Now if you haven't read my article on "why compensation plans dont really matter", just understand that my basic point is this:
Getting someone to understand the intricacies of a crazy comp plan (with BV, PV, override bonuses, runaway legs, recycling this, breakaway that, etc...) is not how we get this seemingly impossible task of duplication to occur.
So I wanted to take a second an talk about what I like to call the "Magic Number".
You see, with regard to any network marketing company's compensation plan, there ends up being a specific number of people you should ideally personally sponsor...that's the magic number.
If everyone were to recruit the 'magic number' of people then you would max out the comp plan and everything would be hunky dory!
Examples: Note: If you don't understand the specific comp plans (or why I'm saying that these particular numbers are the 'magic numbers' associated with the comp plan) don't worry about it...
A 2by4 Forced Matrix The Magic Number is 2
A 1-up The Magic Number is 2
A 2-up The Magic Number is 3
A 4by3 Recycling Matrix The Magic Number is 4
A 3by12 Matrix The Magic Number is 3
Now, these are some very simple examples. Some company specific comp plans are a little more intricate and it would take me 26 pages of writing to figure out and explain what the 'magic number' would be.
Example: I know of one company that has a Binary Compensation Structure but the Magic number is 12 (when it reality it should be 2).
Regardless...The point is this. If we are ever to see success in mlm then we must K.I.S.S (Keep It Super Simple)
I'm not saying that you shouldn't learn your company's comp plan. I'm just saying that EVERYONE needs to know their 'Magic Number' more than they need to understand all of the crazy dynamics of the compensation structure.
Isn't it much easier to say....
"Hey Tom, your job is to get 4 people, and if you do this (assuming 4 get 4 who get 4 etc...) you'll be making $5,000 a month "
than it is to say
"Hey Tom, we have a 4by5 forced matrix with rollup and compression and infinity override bonuses down to the 16th level of 3%. A full matrix at 75BV yields you a check for $5000 a month"
So What's my point...Simply this...
Simplify your life and find out your Magic Number. That's your goal and the goal of everyone in any mlm company. If we can all focus on hitting our 'Magic Number' we all see success.
Note: I'm not saying once you hit the Magic Number then Stop recruiting or sponsoring. I'm just saying that the 'Magic Number' is the simplified way of explaining a cooky compensation plan.
Also keep in mind that if your company has a complex compensation plan and you don't understand it, you may have to do some digging or talking to your upline to find out the answer to the following question:
"All B.S. Aside, how many people should everyone get in order for all of us to make a bunch of money and max out our comapnys compensation plan?"
What I find intriguing about this, maybe even quite bizarre is about two years ago, I had never heard of compensation plans. As I journeyed through my quest to find the right network marketing company I stumbled across an offer I couldn't refuse.
It was an invitation for free training and mentoring in network marketing. By tuning into the weekly training calls offered I not only learned about compensation plans, I was educated on business models, personal development and so much more.
So today I'm delighted to share with you and enlighten you on the different types of compensation plans and how choosing the right plan will make the difference in your networking success.
A compensation plan is basically the baseline of how you as a representative in a company will be paid. Let's examine a few of the more popular ones. As I stated before, there are a lot of different plans but today I will touch on only a few.
Unilevel plan-You will find a unilevel pays on unlimited width, still it is more common for companies with this plan to only allow you to get paid 3-5 levels deep. Yet you can build as wide as you choose to.
Binary plan-Choosing a binary plan, pay-outs are made weekly, and you will be paid on volume. In most cases binary plans are much harder to build. Bi means two, which also means two legs will have to be built. You will only get paid if the legs are balanced out. This is something to be very aware of.
Stairstep Breakaway plan-In this plan it is like you are more on your own in the business. By that I mean your upline won't be offering much help or support to you in business, simply because they are aware if you reach a certain level before they are ready for you to, they will lose you. You breakaway from them. Now, with some stairsteps, upline may still receive a small percentage on all of their group. If that's the case then you may receive some support from them.
Aussie One-Up & Aussie Two-Up-In an Aussie when you sponsor your first and your second depending upon if its an one up or two-upyou are required to give away your first one or your first twoto your enroller. That can't be a good feeling. The outcome will be that the others that you might bring in will have to do the exact same thing. Their giveaway will then benefit you.
There are other plans such as Matrix and so forth. The ones named above are probably the most used ones. They all have some good and bad within them. A great compensation plan would be a hybird plan. One that consist of the good in all comp. plans and leaving out the worst.
How can you know if a compensation plan is right for you?
I would say by the answer you receive to the question asked ?How many people do you need in your organization that's on a monthly autoship, to earn $10,000 a month??
Let's do a little comparison. We will call them company A and company B In company A you will need 2,500 people on a $120.00 monthly autoship to make $10,000 a month.
In company B you only need 400 people on a 100 point, which totals around $160 per autoship to make $10,000 a month. Now which company would you prefer to build? Clearly company B would be built more easily.
These are some things to be aware of when you are evaluating companies and looking for the right one to be apart of. As you can see the right compensation plan will make the difference in your success. Hopefully this has been beneficial in assisting you on evaluating and getting to know about compensation plans.
Both Devon Brown & Chander 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.
Devon Brown has sinced written about articles on various topics from Multi Level Marketing, Emotional Intelligence and Multi Level Marketing. Devon Brown (a.k.a The Success Renegade) Is one of the fastest up and coming superstars in the Network Marketing Industry.Devon is showing the Network Marketing world why the MLM companies and Gurus have it all wrong! Learn more about Devon and take adva. Devon Brown's top article generates over 1900 views. to your Favourites.
Chander has sinced written about articles on various topics from Elearning, Multi Level Marketing. Did you find this article useful? For more useful tips and hints, points to ponder and keep in mind, techniques, and insights pertaining to credit card, do please browse for more information at our websites.. Chander's top article generates over 1300 views. to your Favourites.