Posts Tagged ‘Compensation Plans for Beginners’
Back to the Breakaway?
One of the key arguments in the recent Vemma versus the FTC case was about the use of personal volume (PV) requirements for compensation qualification. The FTC contends that compensation must be paid on the sale of product and not on recruitment. But if a company requires PV for compensation, it is unclear if the…
Read MoreBinary Compensation Plan
We sat down with Ray Rawlins, commission programmer of more than 40 years, to get his insights about binary plans. How do they work? What variations have been seen in the industry? What bonuses are they often supplemented with? How are they programmed? Let’s find out! Full Transcript Binaries In multilevel marketing, a binary plan…
Read MoreBinary Basics
Many companies use a binary commission as part of their overall payout plan. When the binary plan arrived on the scene, it proved to be a near opposite approach to commissions than that of the existing plans. Every other compensation plan up to that point had been built on the following two premises: (1) Commissions…
Read MoreTypes of compensation plans (part 2)
Check out part 1 if you haven’t read it yet. To continue our review of the three major compensation plan types, let’s look at the other areas in which each plan differs. Aside from the primary characteristics that make each plan unique, there are several other differentiating factors. Let’s take a look at the monthly…
Read MoreMLM plans: the Three Types
There are three common types of MLM plans: breakaway, unilevel, and binary. With a unilevel plan, distributors can put a lot of people on their first levels and they can build as many legs as they want. With a binary plan, distributors can only have two legs. In a breakaway, rather than legs, you build…
Read MoreHow to pick the right compensation plan
When you’re new to direct selling, it can be difficult to understand and navigate compensation plans. If you’re on the ground, selling product, you need simple answers—not a bunch of complicated math—and luckily there are shortcuts you can take. It is possible to learn enough to maximize your payout without jumping into the compensation deep…
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