.comment-link {margin-left:.6em;}

MLM Intelligence E-zine

Saturday, July 19, 2003

How to Evaluate a MLM Compensation Plan?

Forget about the great product testimonies, the wonderful
story of how someone make it from rag to riches in their MLM
company, the hyper growth of the company and the rest of the
many other distractions that are sold to you during any of
those Network Marketing Business Opportunity Talks.

In evaluating any MLM business, do this...

If you love their story, then the next wise thing to do is
to check out the numbers, the cash flow.

This principle is good because a story, by its very nature,
is meant to dramatize, not to inform. Professional Network
Marketer know the value of a good story.

But again, if the story is good, check out the numbers.

If MLM is a business, the first thing that one should focus
on is the "cash flow" that you can generate from
distributing their products because all of us know that
there is not one single MLM company in the world today that
will tell you that their products and their company are not
the Best.

Zoom in on the compensation plan. You need to look for...

1. a FAIR compensation plan.
2. a STABLE compensation plan.
3. a SEAMLESS compensation plan.

////////////////////////////////////
A FAIR Compensation Plan
////////////////////////////////////
The MAIN reason why 95% of the people don't make money in
MLM is because most compensation plans aren't created for
"average people".

When I say "average people" I mean the person who usually
doesn't recruit heavy enough to fill the lower matrix of a
compensation plan to start earning the big money and those
"infinity" bonuses. These "average people" are usually the
part-timers.

Most part-time MLMers never get into profit much less
break-even! So ultimately, they drop out because it's too
difficult to make a profit. And it's Never because the
products are lousy!

A fair compensation plan is one that rewards the heavy
recruiter with bonuses and such and also helps the
part-timer, the "Average" person break even fast and get
into profit or positive cash flow quickly.

If a part-time MLMer make a Profit of $300 each month just
after 3-6 months, believe me, they will stay.

And you, the sponsor, your commission will steadily rise
too! Since most of your distributors will start off as
part-timers.

////////////////////////////////////
A STABLE Compensation Plan
////////////////////////////////////
I have gone through the painful process as a result of the
MLM company changing their compensation plan.

It is like your boss giving you a pay-cut, or the government
increasing your taxes.

Before joining the company, you need to know whether if the
company has a history changing their compensation plan.

It is also a sign that the company is in financial trouble.

////////////////////////////////////
A SEAMLESS Compensation Plan
////////////////////////////////////
There are so many MLM companies today in the world but only
a few good ones. Most MLM company like to tell you that the
are an international company but they can't even reward you
intentionally.

A seamless compensation plan simply means that the company
is able to reward and pay you internationally, not just in
some countries.

Personally, I think this is extremely important since
Singapore is such a small country and to make big money, one
needs to think international.

I know of a MLM company that have different compensation
schemes all across the world.

Be aware of the risks when you are involve with such
companies.

Start thinking like a true Global Business person today!

0 Comments:

Post a Comment

<< Home