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We talked so far about the “whole around stuff” of network marketing companies, such as the profile of the company, its products & its people.
But let’s face it, at the end of the day we want to do business with network marketing companies because we also want to pay our bills & travel around the world!
(a funny little thing network marketing companies enables anybody to do without a college diploma!)
Like any other business, network marketing companies offer compensation plans for their distributers.
The basic of compensation plans within network marketing companies is divided to two.
With network marketing companies you earn when you have customers who are buying products from you, & you also earn when enroll new distributers to your organization who duplicate your actions.
When customers buy products from you, network marketing companies give you a certain commission depending on your monthly volume.
When you recruit new disturbers, you work with them & train to make them as independent as possible. The more you’ll have team members like this, the higher your royalty percentage will be from the volumes their organizations create (this is where the residual income kicks in)
These are the basics of compensation plans done by network marketing companies
Now the difference between network marketing companies is mostly by the number of percentage they use to pay their distributers. They also differ by slight changes with the structure of the organizations, which we won’t go to in depth here.
To evaluate network marketing companies by their compensation plans is simple.
You have to see how much time &b effort you should invest working with particular network marketing companies in order for you to earn enough for your effort.
The “numbers” can be similar with different network marketing companies, but still there are some differences between them.
Some network marketing companies let calculate sales volume done by only you & your team members. Some network marketing companies calculate sales volume done by you & your Uplines as well!
In network marketing companies jargon, you “receive depth” which is actually the number of team members you receive royalty percentage from.
Some network marketing companies “give you more depth” & some don’t.
Professional MLM businessmen who deal with many Network marketing companies
Divide compensation plans to 4 major types:
1- “Breakaway”
2- “Bi-nari”
3- ” Matrix”
4- “Uni-level”
We will not go in depth with this, & this is a wide subject that has more to it,
but you will have to work with several network marketing companies to understand it fully.
The bottom line is these:
you can look at many network marketing companies but you need to see that your time is worthwhile your efforts, keep it by simple numbers.
Ask your future mentors how much you will earn when you recruit 5 people, 10 people, 15 people, and 5 customers, 10 customers etc…
This is an important part with network marketing companies, but this is probably the only part you can view only after you join one of these companies.
click here to learn how to know if it is the right time?