Which Multi-Level Marketing Compensation Plan Pays the Best?

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Re: Which Multi-Level Marketing Compensation Plan Pays the Best?

Postby Tim Nightengale on Mon Nov 30, 2009 3:07 pm

I have to say the Unilevel with Dynamic Compression is the best. With the Unilevel, it allows the common individual to come into the business, work it to a point where it replaces their currrent income and then allows them to work this business full time and work on up to the top pay plans and make huge money. I have met many "common" (As in not big hitters of MLM) individuals that have been able to do this. I feel Binaries are really bad because there is no middle class in a binary. You are either rich or you are poor. Historically companies that start out with a binary do not last very long. The "common" individuals in binary's that I have met that were quite far up their pay plan still needed their job. I reccomend listening to industry icon Doug Wead on this subject. Another really terrible one is the Matrix. Too risky and too much up to chance on whether you will hit the top levels. Study it and you will see. This plan is designed so that you fail. RUN from the Matrix.

In closing you need a company not only with the fairest comp plan, but one that pays out on full PV of products sold, has an equal partnership with its distributors, and most importantly life changing, category creating products or services.
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Re: Which Multi-Level Marketing Compensation Plan Pays the Best?

Postby Thomas Wagner on Mon Nov 30, 2009 5:48 pm

Compensation plans are just that..Plans. Plans can change, which is only one of the many factors to be considered when selecting "the best" plan. The list I go by contains the following factors as a minimum;

1) Who is favored in the Policy and Procedures that the plan is based upon?
2) Do the owners and operators of the company and the plan have any MLM distributor experience?
3) How many down-line distributors does it take to produce a $5000 per month income?
4) What is the product or service and how does it generate income?
5) Is the distributor required to purchase or invest so much each month to maintain bonus eligibility?

The policy and procedures of the company must favor the distributor. For example, they should not have a clause that allows the company to cancel a distributorship for any reason. A plan that allows this is a plan that has a very high risk of having no chance for retirement or inheritance. A person could spend years building a big business just to have it taken away and not be there for retirement income.

If the owners of the plan have no MLM distributorship experience, there is a high risk of lowering the percentage payout to the distributor organization. Changes could be made to the plan that favor only the company.

There can be a big difference in the number of down-line people it takes to produce a $5000 income from your down-line. When comparing compensation plans, the numbers should be crunched to select the plan that take the least amount of down-line.

Is the money that is generated to produce your income coming from the sale of products or some type of service? Product sales generate profit and is straight forward but one must be sure the product has value and people would buy it even if there is no marketing plan connected to it. In other words, would a customer that is not in the business buy the product at the stated retail price because it has value? The same can be said about a service. I would not recommend any plan that is based upon charging the distributor a monthly fee to have access to some service, privilege, or discount.

Something has to be sold in order to generate money flow in the plan. Where products are concerned, a requirement for monthly autoship purchases by plan members is seen to be a good thing for everyone. This provides product for use or resale by the distributor and provides the funds for bonus checks. Without some sort of monthly purchase requirement, the money flowing in the system can be greatly reduced meaning people are making less money. The risk of plan collapse is increased in this scenario.

I don't think anyone can say a particular plan is "the best." It is really up to the individual to compare the plan he/she is considering with other plans and to weight the risks of plan failure or collapse. A person should select the plan that requires the least number of down-line people to produce a given income and that will be there for retirement. The selection is not necessarily a yes or no decision in all cases.
Best Regards to my Network Marketing Friends
Tom Wagner

Success; Have it your way Baby Boomers!
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Re: Which Multi-Level Marketing Compensation Plan Pays the Best?

Postby chris turpin on Mon Nov 30, 2009 5:59 pm

The Best Comp Plan is the one that is designed with the Distributor in Mind.

One where the New Person along with the Heavy Hitter are both compensated for Time and Effort

One Where the Distributor Is paid Bonuses on the sugg. RETAIL of The Products and not Wholesale or below.

One That Doesn't Limit Your Income Potential or make you reenter.

One That Doesn't Charge you to sell its products

One That Pays you for Your Personal Purchases and/or Sales

One That will allow you to be active world-wide while being active in just you home country

One that has Dynamic Compression(no breakage for the company)

One that allows you to always keep your group and rank

I have only found one Comp Plan that Does that
The Traditional Stair-Step-minus- (the Break-Away)

or The one that You make the most money in, less than 400 people active for $10,000 per month

my 2 cents

Chris Turpin
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Re: Which Multi-Level Marketing Compensation Plan Pays the Best?

Postby Dany Nguyen on Mon Nov 30, 2009 11:40 pm

Is Mannatech compressed unilevel? It's a company that I'd love to reactivate my membership.

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Re: Which Multi-Level Marketing Compensation Plan Pays the Best?

Postby Rieke Fleischer on Fri Sep 23, 2011 3:00 pm

A great question! Which allows a variety of answers.

Let's start from the beginning: MLM means to sell a product and sponsor other people to do the same. Therefore you have a horizontal as well as a vertical development. Horizontal = all the people sponsored by yourself; vertical = people sponsored by your downline, which often finished at the 6th level.

So far the base. What happens with you? A good compensation plan gives you the possibility to climb up the ladder which means, the more you sell - or directly or throughout you downline - the higher you will go up.
To give an example: you start as a manager, the next step (depending on your own sales and the sales of your downline) will be a superior manager. This position will give you a higher percentage of the sales of your downline. Then you will become a vice-president and the percentage will go up another time. After that you will become a president = higher percentage of the sales of your downline and other incentives until you'll reach after silver and gold president the last position of a diamond president.

Therefore, referring to what I explained before, the best compensation plan depends on the proper skills to motivate the directly sponsored person to do the same. :)
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