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Nonqualified Deferred Compensation Plans

Devon Brown

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?"

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