MLM Opportunity with Residual, Bonus, and Commission Compensations
By Lawrence Tam
We all want to get paid. All the top network marketing companies will pay you if they are legit companies. Now, how they pay you is a different matter altogether. Do you really want to be working hard for a couple weeks to only find out you didn”t qualify for some checks? How about not being able get a check because the requirement to get paid are too steep?
You really gotta look close at the MLM Opportunity residual income. If it’’s way too confusing how are you supposed to teach it to your downline? Sure it might take time but if you can”t calculate in a ball park what you should be making then how do you know you are making what your are worth?
Too many times is see people join an organization without looking at the compensation plan. That is a bad mistake. The main reason you want to join an organization is to get paid. If you don”t get paid well do you really want to work? Who cares if you can generate a ton of MLM leads or your the kind of MLM recruiting if you won”t get paid for your work or your team’’s work.
So what are some key factors you mush have in a compensation plan?
The ones I prefer and suggest:
1) Make sure it’’s build for residual income. This is the main reason many people are drawn to network marketing and this should be the cornerstone. How hard/easy is it to calculate and determine? How achievable is it to get the amount of residual you really want. Have you done the $10k/month check in calculating what you would need to have in your downline to get $10,000/month.
I”m not a big fan of capped levels. We all know people will stack their associates under each other to spread the love. If that is done, the organization will be taller than it is wide. If your organization cuts off residuals after the 3-4 level you will be severely hampering your residual income. Try to look for one that can go to infinite levels.
2) Do you have to be your own customer? If you can make it and not be your own customer that shows you can sell this product. If all the examples of promotion rely on the distributors in consuming their own product that is a bad sign. That is an indication that residual is only based off of distributors buying the product for themselves.
Remember, to be a valid multilevel marketing business you need to have a product. If the product is only used and purchased for the distributor then your playing with fire. Make sure you can sell the product. If you can buy the same product at the store for 1/2 the price at what you sell it then you have some problems.
3) You need multiple ways to be paid. It takes time to build a good residual and until you get to that point you need to be able to get one time commissions and hopefully leadership bonuses. All those one time commissions will carry you until you can get those monthly residuals flowing in.
4) Is your residual a reoccurring cost to the customer? Do most of them buy it regardless? Did they use it even before finding your own product? If you provide a product someone buys, do you have to resell it ever month? This will a problem down the line because monthly residuals are based on products consumed per month. If most customers don”t have that budgeted to purchase that every month then most would only buy it here and there or just one time. Then you have to re-sell the item to them and close deal after deal every month.
Try and find a product you can sell every month they ever customer needs and already has a budget for it in good or bad economic times. This way your residual won”t fluctuate if your group volume are cutting back or not using it per month. This can also be the same for % based residuals. If the consumer uses less then your residuals will dip. Not exactly a good thing even if they buy it every month. This means your residuals will follow the curve of the economy. In tighter times they will scale back and your residual will shrink.
5) Is there a time limit to get your commissions? If so are they achievable? If they give you 24 hrs to complete a sale that might be okay for you but is that repeatable for everyone, I don”t think so.
6) Is this plan repeatable? If you can do this and your team can do this then your residual and one time commissions will flow in like water. If there are too many restrictions to get to trigger a bonus then that will directly affect the monthly residuals. When people don”t get paid they don”t work. It’’s very important people get paid early and often. When checks come in it validates the business and lets people know all the work they did actually paid off. Then they can repeat their experience and train new people as they enter their own MLM downline.
7) I”ve seen some that need to build equal legs. Stay away. It is extremely hard to build equal legs as it’’s so unpredictable to how good/bad a new associate will perform. If you join an organization that promotes like this then you will be forced to start stacking people to trigger a promotion which is not what you want to do for long term growth income. This still can be done and MLM success can occur but it will take more work.
About The Author
Lawrence Tam trains network marketers on correctly marketing their business online. There is no need to chase friends and family when you have good online marketing skills.
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