MLM Compensation Plans – The Truth Part #1
What you are about to learn is all about numbers, the math. If you do not understand the math of MLM Compensation Plans you will wind up chasing your tail. Sometimes comp plans are designed purposely so that you need a degree in physics to decipher them.
It rarely makes sense to even do a MLM Compensation Plan Comparison because they are all structured to have the same basic payout within a few percentage points of each other.
Well, today is your lucky day because I am about to pull back the curtain for you and help you understand how most compensation plans pay, what they pay and why you are struggling.
The first thing to understand is that most comp plans are all the same whether they call it a Binary MLM Compensation Plan, a Matrix, a Unilevel or whatever. They are all designed with a hypothetical payout and that number may be said to be typically 50%- 60%. Does not matter what they say it is as it is a hypothetical payout and rarely gets paid. This is due to something in the industry called “breakage.”
The only way to find out what is actually paid is to look up the financial statement of an MLM public company like NuSkin or Herbalife and see what their actual net payout percentage in commissions and bonuses are and you will be shocked at what the actual number really is.
Most involved in the industry newbie or pro really do not understand payouts, they are just hard working people that put their blind faith in what they feel is the Best MLM Company because they fall in love with the idea of freedom, residual income or the dream. That is OK. But wouldn’t it be a little smarter to find a compensation plan and product that you fall in love with because the math is correct? Without both you will spin your wheels for years or quit because you don’t have the right combination.
In business feelings and emotions are not the proper criteria with which to make a monetary or business decision.
It is all about the numbers.
In MLM Compensation Plans-The Truth Part #2 I will actually discuss the raw percentages and help you understand why the average MLM Compensation Plan is a bear to master or get you where you want to go.
