Binary MLM Compensation
In this final installment of Understanding MLM
Compensation we will look at the positives and negatives of binary MLM compensation. A binary plan operates on similar principle of restriction, to that of a 2 x 2 matrix plan , in that the first generation of your MLM downline is limited to two people. This limitation creates an
organization that is made up of two separate legs, which …
Unilevel MLM Compensation
In this installment of the series on Understanding MLM
Compensation we will at the advantages and disadvantages of unilevel pay plans. As discussed earlier, unilevel plans closely resemble a stairstep/breakaway plan without having the breakaway
component. Unilevel plans generally set a limit to the number of generation levels from which commissions can be earned, without a limitation on width of those levels. Advancement to
higher compensation levels is accomplished …
MLM Matrix Plans
In this post on Understanding MLM Compensation we will
be looking at the advantages and disadvantages of a matrix plan. As discussed previously a matrix sets strict boundaries on width and depth of the MLM downline.
Advantages of the matrix plan
The first advantage of a matrix compensation plan is the concept of spillover. Because there is a limited number of front line spots, generally 2 or 3, any recruits above that
…
Stairstep and Breakaway MLM Compensation Plans
This is the second installment in the series Understanding
MLM Compensation . Today I want to discuss the pros and cons of stairstep and breakaway MLM compensation plans.
Advantages of the Stairstep and breakaway MLM plan
Historically stairstep plans have offered the best earnings potential. The breakaway component of these plans allows a person to build bigger teams and earn compensation from deeper generational
levels. For example in …
Understanding MLM Compensation – Part I
Understanding MLM compensation plans can at first glance seem daunting. It is my hope to shed some light on this subject for you with a general
overview. There are basically 4 types of pay plans that are being utilized in network marketing today. Each has its own strengths and weaknesses.
Stairstep/Breakaway Plan s
These MLM pay plans are structured like a flight of stairs. Each step represents a higher level of achievement. As …