Network Marketing Success - How to Choose a Network Marketing Company, Episode 4

COMPENSATION PLAN


According to longtime network marketer and student of the industry Michael Dlouhy, there are 5 pillars for success in network marketing:
1) Company Management Experience (and Integrity)
2) Timing in the Company (and in the Industry)
3) A Remarkable Product
4) Compensation Plan
5) A System for Success.



There are several types of compensation plans (click here to see Deana’s excellent article Network Marketing: Compensation Plans).
Plans include the Stairstep, Breakaway, Unilevel, Binary, Matrix, Australian Two-Up and the Spillover.

Were you aware that the compensation plan drives the behavior in the field? Deana touched on this. If you have a compensation plan – and remember, this means HOW YOU GET PAID – that does not pay you if someone you sponsored is moving faster than you and gets to a level above you, would you have an incentive to help that person get ahead if you will no longer be paid on their production? Would your upline be motivated to help you if you were the person moving fast?

How would you feel if your company only allowed you to be paid on those breakaway people when you reached their level or above? How would you feel if you knew you would never be able to pick them up again? Do you expect to have network marketing success with a company at which you had to work so hard? This type of company is more suited to the red personality See Nabil's article , who represents only 15% of the population (see Deana's article Network Marketing and The Choleric - "Reds")

Wouldn’t you rather affiliate with a company where the average person can make money to supplement his/her income? Doesn’t it make sense to seek out a compensation plan where you get paid on everyone you introduce? Michael Dlouhy says to only consider plans that pay on volume. Michael Dlouhy recommends choosing a company that also pays on retail sales volumes, as well. Not everyone wants to be an affiliate, but may just want to purchase product. Network marketing is a system of product and service distribution. There needs to be a product or service! That leaves out the Spillover model, where people sponsor other people and for the money to “spillover” from below – this system doesn’t work and is bogus.

So, for network marketing success, please read your compensation plans and know how they work. If you're not sure what type of plan is it, please contact me at the e-mail below for assistance.

Click here to download the free e-book Success In 10 Steps.

Wishing you network marketing success -

Wendy Weber, the Singing Network Marketer
602-404-1626
E-mail Wendy
www.wendywebermentor.com
"Be a Mentor with a Servant's Heart"

Other articles by Wendy

How a 55 Year-Old Single Parent in Phoenix – Who Loved Her Network Marketing Company for SEVEN YEARS! – Realized She Had Been Betrayed

NETWORK MARKETING SUCCESS – COLOR ME GREEN for PERSONALITY