A BRIEF LOOK AT 4 MLM COMPENSATION PLANS

by: Judy Thompson
Copyright 2005 Judy Thompson

If you are thinking about joining a network marketing company, also referred to as multi-level marketing, or MLM, one important item you will want to understand is its compensation plan. Otherwise, “How will I get paid?”

There are four basic kinds of MLM compensation plans that will be described in this article.. Each of these may have several variations. Some plans are better suited for the people who really enjoy sales and may desire to retail a lot of products. Some plans are designed to attract especially the “heavy hitter.” Some plans pay well for the beginner and may or may not be attractive to the big recruiter. Some plans make a serious effort to reward even the little guy or gal who can only sponsor or recruit a few people, but also pay very well to the top distributors.

These plans are called Unilevel, Stairstep Breakaway, Binary, and Matrix.

1. UNILEVEL. This is a simple, straightforward compensation plan. It allows for a distributor to have a first level of unlimited width. The levels the company pays commission on generally range from 3 to 9 levels deep. The more volume generated by you and your organization, the more you can earn. A disadvantage to this plan is that building wide means the distributor may give less help to his personal enrollees.

2. STAIRSTEP BREAKAWAY. This is the most common of all the compensation plans. It is where most of the really big money is made in MLM. This big money, however, is made by a very small percentage of people. Breakaway plans are geared for full-time effort. Attrition is the highest with breakaway plans and it generally will cost more to build your business. This is a work program. It takes persistence, salesmanship, and requires the ability for you to train your recruits. Companies which use breakaway plans tend to pay higher commissions. However, the plan may be extremely difficult for most people to duplicate.

3. BINARY. This is a very complicated and hard-to-understand plan. It does, however, offer a simple system that is easy to duplicate. Otherwise, you recruit just two and help them do the same.

4. MATRIX. This plan allows you to build a limited width organization. For example, a 2 X 12 group means two people on your first level, and paying 12 levels deep. Other examples would be a 4 X 5, 3 X 9, etc. This is generally pretty simple and easy to understand and explain. The low volume requirements usually common to matrix plans helps make it a good plan for part-time distributors.

The above briefing only scratches the surface of these compensation plans. For a more detailed description, you may wish to go to: www.mlminsider.com

Even though some of the internet hype may claim that you can make big bucks with only a little work, don’t believe it! With network marketing, as in any other business, you’re going to have to work at it and make some investments if you expect to be successful. To make money in MLM, you will have to work, no matter what company or compensation plan you select!

3 very simple steps to making money online

by: Mike Law
Network Marketing or MLM (Multi Level Marketing) is one of the biggest earning potentials on the internet today. The internet is a multi billion dollar industry where the advantages of trading are virtually endless. Here are some of the key reasons why I highly recommend Network Marketing.

The ability to not only work from home but from almost any location in the world as long as you have access to the internet was the biggest attraction for me personally. It opens a whole new world of possibilities in regards to the way you can live your life.

You work the hours you want, and you are also your own boss. It is much easier to motivate yourself when you know your efforts are going to increase your own earning potential and not the person you are working for. Also your earning potential is endless and your business grows by itself once you have the right tools in place.

Another huge benefit of Network Marketing is the amount needed to invest is far smaller than virtually any other business so you really have very little to lose. However one of the reasons a lot of people fail at Network Marketing is because they want something for nothing. Expecting to make huge profits with no time and money invested will get you no where.

This leads me to my next point of working smarter rather than harder. How you market your business is crucial to its success. You are competing in a global market with millions of potential customers; however reaching these customers is your biggest challenge. There are so many marketing tools on the market today of which a large majority of them will generate very little if any residual profits for your company. The most effective tools for you to use are the ones which will target motivated individuals who are already interested in the products and or services which you offer.

You could for example invest substantial amounts of money on tools which promise millions of hits to your site and gain absolutely no business whatsoever. On the other hand you could invest smarter and utilise the tools which target those potential associates as mentioned above for a much smaller investment. And this is where the beauty of the plug in profit system is so evident. All the most effective tools and methods are supplied for you to save you years of trial and error.

So by now you are probably thinking that this Network Marketing venture of yours is going to require a lot more time than you thought? The answer is no. Right now is the perfect time to get involved for one main reason, Turnkey solutions. Network Marketing guru’s have developed these solutions to grow their businesses, however at the same time making it extremely simple for you to grow yours. Five of my income streams come from one turnkey site which was setup in a few hours with three easy steps. To get started or to learn more go to www.wealthontap.com/pips.html

All the best.

3 Business Models For Creating Wealth On The Internet

by: Sean Gum
Copyright 2005 Sean Gum

The Internet has the potential to make you rich! I am sure you have heard it over and over again. Everybody knows you CAN get rich using the Internet, but HOW?

Over the last 8 years, I have researched hundreds of Internet business opportunities... I have purchased dozens of Get-Rich Information packs... I have listened to over 100 audiobooks on how to prosper using the Internet... I've been to countless seminars, some costing as much as $3,400 to attend! And I've tested all the tips, tricks and techniques to find out what works and what doesn't.

What I discovered was that there are three distinct business models that you can use to create wealth with the Internet. I've used all three to create an income stream of over $1 million dollars per year.

And I do it all from the comfort of my home... with no employees...

Would you like to learn how?

In this article I will give a brief overview of each of the three business models. Then, in upcoming articles I will discuss each model in greater detail along with direct links to resources I have used that are working for me RIGHT NOW!

*** ONE SECRET That All 3 Models Have In Common ***

As you learn about all of the models, you will notice one thing that they all have in common. That one thing is called "leverage."

What is leverage?

J. Paul Ghetty once said, "I would rather have 1% of the efforts of 100 men than 100% of my own efforts."

J. Paul understood leverage. Some of the models that I will present will leverage the efforts of hundreds and even thousands of other people to produce an income for you...

In other business models we'll use computers and technology to create leverage.

In either case, leverage allows you to earn money while you sleep... while you vacation... while you spend time with your family....

Leverage is the secret to financial freedom!

*** Business Model #1 - Network Marketing ***

Network Marketing, or Multi-Level Marketing (MLM) has bloomed into a multi-billion dollar business. Even with all of this success, we still run into people today that call it a pyramid-scheme....

Network Marketing allows you to start a business at home that is similiar to a franchise. However, there is no franchise fee of millions of dollars. Instead, you pay a small entry fee, some as low as $35 to become a distributor. However, you get the backing of a major corporation to support you and to help you build your own home business.

You also get the opportunity to go International with your home business with some network marketing companies reaching into 60 or more countries!

MLM has come a long way, baby!

The unique thing about Network Marketing is that your upline is actually motivated to help you succeed. (Unlike a BOSS who doesn't want you to know what he knows - or you'd take his job!)

I have been (and still am) involved with 3 different network marketing companies... I will tell you about the good, the bad and the ugly in an upcoming article on Network Marketing.

*** Business Model #2 - Affiliate Programs ***

Affiliate programs have become very successful over the years. In fact, we started our own affiliate program several years ago, and saw it grow to over 3,000 affiliates in less than a year.

Basically, affiliate programs are ways that you can promote somebody else's product or service and get paid for it.

This is usually done by a banner ad, or announcement to a customer or other specialized list.

If you currently have a high traffic website, you should be participating in at least several different affiliate programs. Nowadays, there are networks of affiliate programs that take the threat of not being paid out of the picture. (It used to be a problem when everyone was running thier own...)

If you have a lot of time on your hands, and no money at all to get started in Network Marketing, than this is a great option to start out with.

I will tell you where to find these networks and how to get started in an upcoming article on Affiliate Programs.


*** Business Model #3 - Information Marketing ***

This is the model I am currently using to build my next million dollars, while my business partner spends his time building our Network Marketing businesses...

What is Information Marketing?

Basically it is taking something that you love doing and writing articles, ebooks and even creating teleseminars and live seminars.

It might sound like a lot of work, but you start small and work your way up.

I will be showing you how EVERYBODY has at least one special skill or ability that can be turned into an ebook and sold online... Really!

I recently attended a seminar that cost $3,400 to attend. This 3-day seminar was packed full of hundreds of tips and techniques to build an Information Marketing business.

I will be passing what I learned onto you through several upcoming articles....

All of the business models that I have presented have the power to create six and even seven digit incomes in as little as 9 months!

I will go into *much* greater detail on each of these three business models in upcoming articles on each one. I will also be providing updates of current progress to those of you on my mailing list, so be sure to join!

God bless...