Network Marketing Training- The MLM Success Secrets of Explaining Your MLM Comp Plan
Network Marketing Training- The MLM Success Secrets of Explaining Your MLM Comp Plan
by Doug Firebaugh
Money.
That is what drives the MLM industry. The quest for a better
life, a better future, and a better income.
Why did you join your network marketing company?
For something to do?
Yeah -- right.
That is why 99% of all folks who enroll in MLM companies
join -- for a better lifestyle. And the hope of making
more money is what drives the network marketing industry.
Every MLM company has a way they pay their distributors,
known as a "Compensation Plan." Or "Comp Plan". Your
company has one and that is how you are paid, by the
volume you have created by the Comp Plan.
You go out, and create Volume of sales, and you get a
certain percentage of the sales. Most plans focus on the
sale, or movement of mlm products and services to the
marketplace, and that is what drives the wealth vehicle
of network marketing.
There are different types of Network Marketing Comp Plans,
and there are many more Hybrid forms.
But generally there are 5 different types, and you need
to really understand the Plan that your network marketing
company has.
The 5 Basic Kinds of MLM Compensation Plans are:
1)The Stairstep 2)The Unilevel 3)The Binary 4)The Breakaway
5)The Matrix
1)The Stairstep
The Stairstep is a simple plan that has requirements
that you must meet to get up the "Stairs of Success."
Each stairstep is a promotion based on Volume usually,
and each promotion you make more money. Usually you must
qualify each month for the rank you obtain to get paid
at that rank. And the stairstep usually has a number
of levels it pays down to.
2)The Unilevel
The Unilevel is a simple "Number of levels" that the MLM
company will pay you, and usually there is no promotion
or rank. You make money by getting a certain override off
of the volume, and usually there is a requirement of
volume to qualify for a check. Most affilaite programs
operate this way.
3)The Binary.
The Binary is an interesting design for a Comp Plan. It
usually has 2 "legs" that you can have "Business centers"
in, and you have a volume requirement to get paid on each
leg. There is what is called "balance" in the Binary. You
must balance in some form the volume from each leg to make
sure you don't have a runaway leg. One leg explodes, while
the other one sits idle. You must balance the two, and you
usually can override the same volume a number of times
with different business centers.
4)The Breakaway.
Some forms of this plan have become somewhat unpopular
in the industry, as you can lose the business in a leg
you build, once it gets to a certain level of success,
and it "breaks away" to no longer be a part of what you
get paid on. Some other forms do not have this feature
-- you can keep your business in every leg, even if it
gets to the breakaway point. Depends on the type of
stairstep you are usiing. It usually is a stairstep
type of Plan, but I have seen it in others as well.
5)The Matrix
The matrix is a computer driven plan that people are
placed into your group by computer, and they go in the
next available slot. Usually this plan is combined with
some form of a Binary, and it does work well if there
are a lot of people that are recruited. When you recruit
someone, the computer searches down for the next open
slot, and positions them there. There are some plans
that allow you to override the computer's selection if
you want them to go a particular place in your downline.
Ok...so now you must see what kind of plan you have.
See your upline if you have any questions at all, and
get familiar with the plan you have and how it works.
INFERNO Secret:
DO NOT get too complicated on telling the mlm plan to
someone. Keep it simple and make sure they understand
that they CAN MAKE MONEY with it, as that is their
greatest concern.
They are thinking, "Can I make money with this? And is
anyone else doing it?"
Generally, when you talk about an MLM Comp Plan, you
will want to mention 4 general areas about it that many
people will want to know about.
1)The First area is Retail Profit.
You must show the prospect that they can earn a retail
profit with your products and services...usually it
about 40- 50%...
2)The Second Area is Team Overrides.
This is where, just like a Real Estate broker, or
Insurance Broker, you can develop a team of Reps and
help them become successful, and get paid a certain %
of override off of them, just like the Real Estate and
Insurance Brokers do. You are sort of a "Master Broker"
for your company, and help others do the same thing.
This is where most people have trouble with MLM. They
don't understand that what we do is just like a Real
Estate or Insurance Broker, only better.
3)The Third Area is Leadership Bonuses.
This is where you help develop Successful Network
Marketing leaders in your group, and you get an
additional bonus or override from your group. You
get rewarded by helping others develop their Leadership
-- the most fair compensation in the world.
4)The Fourth Area are Rewards -- like trips and cars.
This area is a favorite among Network Marketers. Once
you have reached a level of success, many companies
will give you an additional car payment money, and
also take you on trips that you can qualify for
-- a great incentive to work!!!
Be sure you understand the components of your MLM Comp
Plan. This was just a VERY General Overview, and that
is all.
Again.....KEEP THE Network Marketing Comp PLAN SIMPLE.
The More Simple you keep it, the more powerful it
becomes, as does your MLM and Network Marketing Success!
blessings...doug
(c) 2005/ PassionFire Intl all rights reserved
http://www.passionfire.com
http://www.passionfire.com/pf_heat_8.html
About the Author
Doug Firebaugh is one of the top MLM Network Marketing
Trainers in the world. Over a million people a month
read his training ezine. He spent the last 7 years
traveling the world speaking and training on Success.
He lives in Birmingham Michigan, and you can receive
a FREE subscription to his training ezine- The MLM
Success HEAT- at: http://www.passionfire.com/pf_heat_4.html
http://www.passionfire.com
by Doug Firebaugh
Money.
That is what drives the MLM industry. The quest for a better
life, a better future, and a better income.
Why did you join your network marketing company?
For something to do?
Yeah -- right.
That is why 99% of all folks who enroll in MLM companies
join -- for a better lifestyle. And the hope of making
more money is what drives the network marketing industry.
Every MLM company has a way they pay their distributors,
known as a "Compensation Plan." Or "Comp Plan". Your
company has one and that is how you are paid, by the
volume you have created by the Comp Plan.
You go out, and create Volume of sales, and you get a
certain percentage of the sales. Most plans focus on the
sale, or movement of mlm products and services to the
marketplace, and that is what drives the wealth vehicle
of network marketing.
There are different types of Network Marketing Comp Plans,
and there are many more Hybrid forms.
But generally there are 5 different types, and you need
to really understand the Plan that your network marketing
company has.
The 5 Basic Kinds of MLM Compensation Plans are:
1)The Stairstep 2)The Unilevel 3)The Binary 4)The Breakaway
5)The Matrix
1)The Stairstep
The Stairstep is a simple plan that has requirements
that you must meet to get up the "Stairs of Success."
Each stairstep is a promotion based on Volume usually,
and each promotion you make more money. Usually you must
qualify each month for the rank you obtain to get paid
at that rank. And the stairstep usually has a number
of levels it pays down to.
2)The Unilevel
The Unilevel is a simple "Number of levels" that the MLM
company will pay you, and usually there is no promotion
or rank. You make money by getting a certain override off
of the volume, and usually there is a requirement of
volume to qualify for a check. Most affilaite programs
operate this way.
3)The Binary.
The Binary is an interesting design for a Comp Plan. It
usually has 2 "legs" that you can have "Business centers"
in, and you have a volume requirement to get paid on each
leg. There is what is called "balance" in the Binary. You
must balance in some form the volume from each leg to make
sure you don't have a runaway leg. One leg explodes, while
the other one sits idle. You must balance the two, and you
usually can override the same volume a number of times
with different business centers.
4)The Breakaway.
Some forms of this plan have become somewhat unpopular
in the industry, as you can lose the business in a leg
you build, once it gets to a certain level of success,
and it "breaks away" to no longer be a part of what you
get paid on. Some other forms do not have this feature
-- you can keep your business in every leg, even if it
gets to the breakaway point. Depends on the type of
stairstep you are usiing. It usually is a stairstep
type of Plan, but I have seen it in others as well.
5)The Matrix
The matrix is a computer driven plan that people are
placed into your group by computer, and they go in the
next available slot. Usually this plan is combined with
some form of a Binary, and it does work well if there
are a lot of people that are recruited. When you recruit
someone, the computer searches down for the next open
slot, and positions them there. There are some plans
that allow you to override the computer's selection if
you want them to go a particular place in your downline.
Ok...so now you must see what kind of plan you have.
See your upline if you have any questions at all, and
get familiar with the plan you have and how it works.
INFERNO Secret:
DO NOT get too complicated on telling the mlm plan to
someone. Keep it simple and make sure they understand
that they CAN MAKE MONEY with it, as that is their
greatest concern.
They are thinking, "Can I make money with this? And is
anyone else doing it?"
Generally, when you talk about an MLM Comp Plan, you
will want to mention 4 general areas about it that many
people will want to know about.
1)The First area is Retail Profit.
You must show the prospect that they can earn a retail
profit with your products and services...usually it
about 40- 50%...
2)The Second Area is Team Overrides.
This is where, just like a Real Estate broker, or
Insurance Broker, you can develop a team of Reps and
help them become successful, and get paid a certain %
of override off of them, just like the Real Estate and
Insurance Brokers do. You are sort of a "Master Broker"
for your company, and help others do the same thing.
This is where most people have trouble with MLM. They
don't understand that what we do is just like a Real
Estate or Insurance Broker, only better.
3)The Third Area is Leadership Bonuses.
This is where you help develop Successful Network
Marketing leaders in your group, and you get an
additional bonus or override from your group. You
get rewarded by helping others develop their Leadership
-- the most fair compensation in the world.
4)The Fourth Area are Rewards -- like trips and cars.
This area is a favorite among Network Marketers. Once
you have reached a level of success, many companies
will give you an additional car payment money, and
also take you on trips that you can qualify for
-- a great incentive to work!!!
Be sure you understand the components of your MLM Comp
Plan. This was just a VERY General Overview, and that
is all.
Again.....KEEP THE Network Marketing Comp PLAN SIMPLE.
The More Simple you keep it, the more powerful it
becomes, as does your MLM and Network Marketing Success!
blessings...doug
(c) 2005/ PassionFire Intl all rights reserved
http://www.passionfire.com
http://www.passionfire.com/pf_heat_8.html
About the Author
Doug Firebaugh is one of the top MLM Network Marketing
Trainers in the world. Over a million people a month
read his training ezine. He spent the last 7 years
traveling the world speaking and training on Success.
He lives in Birmingham Michigan, and you can receive
a FREE subscription to his training ezine- The MLM
Success HEAT- at: http://www.passionfire.com/pf_heat_4.html
http://www.passionfire.com
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