, Matrix and Unilevel.  Although there are hundreds of variations and modifications, these four seem to be the foundation of many plans today.

Briefly and simply the differences are easily explained by looking at the number of lines that are necessary to be created to make any money.  Each line is a personal and each personal has to have a substantial downline before anyone can make any money.

The old school time tested plan normally uses a variation of the Unilevel.  The Unilevel is a width plan.  Distributors get rewarded for building 3, 6, 9 or more lines or legs.   The more legs the more money.  There is usually no limit to the amount or number of personally sponsored that a distributor can create.  Top producers tend to sponsor as many as they can and wait for someone they sponsored to do the same.  Profit is in width.

A Matrix is a fixed width plan.  You can sponsor of any number but usually you can have only a certain number of legs to place them into.  However, as a top producer sponsors more and more people they are forced to place these people below others in the downline since they can only have the fixed number of legs.  As it gets deeper, it takes more and more people to fill up a line. Profit is in the ones that get in sooner.

An attractive plan today is the Binary.  As the name implies, it is only a two legged plan.  Everyone only has to sponsor two people and they can work these down to make some significant profit.  Again, top producers are forced to place any new sponsored people in one of the two legs.  Since this forces everyone to have two legs, many have one very large leg and one very small one. Profit is in depth.

By far the most emerging popular plans for the 21st century and the Internet is the Linear or one legged plan.  This requires everyone to work one enormous leg.  Everyone gets a downline.  Even if a distributor does nothing they will still have a large downline.

People who place more in the one leg than others, get rewarded more.  Many can reap the rewards by just bringing a few to the leg.  Profit is in those who place the most people in the leg.

Which is better?  It seems that it is much easier to work one leg than several.  At least by working one leg you would always be placing people below others that you sponsored.  That way you would never end up having to abandon or leave a personally sponsored to go a work another leg.

To learn more about these concepts and thinking processes or to learn more about Dave Lovett and how he can help you, go to http://www.DaveandMichelleLovett.net or http://www.OneVertical.Info/?SOURCE=betternet