These compensation plans most often look really good on paper, but what you must realize is that the more complicated it is, the harder it will be for you to explain. If you can't even explain to a potential prospect of how they will get paid from promoting your system, this will obviously deter them from thinking about your program.
Over the years I have seen the wackiest of compensation plans you can think of. So called "binary cross hybrid" or something close to that, "deluxe 1-up residual modified" or however that one went and tons more. After reading over them several times, even my slightly above average intelligence level didn't have a clue at how it worked. Overcomplicated compensation plans could be a clever way for program owners to pay you a lot less than what you deserve.
Certain compensation plans are designed for members to not get paid until they have gotten a certain number of people into the program. They are specifically designed to give you a 'massive paycheck' after recruiting certain number of people the program owners know you will never be able to get.
So what does that mean for you? Let's say you will get X amount of dollars AFTER you recruit "just ten people." If you only recruit 9, you will not get paid. This leaves more money for the administrators and developers of the program. It is my advice to stay away from such opportunities like that.
Simplicity in the Type of Program:
Another thing that is important is to avoid complication in how people can join the program. I'm sure you have come across a program that has multiple different levels, all with different "benefits." People that are really interested at first can often spend extra time thinking about which level they would like to come in at. A side affect of this can be that they just forget about the program after spending to much time trying to think of what level to join at. Also, people could feel like if they didn't come in at the highest level, they would not be able to make the system work.
It is important to look at all aspects of a program and how simple it is. If you understand it easily, then chances are, everyone else will understand it easily. Complex programs just do not last!
As you can see, complexity in any business can be a downfall. A good example of simplicity are fast food restaurants. Often times, they only offer a few items like burgers and sandwiches. You don't think they have the ability to offer pizza too? Of course they do. But this just adds in another element to the equation. So just be aware of this little tip in your future business possiblities.
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