Comments: 7 Different MLM Compensation Types Explained

7 Different MLM Compensation Types Explained
By Mike Makler

As the Number of Network Marketing Programs proliferate the Number of Network Marketing Payment Types increase as well. This Article will explore 7 types of Payments that a Network Marketer can receive. Many Plans Employ Hybrids where they combine 2 or more of these Payment types into their Pay Plans.

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Ben Tran writes:

Subject: web dev

I want to know which comp plan is more efficient and which plan in theory will pay out better, and if there is a ceiling for any of the plan. Which is better in theory Binary or Univel?

Regards,

Ben

Comment provided December 7, 2006 at 11:21 am

Paul writes:

Subject: Pay out Ratio

Good Explanation!

Ben You need to look at pay out ratios to determine hwo lucrative a plan is or is not.

Comment provided February 22, 2007 at 9:56 pm

Lyn writes:

Subject: Good Info BUT...

You left out (what I believe is) THE MOST IMPORTANT advice of all: READ AND UNDERSTAND THE COMPANY'S "POLICIES & PROCEDURES"... EVERY LAWYER-APPROVED-FOR-THE-BENEFIT-OF-THE-COMPANY WORD OF IT. Hint: The more pages it takes to codify the relationship you have with the company, the more likely it is that the company NEEDS to "cover its' buns."

Tell the people: get past the initial whoopee-I'm-gonna-be-rich mindset. Actually READ and understand the contract you are agreeing to work under. Are you willing to expend THE most valuable, non-renewable, resource you have (your time) building an organization just to have it “legally stolen” from you by the fine print in the P & P document you didn’t read?

None of the other stuff matters at all if you’re not working under a Contract that you (1) understand, and (2) like the provisions of.

Comment provided September 18, 2009 at 3:42 pm