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Understanding Compensation Plans for MLM

Distributors need to understand commission and compensation plans so that they can maximize earnings. One of the basic elements of compensation is the primary bonus type. Often companies refer to these as binary, unilevel, or stairstep breakaway. Other commission plan types include fast start bonuses and pool bonuses. Once a distributor understands how these basic types work, they can modify their behavior to maximize earnings.

  • June 24, 2015

    5 Common Mistakes in MLM Startups

    You’ve created a product or multiple products unlike anything else out there. Now, you’re excited and determined to start your own successful MLM Company. We’ve provided you with several articles to help you grow and build a successful MLM business: Starting an MLM Company that Will Last and Starting a... Read more ›

  • April 3, 2014

    The Perfect Compensation Plan

    I’ve been working with MLM companies and compensation plans for over 30 years, and one common misconception is that there is a “perfect compensation plan” that would work for any company. There is no perfect compensation plan, but there is a golden rule which, when applied, will create favorable compens... Read more ›

  • August 20, 2010

    The Breakaway, Hybrid Uni-level, Binary Differences Part 5

    Note: It has become increasingly clear to me that it's just as important for network marketing distributors to understand MLM compensation concepts as the MLM companies, themselves. Why? Because distributors invest their all into building a downline. The bottom line is if distributors understand MLM commissio... Read more ›

  • August 20, 2010

    The Three Proven MLM Compensation Plans Part 4: Binary

    This is Part 4 in a series of five articles. Note: It has become increasingly clear to me that it's just as important for network marketing distributors to understand MLM compensation concepts as the MLM companies, themselves. Why? Because distributors invest their all into building a downline. The bottom li... Read more ›

  • August 10, 2010

    Mass Recruiting vs. Personal Touch Recruiting

    Mass recruiting vs. personal touch recruiting is probably the most important issue facing companies in the MLM industry today. Why? Because when a network marketing company decides on a commission plan, that plan endorses a method of recruiting. It is important for distributors to be aware of this issue becau... Read more ›

  • June 10, 2010

    The Three Proven MLM Compensation Plans Part 1: Overview

    This is Part 1 in a series of five articles. “What is the world’s best MLM compensation plan?” you ask. If you’re like most people in the MLM business, you just want to know what network marketing compensation plan works the best. The fact is that over the last 20 years, there have been three p... Read more ›

  • May 19, 2010

    The Beauty Of The Binary Plan

    MLM program pay plans are a bit like girlfriends or boyfriends. You believe that the one you have is the best! There are lots of MLM or network marketing pay plans. Over the years, I had often heard of MLM programs with a binary pay plan, but I had misconceptions about them, which unfortunately stopped me ... Read more ›