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[Houcem Rihane Contribution Level: 1]

Hi,

I want to ask a question that could help many make the right choice when it comes to mlm companies.

Question: What is your prefered compensation plan? and Why?

ps: I know that if you are a top recruiter this could be irrelevant but for a beginner this could be important since it can influence for example how quick you would start to see some money comming in which motivates for sure and helps to carry on the effort.

Thanks in advance for taking part,

Houcem

Post edited by: houcemtrigun, at: 2007/12/18 11:16

[Ryndal Rogans Contribution Level: 1]

Hey, My name is ryndal.. I'm new to the community and I wanted to share some insite on what your looking for in a company..... When you're looking at a company.... First is that they must have documentation..... That's a must in every opprotunity you look into... Also how long they've been around.... It's sad to say but most new network marketing programs fail with a 5 year span.... the management is very important, as far as how are they behind the scenes and how much experience is backed by the company within the managment..... comp plans.....to be honest you want to look for a good one... there is no best comp plan out there..... some are better then others but there's no best one out there....

At the end, once you feel that the company you're looking at meets everything you're looking for, why not join.....

hope this helps.....
Take care
Ryndal

[Houcem Rihane Contribution Level: 1]

Hi Ryndal,
I know that there is no "best" comp. plan but every plan has its ups and downs. There are plans that allow a higher potential income others that favorise a quicker income.
To kick off, what do you think about the binary comp. plan?

[Tim Stephens Contribution Level: 2]

Hey Ryndal!

Great list of what to look for in a business.

I get really nervous when someone is looking for "quick" income.

It tells you a lot about a person and their motivation. The correct way to approach any venture is to realize that to build a business takes a long term focus. I tell everyone that you need to look at business (online or off) with a 2-5 YEAR time frame mindset.

The problem with networking is if anything is being promoted as "do nothing and we will do it all for you and you will make money quick"...the only people making money are the folks who come in first and get out when the thing invariably crumbles...quickly!

I always go back to the fact that this is work, it is not "easy". It is free enterprise not welfare.

Definitely not being negative here, but people must understand you must build a foundation in any business, or it will fold.

Live your Dream!

Tim

[Karen Umstattd Company: Herbalife International of America, Inc. Contribution Level: 2]

When I was introduced to my first mlm company (still with them by the way) I had never heard the word "compensation plan" or "marketing plan" before so for me, it didn't matter. All I wanted to know was, what do I need to do to make money and what I was shown was very simple to me. Yes, our product involves retailing and recruiting and a sliding scale as to how much percentage you can earn. I wanted to know how I can make the most money the fastest and again, what I was told was simple and straight forward.

Since coming into this industry (in 1995), it's only been over the last 4-5 years I finally started even hearing about all these other compensation plans (thanks to internetwork marketing).

Point being, sure, each individual compensation plan may have it's upsides, but I'm sure they all have their downsides so for me personally, compensation plans aren't the key issue here. The key issue is, in realistic numbers, what do I have to do to make money right away?

And the top priority question is:

Is this a product that I would recommend even if I could never make a profit from it?

You see, I come from a customer service construction industry self employment background. We don't have compensation plans in this industry, we have sales, material bills, payroll and then profit. In this industry, the only thing I ever really needed to know to keep my head above water was what my profit margin was compared to my expenses, how much we had to charge for labor and how much profit margin we had to add onto the materials as well as how many sales I had to make to keep in profit.

I may be way off beat here but - this is my opinion.

I am NOT attracted to those who are shopping marketing plans. There's more to building a truely residual business than a marketing plan. If this is someone's only concern or major concern when looking at what I have to offer, I don't think we'll have a match.

Why?

Because tomorrow, a new best highest fastest quickest 99% marketing plan is going to come out and when you see it, I know you're going to jump. I don't have the time for that.

Hope you find the answers you're looking for Houcem

Merry HolyDays
Karen Umstattd

[Anthony DiFiore Contribution Level: 1]

Hi There,

What I have found to be a great comp plan is one with no quotas, not time restictions, and a way to make bonus after bonus by supporting your newly sponsored team members. We construct a team that really gives you the incentive to keep going and make it to your dream! One that offers health insurance, with no product to buy, and a way to operate your business with no overhead! How do you define "the best" comp plan? Get behind a leader who has proven themselves and quite simply listen to him. It doesn't get better than that! It is teamwork that makes it in this Industry. Focus on the team! Zig said is best," Help enough people get what they want, and you will get what you want".

All the best
Anthony

[william whitlow Company: SendOutCards Contribution Level: 1]

No best comp plan?? I beg to differ...

While yes, all comp plans work "if" you work them, there is always a best comp plan.

Some MLM companies will make their pay plans confusing for one reason and one reason only...
To confuse the distributor so they really never know what they're getting paid.

This is a key factor when you're thinking about which company to sign up with. You should be able to explain the comp plan very easily.

Would you take a job if you didn't know what your salary was?? Seriously, you should know your comp plan.

Another thing most MLM companies have is something called "BREAKAGE". Simply stated, lets say you didn't qualify for a certain payout. Well, instead of the money rolling to your upline, or the next person qualified to get it, the company snatches that money back and keeps it. That's NOT a fair comp plan.

I used to like Primerica Financials stairstep breakaway because the new recruit had to give you a few signups first, and after you built them up, they broke away, but, you had all the residual from setting up people on insurance policies, and mutual funds, so there was a benefit outside just the MLM model

A 3x7 matrix is pretty profitable too.

I hate binarys, and always will. It promotes teamwork, but I don't feel you can make a lot of money with it. Plus, a lot of companies have gone out of business that use the binary model.

The highest comp plan I saw up until 5 years ago was the Shackley corporation. They allowed you to go as wide as you want and 8 levels deep.

To date there's only one company that 1 up'ed them. They go as wide as you want and go nine levels deep. You can also stack people if you want and still keep the sponsorship, even if they're on the 200th level. Plus, the company splits the money with the distributors 50/50.

Like I said though, all comp plans work, if you work them, but as we know lots of people quit, then badmouth the company.

Happy Prospecting,
William Whitlow

[Houcem Rihane Contribution Level: 1]

You are right williamwhitlow.
A very important citerium is the simplicity.
A compensation Plan should be clear not requiring a mathematical genius to explain it.
The way the limits your income is for me also important.
Example: You can be limited by the number of levels in the depth(which is the case of most of the comp plans) or with setting a concrete limit like $48.000/month (binary of one known company) which is a great sum but you still feel there is a limit to what you can achieve.
I prefer to have the sky as limit in stead.(Because even if you try to reach the sky and fail, you will have reyched the Moon) ;)

Houcem

[Brett Slansky Contribution Level: 2]

The best compensation plan? Everytime I sit accross the table with traditional MLMers I see one thing: everyone of them thinks that their plan is the best and their products are stelar.

Do your research and see how they work. Ask questions like how many people it takes to make $300 a week of residual income first. That will be the start. The less the better. I have make my first $300 a week withing 90 days of working the comp. plan 4 hours a week.

Then help at least 4 people in your downline to make at least $300 a week and teach them how to do it fast. As soon as they see that plan is working they never quit! i personally do 90 days trial run, where I work with people and show them how the money are made. At the end, they join all the time.

Just do not force the people to join you. They will just sit on the fence and do nothing but complain.:sick:

Brett

[susan coils Contribution Level: 4]

I dont think it matters too much how the compensation plan is structured. They all work the same way. The harder you work, the more you earn. If you don't put any effort into building your business, supporting your downlines, etc, then the compensation plan isn't gonna give you much in return.
Having said that, I think that's a pretty honest way to do business. Why should people be 'compensated' for nothing?

If you find a company you're comfortable doing business with, and you're happy to promote it, you should go with it. Focus on building the business and helping others to do the same. The payplan will probably reward you in relation to your efforts.
Just my 2 pennies worth.