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Entries in Network Marketing Explained (4)

Friday
30Nov

Network Marketing and Your Compensation Plan

Binary, Stairstep Breakaway, Matrix oh my! What does it all mean? When you're joining a Network Marketing MLM company you don't need to learn every nuance of your compensation plan. You should however have a basic understanding of how it works. Here's one important thing to understand, how much of your payline do you actually get paid on?

Binaries only pay on your weak leg, your leaders in a stairstep breakaway will eventually be out of your payline, unilevels and matrix only pay down so many levels so the rest is out of your payline.

Many compensation plans have extra incentives to increase your payline but can you and the average person on your team achieve these extra bonuses?

Knowing the details should be part of your training but knowing the basics and how you get paid is something you need to understand up front. Would you take a job that only paid you for 20 hrs even though you worked 40 hrs? If the person you're talking to can't explain the payplan they should know someone who can. That's what a TEAM is there for. That's why you don't need to know everything before you start. But know what you're getting into.

To Your Success

Janet Napora

570-346-0596

Frustrated? Confused? Click Here to let in some light.


Friday
02Nov

What Does Your Compensation Plan Have to do with Company Overhead

When I talk to someone about a network marketing company being streamlined they don't always understand how much that affects the compensation plan. Let me explain...

As distributors we market products and create sales. That's how a network marketing company works. That's how a company makes money. Overhead is basically the company's bills. The difference between the amount of sales and the company's overhead is the money used to pay the commisions to the distributor.

A company's overhead consists of difference costs to run a company so the less money a company has to spend for overhead the more money is available to pay the distributor. Here's some examples of overhead costs:

  • Production
  • Research and Development
  • Training Events
  • A Huge Group of Customer Service Reps
  • A Big Shiny Corproate Office
  • A Jet for the Owner
  • A Board of Directors and Their Offices

Ok, see where I'm going here. The first three points are necessary. 3 or 4 hundred customer service reps costs millions of dollars a month. Salaries, benefits, computers, a building, rent, utilities and so on.

A 3 million dollar building? How many distributors are actually going to go to check it out? 

Do you care if the owner has a million dollar jet?

Board of Directors? Too many chiefs with ridiculous salaries. (These are included in publically traded companies along with shareholders)

This money is coming out of your pocket. My company just gave us a raise-how cool is that?! That's what a streamlined company  can do.

To Your Success

Janet Napora

570-346-0596

Best MLM Resource Success in 10 Steps

   


Tuesday
30Oct

Building Residual Income in Network Marketing with Relationships

FreeIQ.com

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To Your Success
Janet Napora
570-346-0596

Best MLM Ebook Success in 10 Steps