Why did you join your network marketing company?
For something to do?
Yeah — right.
You go out, and create Volume of sales, and you get a certain percentage of the sales. Most plans focus on the sale, or movement of
There are different types of Network Marketing Comp Plans, and there are many more Hybrid forms.
But generally there are 5 different types, and you need to really understand the Plan that your network marketing company has.
The Stairstep is a simple plan that has requirements that you must meet to get up the “Stairs of Success.” Each stairstep is a promotion based on Volume usually, and each promotion you make more money. Usually you must qualify each month for the rank you obtain to get paid at that rank. And the stairstep usually has a number of levels it pays down to.
The Unilevel is a simple “Number of levels” that the
The Binary is an interesting design for a Comp Plan. It usually has 2 “legs” that you can have “Business centers” in, and you have a volume requirement to get paid on each leg. There is what is called “balance” in the Binary. You must balance in some form the volume from each leg to make sure you don’t have a runaway leg. One leg explodes, while the other one sits idle. You must balance the two, and you usually can override the same volume a number of times with different business centers.
Some forms of this plan have become somewhat unpopular in the industry, as you can lose the business in a leg you build, once it gets to a certain level of success, and it “breaks away” to no longer be a part of what you get paid on. Some other forms do not have this feature — you can keep your business in every leg, even if it gets to the breakaway point. Depends on the type of stairstep you are usiing. It usually is a stairstep type of Plan, but I have seen it in others as well.
The matrix is a computer driven plan that people are placed into your group by computer, and they go in the next available slot. Usually this plan is combined with some form of a Binary, and it does work well if there are a lot of people that are recruited. When you recruit someone, the computer searches down for the next open slot, and positions them there. There are some plans that allow you to override the computer’s selection if you want them to go a particular place in your downline.
Ok…so now you must see what kind of plan you have. See your upline if you have any questions at all, and get familiar with the plan you have and how it works.
They are thinking, “Can I make money with this? And is anyone else doing it?”
1)The First area is Retail Profit.
You must show the prospect that they can earn a retail profit with your products and services…usually it about 40- 50%…
2)The Second Area is Team Overrides.
This is where, just like a Real Estate broker, or Insurance Broker, you can develop a team of Reps and help them become successful, and get paid a certain % of override off of them, just like the Real Estate and Insurance Brokers do. You are sort of a “Master Broker” for your company, and help others do the same thing. This is where most people have trouble with
3)The Third Area is Leadership Bonuses.
This is where you help develop Successful Network Marketing leaders in your group, and you get an additional bonus or override from your group. You get rewarded by helping others develop their Leadership — the most fair compensation in the world.
4)The Fourth Area are Rewards — like trips and cars.
This area is a favorite among Network Marketers. Once you have reached a level of success, many companies will give you an additional car payment money, and also take you on trips that you can qualify for — a great incentive to work!!!
Again…..KEEP THE Network Marketing Comp PLAN SIMPLE.
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