Frustrated Network Marketer you need to know that Compensation Plans Can be Aggressive and Profitable or Cause Major Frustration. The compensation plan or the commission plan and the Policies and Procedures or Terms of Service are critical and crucial characteristics of any MLM/Network Marketing home based business opportunity.
The compensation plan is what draws many to this industry. Unfortunately most people never take the time to research or investigate the commission plan or policies and procedures in detail. Is one of these components more important than the other. Both of these aspects of your in-home based income business opportunity are equally critical when it comes to securing success: a pay check – neither has priority over the other.
In past blogs we have discussed Policies and Procedures, so today lets take a peek at your commission structure and what may be expected of you to receive a check.
First question to ask yourself: “What do I have to do to receive my first check?” If the answer to this question is signing-up 1-5 (possibly more) new recruits per month into the opportunity before you receive a check, which we like to refer to as “jumping through hoops” – RUN. You should be able to receive a commission check solely based on your efforts to sell and move product for the company, volume. In a company with integrity you would be considered a customer and paid a commission on your product purchases.
Second: “What qualification do I have to meet to stay qualified for commissions?” Again a company with integrity and thought for the distributor who is building the business, simply meeting your Autoship of X amount of personal points is enough to stay in qualification for a check. If your commission structure is based on having to sponsor one, two or more recruits a month, or even if your required personal sales is too high – RUN! It is also important to note that in some plans, personal requirements increase with your increasing income – wow…that brings into play another question to ask yourself, how will you ever be able to retire on such a plan? Check the Policies if there is “Ongoing” requirements such as this it means that once you stop this (recruiting) the company has the right to stop your commission checks, you can never retire. Example: you have built a nice little income which will allow you to take a vacation, a cruise perhaps, you make plans to go on a 3 months’ cruise with your family – how will you do this if you have to sponsor, a couple of people per month to be eligible for commission? You are laughing right no I can feel it. Go check our MLMWatchdog.com and pursue some of the legal battles that distributors are going through with their company. I’m thinking it may be a really good idea to RUN before you get into this tight spot!…legal battles with the guys who have the bucks to go to court.
Consider this one that I have had the occasion to read in a commission plan: You have to prove that you are an active coach and trainer for your team on an ongoing basis…
These are just a few examples of what you may encounter when you research your commission plan.
A good question to ask yourself or the recruiter who wants to sponsor you into a business is: “How many people do I need for a 10K residual income” – and watch out – this doesn’t include bonuses which are as a rule one time payments!
There are compensation plans that will pay you $10,000 per month with 600 – 1000 people on your entire team (not just those you personally enrolled) for product sales alone (not counting any sign-up bonuses or matching commissions that not everyone qualifies for.) There are also compensation plans that require up to 27,000 people to earn that same $10,000.00! Which commission structure are you trying to build?
If you need help to analyze the commission plan you are in, simply be in touch – we gladly will help you for free.
Commit to Success Today
Darlene and Dave Mills
Leadership with a vision
Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world. ~ Joel A. Barker