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[Jim Ticehurst Contribution Level: 4]

Hi all, I have just been looking at the commision plan on a relatively new mlm company (5 years old roughly) and althrough I do belive that they are a very good company the pay structure seems to be very complex.

It is not just the complexity that I find rather demanding but also the demands that accompany them, for example, to qualify for certain 'privildges' (you can replace that word with 'commision percetages if you want to) a newcomer has to bring in a minimum amount in sales within the first 30 days. It most likely takes two weeks to recieve the sales kit.

It seems to me that the demands (because that is what they are) of mlm companies are becoming much more aggresive and the idea of 'being your own boss' have just become a bit of a joke really.

I worked as a self employed sales person for many years and the thought of a sales company saying to you when you start "if you don't make a sales target in your first month you will have reduced commision for the rest of your life'" seems ridiculous to me.

Surely it cannot be that difficult to create a commision structure that is reasonably simple to understand? not only are the demands getting more and more complex but they are open to change at any time at the complete whim of the company, surely this is not the way that 'self employed' network marketeers were ever meant be treated? regards jim T.

[Chris Brown Contribution Level: 3]

You can create you own commission plan. MLM is not your only option a lot of people buy info products you can offer services.

Ido MLM, affiliates program but
I also sell my own products where I created my own commission plan

[Patrick Lange Contribution Level: 4]

Hey Jim,

I agree with you whole heartedly that when ever a compensation plan starts off like that it's simply a lot of smoke and mirrors from the parent company to put more income in their pocket. It's a shame that they would even consider putting anything remotely like that in their plan. Especially since incoming new Distributors are building their new company.

Hopefully they won't be around long enough to disappoint many new potential MLMers.

Take care,
Patrick Lange

[Joyce Penner Company: Life Force International Contribution Level: 8]

Jim. Keep it simple - find out how many ordinary, every day people are hitting a 6 figure income with the company, how long it takes them and what they have to do to get there. That will tell you a whole lot more about the comp plan than trying to figure out the nuts and bolts of their comp plan.

K.I.S.S.
Joyce

[Richard Bravo Company: Life Force International Contribution Level: 9]

.

Jim I've been boggled many times by some of the comp plans out there.
I consider myself a pretty sharp guy, even though math isnt my strong suite.
But I've actually given up on deciphering some of these plans in the past because it was so complicated.

I can't imagine what a new person entering the industry must feel like.

As far as demands directly from the company... that strikes me as odd.
I can't say that I've ever seen that twist before.

For example in Life Force, they offer a bonus IF
you achieve XYZ in your first 30 days as well as other performance bonuses.
But nothing is required or demanded.

This is supposed to be "your business," it's your choice to perform or not.
It should be your choice to earn a bonus or not.

I have seen teams that have certain requirements in order to receive their tools and training, etc.
But that's a different scenario from the company directly.

On another note...
I would say that this is a perfect example of a topic you could leverage to promote your business Jim.
Don't bash any particular company or comp plan, but write an article or create a video where you discuss the contrast between the two scenarios and how your option is more empowering to new entrepreneurs.

Turn it around and create a positive position for you.

~RB
.
.

[David Wilcoxson Company: Magnetic Sponsoring Contribution Level: 3]

I can't imagine what a new person entering the industry must feel like.

I agree Richard. I've seen a lot of pay plans over the years, and the complexity just keeps getting worse.

For people just entering network marketing, after being an employee and getting paid either a straight salary, or with the complex formula of 'hours worked x pay rate'... compensation plans just have to blow their mind.

Even top-tier companies who used to be very straight-forward and paid large commission on sales, now have added residual income options and have become more complicated.

[Roger Aburto Company: Talk Fusion Global Contribution Level: 4]

Jim.Hi!

Yes...almost 95 % of the MLM companies are like that.

This is the new trap for the multitude of people looking for a solution.

The early retirement promise is a big lie...the fancy living(boats,cars,beach) is a lie.

If you want to keep your income you must recruit when you are in your retirement home using a walker and a diaper...and if you are smart enough to avoid being fired your family that inherit the MLM business must keep recruiting if they do not want to lose the check.

Have you ever done the math how many people do you need to make a huge check...and have you done the math how many people does your downline need in order to reach the goals you have impose to them...yes millions upon millions...just ask this question...if my downline need millions of people to reach their goals...How many active members does this company have in ten years of existence?Yes...no more than twenty thousands of active members after a decade of existence...is it realistic that you promise to all your downline that all of them can become a diamond someday? When not even the company with a decade of existence do not have more than 20 thousand of active members?

Unfortunately a very sophisticated mafia has taken control of the MLM companies...sad but true.

Be well,

Roger Aburto
P.S. When you play a higher game...you are solo...because 99% play the lower games.

[Monique O'Reilly Contribution Level: 2]

Hi Jim,

I can definitely empathize with your frustration. You are absolutely correct in saying that more companies should be clear and direct regarding their compensation plans. Too many times the fine print is what leaves associates disillusioned. However, not all companies are like that...otherwise there would be no 25-year old companies etc., and this would not be an industry recognized by successful entrepreneurs like Warren Buffett, Donald Trump and Robert Kiyosaki.

That being said, this is also the reason why we here so often in our industry about doing your due diligence. Unfortunately, a sad truth is that most of us do not like to read any more. I have heard horror stories of so many persons being mislead. The only good thing that I try to take from all of it is that there are many of us desirable of making positive change in our lives. We just have to find the right opportunity for each of us individually, and remember - first and foremost - that it does not happen overnight.

I wish you all the very best in finding the right company for you. With a product or service and compensation plan that you "get" and do not feel cheated by.

Good vibes your way!

Warm regards,
Monique

[Julie Klein Contribution Level: 1]

I worked for a company for six years, never terribly successful, but I kept hoping. Every couple years they "improved" their comp plan, each one more complicated than the one before.

When I left that company, a simple-to-understand comp plan was high on my list of requirements.

I'm glad Roger said "most mlm companies," because I work with a very simple-to-understand and simple-to-explain comp plan. It is a 3-tier company, not "multi" level, but it is network marketing.

Of course, I'd recommend my company, because I love it, and I'm growing my business every day. (I will not tell you I'm making TONS of $$, because I only started 6 months ago, but my income increases every single month. I've reached an income level where it is now making a difference in my life.) However, I'm sure there are at least a few others with simple comp plans. When you're researching, if one big page is covered with their comp plan, move on!

[b]Also, when you're looking for a biz, look for one with a product or service that you think you could be passionate about. If you're not passionate about the product you're trying to sell, it's unlikely you'll be successful.

Best of luck in your search. I hope you find a company that is a perfect fit for you.

[Nequan Jordan Contribution Level: 1]

Most are like that but not all of them. I personally hate MLM's or any business that takes a lot of work for before they pay for themselves. I tried a few of them but I just kept losing money.

I have heard of I good one so I went a head and joined it. The one I'm a part of is pretty good. They have a %100 commission plan. So if you sponsor one person then it's free. They make money from selling services to their members.

There's another one that pays %90 and gives the left over 10 to members who haven't gotten any sponsors yet. They also make money from selling services.

So there are some good one's out there. The problem is that a lot of them don't tell you their compensation plan until after you sign up.