Shane Discusses Compensation Plans

I woke up this morning with this... NEED to write an article about Compensation Plans.

So here we go.

First of all, I want to discuss a word that a lot of people love.  I hate it, but a lot of people really like it, so we'll go ahead and discuss it (along with why I hate it).

That word is "spillover".

Spillover is what happens when you sponsor more people than you can put directly below you (your first level).  The people you sponsor go elsewhere (maybe you can choose the place, maybe the company chooses for you).  You probably get some kind of leadership bonus or something for having spillover.

Now, this isn't why people like spillover.  The reason people like it is because they think they're going to get something for nothing.  Someone above them will have some spillover, and someone is "spilled" over to your team.  Yay!

Now, myself, I've never seen it happen, but I'm sure I'll get a lot of comments from folks telling me that they've done it or it's happened to them.

Anyway, a lot of companies like to put "spillover" on their websites.  Folks, if you're in a company that has this on their website, please, please, PLEASE tell them to remove it.  It's a marketing ploy that makes a lot of people quit when they never receive any spillover.  Spillover is used to alleviate the fear of loss.  Remember that for later.

Now then, let's get to the bread and butter; compensation plans.

BINARY

Binaries (I suppose that's the plural form) have two legs.  I don't care what the company calls them, if it has TWO legs, it's a binary.

Now, a  lot of times the company will give you a hundred, three hundred, or a thousand people in your strong leg.

Fantastic!  Now then, how much money are you making?

Nothing.  Why?  Companies pay you on the weak leg.  They don't mind giving you the strong leg because it's free.  You don't make any money from it (but the company makes a KILLING).  Remember that fear of loss we talked about earlier?  It's basically the same thing.  You have that strong leg, but it's pretty pointless since you don't get paid on it.

Don't fall for the ploy.  Know that you're going to have to build your weak leg to make money.  Ask whoever is trying to sponsor you how many people you need to make $10k a month.  Remember that whatever number that person gives you, that's how many people you need in your weak leg to make that much.  It doesn't matter how many people you have in your strong leg.

It's a balancing act

UNILEVEL

Unilevel plans are plans that a lot of people like because they can build to infinity wide.  You can have a million people in your first level.  HOWEVER, you have a fixed depth that you can build to.  Most unilevels go down five levels.  Some go deeper, some more shallow. 

A general rule of thumb is, if you like to build deep, a Unilevel Plan probably isn't for you.

STAIRSTEP BREAKAWAY

Stairstep Breakaway plans, first and foremost, do NOT promote mentoring.  I don't care what kind of leadership bonus or infinity bonus or whatever else your company gives you, it doesn't promote mentoring.

Okay, this is what happens.  Let's say there are five "steps" in this stairstep breakaway.  We'll use some made up people to help with this diagram.

I sponsored John.  John sponsored Mary.  Mary sponsored Matt.  Matt sponsored Jessica.  That's five, right?

1) Shane
2) John
3) Mary
4) Matt
5) Jessica

Alrighty.  Business is going great down this leg.  I'm making like six hundred dollars from down this leg alone.

But... what happens when Jessica sponsors someone?  That's where the breakaway part comes in.  Jessica sponsors Mark.  John's ENTIRE downline breaks away from you.  You no longer make any money from this leg (sure, you get some kind of leadership bonus or something.  That's great).

A lot of heavy hitter guru space commander people tell you not to mentor or even talk to anyone more than three levels down from you.  That way, there's less chance of that leg not breaking away from you.

Yeah...

Forced Matrix

Forced Matrices are usually 3x5.  This means you can build 3 wide and 5 deep (there are some that go wider and deeper like 5x7).  What happens when you build wider than 3?

SPILLOVER

Okay, for the sake of arguement, let's say you get to decide where the spillover gets to go.  Myself, I'm in like your third level and I don't have anyone under me yet.  Well, you then put Mr. Spillover under me.  Mr. Spillover is a SLUG.  He never builds at all.  Well guess what?  He's on my first level(the one I can only build 3 wide).  So now I have to use my other two spots to get some people who will build my entire business, and I'll have to build UNDER Mr. Spillover and build HIM a check.  That's welfare.

That's why I hate spillover.

HYBRID

Hybrid's are my personal favorite.  There's different combinations of compensation plans that they can put together, but I'll tell you the one that I'm familiar with.  If you know of any others, please leave a comment and tell me about it.

The Hybrid that I'm familiar with is a plan where you can build to infinity wide and deep.  There's no spillover, and it promotes mentoring.  People often talk to people four, eight, even twenty levels below them.

On this type of Hybrid, you get commission on everyone in your team. 

Guys, no matter what compensation plan you're in, you need to ask one CRUCIAL question:

"On average volume, how many people do I need in my team to make ten thousand dollars a month?"

If you need ten thousand people... wow.  If you need even a thousand people... guys, honestly, in the real world, do you see something like that as being easy?  Will your downline be able to get a check?

I'd suggest finding a company where you only need between 300-500 people.  That's a fairly easy amount to achieve.  You can do whatever you want to, of course, but I like getting more for working less.

If you have any questions, please feel free to email me/call me or leave a comment.  I'd be happy to discuss it with you.

To your success,

Shane Enochs
ShaneEnochs@gmail.com
Success In 10 Steps
304-840-4186