MLM Success Today-How Safe is Your MLM Check From Your CEO

If you have joined a business opportunity chances are you did so with the expectation of earning a little extra money to help with the monthly expenses or as a means of attaining your financial goals which may include retiring early in comfort.  I am sure you never thought you would have to protect that extra source of income from your crooked MLM CEO. The compensation plan, Pillar 4, Compensation Plans, is a document which describes in detail how you are  paid as a distributor in the business opportunity youimage have joined.  It details how much you will receive on each sale, the bonuses you can earn at various levels and the criteria you must meet to get a cheque. It will outline the various bonuses you can earn in the company, bonuses are a one-time bonus that is paid out upon advancement to each rank; in other words, you receive it once such as:  

  1. Leadership Bonus  
  2. Matching Check Bonuses 
  3. Retail Profits
  4. Preferred Customer Bonuses
  5. Fast Track Bonuses
  6. Team Bonuses
  7. Matching Check Bonuses
  8. Rank Advancement Bonus Pool

It is critical that you understand the compensation plan and the qualifications you must meet before you will ever see a check in your mailbox. And I might add that many of the qualifications are near impossible to ever reach.  It is like jumping through hoops of fire.

Some qualifications are:

  • To qualify for Team Bonuses, you must generate 100 PV and enrol a minimum of two Associates who remain active (with a minimum of 50 PV each month), with one placed on the left sales team and the other on the right sales team. Until this happens, volume will accumulate in both legs as long as you generate 50 PV each month
  • Associates are required to be qualified for Team Bonuses in order to participate in the GBP program
  • recruit two peoplewho enrol on a minimum 50 CV AutoShip and place one on your right sales team and one on your left sales team. Repeat this process over and over again. (on a monthly basis.)  Which means every month you must recruit two new recruits … if you do not, you do not get paid. Having a CV of 50 points in this case is the easy part. Very few people would ever recruit two new recruits a month. 

Please note, if you are wondering why you have not received a commission check yet, it may very well be because you did not meet the requirement of two new recruits that month. 

It is important that the compensation plan is designed so the part timers can get a cheque also.  Most people who are network marketers are part time, about 98 percent, so the importance of being able to earn a cheque will determine whether they will remain a business partner or wonder off to another business opportunity.  How would you feel if you were a new distributor who had made a number of sales but did not receive a cheque because you did notimage meet the criteria described in the the compensation plan?  How would it make you feel if this occurred week after week, month after month?  I have seen this with a number of new and veteran distributors who have worked for months and even years, and have never earned a dime. This causes distributors to jump from business opportunity to business opportunity because the compensation plan was designed with too many hoops to jump.  The compensation plan was designed to pay the top 1 percent off the backs of ninety-nine  percent of the distributors lower down in the downlines.

There are also many different compensation plans and each with imagetheir own design.  There are many different types like the Stairstep Breakaway, Fixed Matrix, Binary and Unilevel Compensation Plans just to name a few.  It is wise to do your research on the type of plan and match it to your personality type.  There are plans that certain personalities cannot generate success due to their own personality. Some plans may require a hard sell in order to keep up with the requirements to qualify for a cheque, not everyone is suited to that type of plan. Not everyone is suited to a recruit, recruit and recruit business model.  If one of the requirements in your compensation plan is to recruit 2 to even 5 new distributors a month, along with other qualifications, you have just shot yourself in the foot.  Very few network marketers could ever meet a qualification like this.  It is proven that a network marketer will only ever recruit an average of 2.7 people. 

A question that needs to be answered when you are doing your due diligence is: “How many active distributors and customers do I need to make a walk away residual income of $10,000 a month.  Also known as the 10K question. This will be an indication of how hard you will have to work to arrive at that goal.  I have seen some opportunities requiring as many as 27,000 and some as little as 400 active distributors and customers to reach the goal.  Think of it like 2 stair steps where there is a cheque for $10,000 at the top of each and all you have to do is climb the stepsimage to get your cheque.  Which would be more appealing, climbing the 27,000 steps or the 400 steps?  For those who may not know what residual income is the $10,000/ month does not include one time bonuses or check matching bonuses but just the commissions you receive week after week from repeat product or service sales.  For those that may want just $5,000/ month just divide the number by 2 and those that want to make more just multiply accordingly.  The question is “How many steps do you want to climb?”

If you would like some help understanding your compensation plan and how hard you have to work to reach your goal then begin contact us and we will get you these answers.

Commit To Success Today
Dave and Darlene Mills
Leadership With A Vision


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Dave and Darlene Mills

Welcome and thank you for visiting our blog. We are Mentors with "Mentoring for Free". A community of volunteers who believe in the value of education, personal development, and in sharing what we know that works to build a solid online business. We use this system to build our business and can be used with any MLM/Network Marketing company. We devote much of our time mentoring ANYONE in ANY company to build THEIR personae so they too acquire the skills they need to be successful. We will be more than glad to give you 100% of our effort and support. Today, Life is Grand!! We will never look back!! Darlene and Dave Mills "Be a Mentor With a Servant's Heart"

2 thoughts on “MLM Success Today-How Safe is Your MLM Check From Your CEO

  1. Excellent summary Dave and Darlene.

    Do your DD’s: Due Diligence, and prosper.

    Thanks for sharing!


  2. Thanks Ryan for your comment. Yes we have to do our own due diligence. I said “our own”. We can not leave that up to our friend who wants us to join the opportunity or to the upline. In many cases they failed to do their due diligence. And what happens? Yeah, we find out it is the blind leading the blind.

    You also have to know what to be looking for that could be possible red flags that you may wish to reconsider joining, or leaving a company. Education in this industry is key. We can never know too much for our own good.

    Darlene and Dave

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