This great article from my friends Sarah Thompson and Tina Gregory has very useful information about compensation plans.
Want some insight into figuring out how your MLM company is paying you? These are some general but, Oh So important questions to ask, and get answers to about YOUR money!
Is Your Compensation plan set up for recruiting or retail sales? If Your plan is focused on recruiting you’re just building a paycheck, you’ll get no residual income from recruiting and you’ll never be able to retire….Isn’t that what we’re doing this for? Your plan should be focused on retail sales.
How many people do you need in your organization to make your desired amount of income per month? Ask yourself…How much do you make per distributor? per spot? and divide that into your desired monthly income. That will tell you how many people you need to make that amount of money each month. Then ask yourself….Is this do-able for me? and how long will it take me?
You just may be surprised at the answers you get!
How is the money transferred? Does your new distributor send YOU the check, then You take your share and send the rest to the company? Can you only pay with cash? a money order? or a check? If You’re taking the money then, taking your share and sending the rest to the company, who owes who the 1099 tax form at the end of the year? That company is only going to claim the amount of money that they received. If Your company does not accept credit cards ,they have NO merchant account! Why?
What product is your company promoting? If Your company has NO product ,or NO retail sales, then you are in an illegal pyramid scheme. This company will eventually get shut down and all the time, hard work and money that you have invested will be gone forever!
Ask Yourself, would I buy this product with no business opportunity attached to it? Did you know that 72-74% of a downline are product users only! Not everybody wants in on your
business!
Have you done a search on Ebay for your companies product? What’s it selling for? If I can go to Ebay and buy your product for $2 a bottle and you’re trying to sell it to me for $19.95, which one do you think I’m going to buy? Also….If there is an over abundance of your companies product for sell on Ebay I would want to know why?
Is your company Publicly Traded? Publicly traded companies have a high overhead, the higher the overhead the less you will be paid! The cost of maintaining the fancy building, the vehicle fleet, and the CEO’s extravagant vacations 4 times a year will continue to rise and the Compensation plan will continue to be adjusted taking money from YOU, the distributor, each and every time.
Does your Compensation plan pay part-timers? This is important because when we first start our business it is often necessary to keep our full time employment until we are established and making money. The only time we have left is “part time” to work on our business. If the Compensation plan is designed to pay part timers then we will be in profit much sooner and able to own our own lives…..Isn’t that what we’re doing this for?
In summary,
People, take a good long look at the compensation plan before you join any company, get the answers to these questions and make an educated decision on if you really want to join this company and if You will ever be able to make any money with it. The answers are easy to find, you can get a great start in this FREE ebook:
http://JenniferAllen.successin10steps.com/?mad=21047
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