How Much Do You Know About your Compensation Plans?

Although there are a lot of compensation plans around and available to all. It is my hope to establish an educational explanation why all compensation plans are not right for you.

What I find intriguing about this, maybe even quite bizarre is about two years ago, I had never heard of compensation plans. As I journeyed through my quest to find the right network marketing company I stumbled across an offer I couldn't refuse.

It was an invitation for free training and mentoring in network marketing. By tuning into the weekly training calls offered I not only learned about compensation plans, I was educated on business models, personal development and so much more.

So today I'm delighted to share with you and enlighten you on the different types of compensation plans and how choosing the right plan will make the difference in your networking success.

A compensation plan is basically the baseline of how you as a representative in a company will be paid. Let's examine a few of the more popular ones. As I stated before, there are a lot of different plans but today I will touch on only a few.

Unilevel plan-You will find a unilevel pays on unlimited width, still it is more common for companies with this plan to only allow you to get paid 3-5 levels deep. Yet you can build as wide as you choose to.

Binary plan-Choosing a binary plan, pay-outs are made weekly, and you will be paid on volume. In most cases binary plans are much harder to build. Bi means two, which also means two legs will have to be built. You will only get paid if the legs are balanced out. This is something to be very aware of.

Stairstep Breakaway plan-In this plan it is like you are more on your own in the business. By that I mean your upline won't be offering much help or support to you in business, simply because they are aware if you reach a certain level before they are ready for you to, they will lose you. You breakaway from them. Now, with some stairsteps, upline may still receive a small percentage on all of their group. If that's the case then you may receive some support from them.

Aussie One-Up & Aussie Two-Up-In an Aussie when you sponsor your first and your second depending upon if its an one up or two-upyou are required to give away your first one or your first twoto your enroller. That can't be a good feeling. The outcome will be that the others that you might bring in will have to do the exact same thing. Their giveaway will then benefit you.

There are other plans such as Matrix and so forth. The ones named above are probably the most used ones. They all have some good and bad within them. A great compensation plan would be a hybird plan. One that consist of the good in all comp. plans and leaving out the worst.

How can you know if a compensation plan is right for you?

I would say by the answer you receive to the question asked “How many people do you need in your organization that's on a monthly autoship, to earn $10,000 a month?”

Let's do a little comparison. We will call them company A and company B In company A you will need 2,500 people on a $120.00 monthly autoship to make $10,000 a month.

In company B you only need 400 people on a 100 point, which totals around $160 per autoship to make $10,000 a month. Now which company would you prefer to build? Clearly company B would be built more easily.

These are some things to be aware of when you are evaluating companies and looking for the right one to be apart of. As you can see the right compensation plan will make the difference in your success. Hopefully this has been beneficial in assisting you on evaluating and getting to know about compensation plans.

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