This post will give you an overall idea about the big picture of how to earn in an MLM company. There is what they called a COMPENSATION PLAN wherein there are different ways on how to make money.
Generally, when you consider a Compensation Plan, you will want to know about 4 general areas about it that many people will want to know about:
1) Retail Profit
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 is about 25% our company – Alliance in Motion (AIM) Global .
2) Team Overrides
The Second Area is Team Overrides. Just like a Real Estate broker or Insurance Agent, this is where you develop a team of Reps and help them become successful and get paid a certain % as an override off for it. You become a sort of a “Master Broker” for your company and training others do the same thing. This is where most people misunderstood about MLM….they don’t understand that what we do is just like a Real Estate or Insurance Agent…only better.
3) Leadership Bonuses
The Third Area is Leadership Bonuses. This is where you help develop successful leaders in your group, and you get an additional royalty bonus. You get rewarded by helping others develop their Leadership skills and capabilities….the most fair compensation in the world.
4) AIM Global Rewards
The Fourth Area is Rewards. This area is a favorite among Network Marketers…..once you have reached a level of success, many companies will give you free trips in some of the luxurious place in the world at all expense paid (air ticket, 5 star hotel, pocket money) that you can qualify for…indeed a great incentive to work for!!!
It is important you understand these components of the Compensation Plan because this will help you guide in choosing which MLM company that offers better.
Compensation Plans- What to Know Before Choosing.
Show Me the MLM Money!
What should you look for in an MLM Network Marketing Compensation Plan?
That is what drives the MLM industry…the quest for a better life, a better future, and a better income.
Why did you join your company?
For something to do?
That is why 99% of all folks who enroll in MLM companies join for a better lifestyle…and the hope of making more money is what drives the industry.
Every company has a way they pay their distributors, known as a “Compensation Plan”. Every company has one or a combination and that is how you are paid…by the volume you have created by the Compensation Plan.
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 products and services to the marketplace, and that is what drives the wealth vehicle.
There are different types of Compensation Plans to know about and consider, and there are many more Hybrid forms like AIM Global has…but generally there are 5 different types, and you need to really understand the Plan that your company has.The 5 Types of MLM Compensation Plans.
The 5 Basic Kinds of Compensation Plans are:
1) The Stairstep
The Stairstep is a simple plan that has certain requirements that you must meet to get up the “Stairs of Success”…each stairstep is a promotion based usually on the Volume of sales. The higher rank/step the higher the compensation meaning more money for you. However, you must make yourself qualify each month to obtain the benefits at that rank. And the stairstep usually has a number of levels it pays down to.
2) The Unilevel
The Unilevel is a simple “Number of levels” that the company will pay you, and usually there is no promotion or rank. You make money by getting a certain override off of the volume, and usually there is a requirement of volume to qualify for a check.
3) The Binary
The Binary is an interesting design. It usually is a 2 “legs” that you can have “Business centers” with. However, in here there is what they call the “challenge of balance”…you must balance the volume form or required points of one leg to the other leg. You must balance the two, and you usually can override the same volume a number of times with different business centers.
4) The Breakaway
This plan has been said to have become somewhat unpopular in the industry, as you could lose the business 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. It usually is a stairstep type of Plan, but I have seen it in others as well. I disagree. It is a good plan for those who work it.
5) The Matrix
The matrix is a computer driven plan that people are put 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 choose what kind of plan you feel you want…
If your interested to take a piece of the pie of the MLM industry, I suggest you to be in AIM GLOBAL, if you have any questions at all, and get familiar with the plan we have and how it works then I will be more happy to help you.
Get your share of the network marketing entrepreneurial revolution through AIM Global!