I was reading some articles about MLM pay plans this morning. Consider the following comment I clipped from an article I found floating around the web:
"Breakaway plans are also known as 'takeaway', because when a distributor breaks away from your group you will lose all commission and bonuses on their sales."
This is an example of outright false information. I know of no stairstep breakaway plan where you lose everything when someone "breaks" from your group. In this type of plan, which is used by many of the longer-established MLM opportunities, a distributor is rewarded with a "promotion" for reaching a certain level of achievement. This is based on personal and group volume.
When they "break" from their upline group, they are eligible for better commissions and bonuses. Meantime, their original sponsor will continue to receive a bonus on activity in that group. It might not be quite as much as they would make before the break occurred, but that's a reasonable price to pay for long-term stability.
When a distributor breaks and forms their own group, they have become a proven leader and are making money. They are likely to remain in the business for the long haul. This is a fantastic incentive and helps an organization to remain profitable.
Just as a side note, the article from which I pulled this misinformation went on to promote the wonderful advantages of some other type of compensation plan. It isn't hard to see why they might want to tear down the stairstep breakaway plan, and others as well.
Be careful when evaluating compensation plans. There is a lot of hype and (shall we say) misleading advertising out there. All plans have advantages and disadvantages - none are perfect. To be attractive, MLM compensation plans must be structured to provide incentive to part-time as well as full-time distributors.
Here's another example. Take the situation with a binary type MLM compensation plan. In the simplest terms, you start by building two legs - one to the right, and one to the left. MLM recruiters promoting the binary compensation plan sometime get attention by saying "we will build half of your business for you". This is partly true. What they will do is help build one of your two legs by placing new distributors there.
It is then up to you to build the other leg before you can make any money. What they don't always tell you is that there has to be a certain balance between the legs for you to get paid. You may have $3000 in volume this month in the leg that was built for you, but if you don't have pretty close to that in your other leg, you won't make anything. How much depends on the structure of the plan.
The bottom line is that you have to work as hard, and sponsor roughly as many people, to make money in a binary as with most other plans. There is no free lunch.
The whole point is this - before you choose an MLM business opportunity, carefully evaluate the products and the company first. Never start a business based on compensation plan hype. The pay plan is important, but take claims with a grain of salt and look for common sense and reason.
Nonqualified Deferred Compensation Plan
Whenever a person wisely decides to put their future into their own hands and join a business opportunity, it's no surprise that one of the first things that they're going to want to figure out is how they're going to make money. You're no different then from anyone else who's already making money with Agel. We've all wondered the same thing. After all, without money and pay, there's really no way to carry on; first for simply putting food on the table, and then for achieving financial freedom.
Over the years, network marketing companies have been trying and trying to come up with the perfect compensation plan for people joining their companies, and most have come up with some superb ways of providing their distributors and business partners with great ways to make the best type of income in the world ? residual income.
However, over the years most of the network marketing compensation plans have been known for being notoriously difficult to understand, and therefore sometimes hard ? especially for the beginner ? to benefit from.
The Agel Compensation Plan has become one now known by top Network Marketers like Randy Gage and Randy Shroeder as revolutionary, making it simple for those who are willing to put in the work ? even beginners ? the best chance in the world to see success early. Agel has devised this compensation plan frankly because it saw ? simultaneously ?the great benefits that residual income compensation plans provide. But? just as well, the founders also knew the pitfalls of many compensation plans, and started from scratch to fix that for its hardworking distributors. (By the way remember, hard work is a very relative term!)
At first glance, the Agel compensation looks very much like what's known as a binary plan, which means that as you build your organization ? a.k.a. ?downline? ? you build a left side and right side. However digging deeper into the plan you quickly see that Agel's compensation plan is drastically different. Agel has actually revolutionized the entire industry and come up with a totally fresh and new way of compensating their distributors, not only more fairly, but much more handsomely.
Agel's compensation is actually a Quadra-Plan. Because the older original network marketing plans had some very strong characteristics which made it possible for distributors to create a beautiful income for themselves, Agel has kept the best of the four original types of plans, and threw out what didn't work.
Makes sense right? Why fix it if it isn't broken?... But why keep it if it is? So therefore what you actually get is a compensation plan where unlike other plans your people will never break away from you, ensuring that you're paid for their efforts residually.
You also won't have to worry about going crazy balancing your left and right sides. You get paid for everyone that you enroll, as well as for their efforts no matter which side they're placed. Agel has a great system to make sure of this.
Between their Fast Start Bonuses, (where you get paid either $35 or $200 for each person that you enroll yourself) ? and the revolutionary Leveraged Matching Bonus, (where you'll get paid on down through seven generations), there are actually eight ways to earn with Agel each and every month
Usually when you join a Network Marketing company there are ranks to attain, and Agel is no different there. However, with the Agel compensation plan your earnings coming up through the ranks are incredible (if you work), and it's much easier to qualify for getting to those different levels than ever before. First you'll quickly become a Manager, but before you know it ? if you're willing to put in the work, and diligently apply some effort ? in much less time than you would expect you can attain the higher Diamond and Double Diamond levels.
Add to that the Car Bonuses, the Travel Bonuses, as well as the extraordinary Executive Bonuses, and your monthly income has the potential to soar with all of the normal blemishes of a compensation plan simply non-existent.
Both Eldon Beard & Robert D. Thomson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Eldon Beard has sinced written about articles on various topics from Sleep Disorder, Best Mutual Funds and Recipes. Eldon Beard is a network marketing veteran and home business coach who shows you how to start and build a successful home based business. His popular
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