Is there a Better MLM Compensation Plan?

When you are contemplating on whether or not to start an MLM Business, it is important to know the difference between all the MLM compensation plans available. It is impossible to include all the types of compensation plans available and their slight differences. Only the most common plans will be covered here.

By far, the simplest compensation plan to comprehend is the uni level. For the most part it goes 5 to 6 levels in depth paying a certain percentage on each level. You may sponsor as many people on your 1st level.

The matrix compensation plan takes the uni level plan to a different level. It does this by limiting the amount of reps a distributor can have on their 1st level. Once you sponsor more than the allotted amount on your 1st level, the rest go under you in the next available open slot. This is called spillover.

A popular MLM compensation of late is the 1up or 2up payplan. The 1st sales of any distributor in this plan is passed up to the next qualified rep. You begin to make this commission when you qualify by making your 1st 1or 2 sales. This allows you to make larger commissions since the payment is not spread out over multiple levels and you can in fact be paid to unlimited levels in depth. You can make a quick huge income with this plan. A drawback is you must continue to make sales, there is generally no monthly requirement to order product

A recent innovation is the binary pay plan The reasoning is that since statistics show that the average MLMer only sponsors 2 people, why not design a plan that takes this into account. Basically you have 2 legs and you stack one person on top of the other one. This sounds great in theory, but in practice, what actually happens is that the new distributor has no problem building their 1st leg because of help from the reps above them, but finds it difficult to build the 2nd leg on their own. Since they can't "balance" 2 legs they don't make any money.

I only mention Straightline Powerlines because this MLM compensation plan is gaining in popularity. It seems so attractive.......just one straight line down, each distributor on top of another. Wow......what teamwork! The problem is that the requirements to get paid are so outrageous, you make very little money. The author STRONGLY discourages you from participating in one.

A long time ago......in a different era of MLM compensation plans is the stairstep breakaway plan. Just because something is old doen't mean it isn't profitable. Some of the largest checks in the industry have been made using this plan. Checks of 2-300,000 dollars monthly and larger are not uncommon. You get paid a progressive percentage based on your group and personal volume. When someone attains the same level as you, they breakaway and you make a percentage of their group volume thru multiple levels. Call me a dinosaur, but I know real money when I see it. I wish this type of MLM compensation plan was more prevalent than it is. In my opinion, this is the Best MLM compensation plan.

I know sometimes it is difficult to decipher different MLM compensation plans. Use the information here as a primer to make your very important decision.

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