Network Marketing Compensation Plan Nigeria - Best MLM Compensation Plan
Network marketing compensation plan Nigeria - Network marketers are constantly looking for the best mlm compensation plan and best mlm companies to join.
For the records, there are essentially four types of network marketing compensation plans.
So, which one of these four is the best mlm compensation plan?
In my opinion, the best multi level marketing compensation plan is the binary compensation plan with matching bonuses.
Well, the binary network marketing compensation plan is the best mlm compensation plan because it is simple, straightforward, and you earn from the turnover of all your team members even from your downlines that have out-performed you.
In a binary network marketing compensation plan, you build only two teams . . . a left team and a right team (or left leg and right leg). And you get spill-overs from those above you, making your team even bigger.
With a binary pay plan, none of your superstar downlines can 'break-away' from you as with the stairstep breakaway pay plan. And with matching bonuses built into the binary pay plan, you have a killer multi level marketing compensation plan.
The above discussion may sound complicated to someone new to network marketing. I do not wish to complicate it further by starting an in depth discussion of the pros and cons of each compensation plan.
Since this Nigeria mlm network marketing web site is for the average guy and not network marketing techies, I will simply this discussion further by looking at compensation plan from the perspective of mlm marketers.
As mentioned in the previous chapter on multi level marketing definition, network marketing compensation plan has two aspects to it . . .
The product sales performance part of mlm compensation plan refers to the total volume of product sales made by the network marketer while opportunity sales performance refers to the total number of new distributors registered by the network marketer in question and, in particular, the total sales volume of his entire team.
Here is the big caveat in multi level marketing.
Network marketers (or mlm marketers) are required to make very low personal sales volume. In fact, this is one of the attraction of multi level marketing.
The personal sales target that must be achieved for a network marketer to get paid his accrued commission is very low. Many times as low as just one unit of sale.
However, network marketers are actively encouraged by mlm companies to focus more on selling the mlm business opportunity because the pay plan has been structured to pay network marketers more when they have a bigger team size. And someone who is a member of your team is someone directly recruited by you or recruited by someone else in your team.
So, one of the network marketing compensation plan payment indices is the total sales volume generated by the team members of a network marketer.
Naturally, the bigger the number of active distributors in your team, the greater the volume of sales.
Another mlm compensation plan payment indices is the size of your team sales.
If your team sales reaches a particular level, you earn an extra leadership bonuses. When it reaches the next level of achievement, you earn a higher team or leadership bonus.
The compensation plan from mlm companies for network marketers emphasizes building a big team because you earn more when your team is bigger.
Now you understand why most network marketers would rather talk to you about becoming a distributor rather than tell you about the products and their efficacy.
Yes, people follow the money!
The Best MLM Compensation Plan
As mentioned above, the best mlm compensation plan for the average guy is the binary compensation plan with matching bonuses.
However, I have noticed that some people manage to make big income even from mlm companies with terrible compensation plans.
So, if the compensation plan important?
Yes. But the compensation plan alone is not all that is required to be successful with your network marketing business.
Sure, a handful of people will also do well with mlm companies with terrible network marketing compensation plan. But that does not make that pay plan the best for you.
Do what's right for you. Do NOT follow the crowd.
The best mlm compensation plan helps you earn more money faster and helps you build a bigger team faster so you can qualify for those juicy leadership bonuses sooner.
I choose to earn more money in less time and achieve leadership status sooner. What about you?