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Circular Logic – Compensation Plans That Make Your Head Spin


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At the time of this writing, Multi-Level Marketing is quite 50 years old. It’s truly amazing that such a daft business model has survived, and even experienced incredible growth, over such an excellent length of your time .

On the surface, this sort of business features a lot of appeal. many of us are interested in the thought of selling quality products and sharing a lucrative opportunity with their friends and neighbors.

But once you're taking an honest hard check out the nuts and bolts of how 99% of those so-called ‘opportunities’ shall pay you for your efforts, much of the initial appeal goes right down the drain. It’s fairly common for an MLMer to sell a $50 bottle of herbal tonic and make only a couple of bucks for themselves.

A big reason for this is often the complex structure of most network marketing programs. Money is split among numerous different parties that it’s difficult to squeeze an honest profit out of a retail transaction.

For example, you would possibly sell a bottle of your program’s super tonic at $50, but three of your upline sponsors need to get their share of the profits before you get paid. And in fact there'll be a minimum of one important person in your upline tree who gets to say some sort of ‘over-ride’ bonus; this may mean more of the cash you generated goes into someone else’s pocket.

And let’s not ditch the clever ‘one-up’ option many MLMs build into their payment structure. during this scenario, a member’s first sale gets credited to their immediate upline.

I’ve checked out many compensation plans that need a member to retail nearly $200 in product before they're even eligible for a commission. In other words, if they come short of this monthly quota by even a couple of bucks, they don’t get paid!

The solution to the present dilemma, consistent with the always jovial sponsors and team leaders?

Just buy the minimum amount of product yourself in order that every real sale you create generates commission. then in fact you're told to encourage anyone you ask the business to try to to an equivalent .

How reasonable does that sound to you?

Sure it’s great to use and believe a product you're trying to sell. But buying $200 in vitamins or cold cream monthly with great care you'll qualify for your distributor commissions borders on the idiotic, in my opinion.

If the potential monetary gains were significant in most cases perhaps I’d have a special attitude. But more often than not participants of an MLM system are paid 10% or less of the cash they generate for the program.

In essence, the corporate owners and therefore the professional network marketers who have helped them launch their business are keeping most of the cash created by the retail and referral activity of their members.

You don’t got to join a web business opportunity to place money into somebody else’s pockets. That’s what a J-O-B is for.

The web is filled with affiliate programs that pay their members a good percentage on each successful transaction. there's absolutely no reason to accept some quite bogus MLM system that asks you to figure your tail off for pennies on the dollar.