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Would you know the Best MLM Compensation Plan Ever if you saw it?
What would it look like?
Something Simple? That would eliminate most of the new ones coming out. They are hard to figure sometimes just how good they may be. The simple ones, they can be figured out easily but most people still miss a lot because they don’t know what to look for and how it affects them. But the simple one’s usually don’t look so great to us.
How about a particular type? Binary, uni-level and more? No, that doesn’t do it. You can make any of them great by doing the right things with them. They can all be made to be horrible too.
But what makes one the best? The best for you. Are you the superstar or the newbie part timer? Does it matter?
The perfect mlm compensation plan does not exist. Why? Because it does matter whether you are the superstar or the part time guy. The perfect plan for the superstar is one that pays most of the money to the top guy; him. The perfect plan for the part time guy is the one that pays most of the money out early to him. So the perfect mlm compensation plan can not exist for everyone.
What about the Best MLM Compensation Plan Ever? Still debatable but a clearer issue.
Two things to look for in the plan.
First, how many people does it take to create a specific recurring income. Recurring is what we are interested in because we don’t want another job. We want to do things right one time and reap the rewards long term.
So how many people does it take to create a $10,000 per month recurring income? I have seen 400 active distributors to 40,000 active distributors from major companies where you do about 100 bonus points per month.
It should be obvious that all things being equal, the smaller the number the better. If Adam is in a company that needs 400 and Bob is in one that requires the industry average of 2000 active distributors then Adam will reach the $10,000 per month of recurring income while Bob is still at $2,000 per month.
See the difference? It’s huge. It’s like Adam is being paid $100 per hour for his work and Bob is only making $20 per hour. That should be easy to understand for those of you with a job mentality that you want to discard.
The Second Issue is, how hard is it to reach break even or better. When a MLM compensation plan sends most of the money to the top for the superstar, this has to leave a smaller pie for the people at the bottom. The superstar does deserve more. He effects more people. The team is there because of his work. But how much is the key. If you pay the top too much then it becomes too difficult for the guy at the bottom to reach break even.
I have seen top heavy plans that require 30 to several hundred people for a distributor to reach break even. The problem, is that the harder it is the higher the turn over. The higher the turn over, the more people have to be sponsored to find the number of active people needed.
Again the difference is huge. You want to lower the number of people sponsored as well as the number of active people.
So the Best MLM Compensation Plan Ever must balance this out.
The next question, might be, can the mlm compensation plan with the fewest number of people needed to create an example $10,000 per month of recurring income also be the mlm compensation plan with minimal requirements for the new guy to reach break even.
What do you think? Is that possible?
The answer is yes. It’s been done.
Now you can have the best of both worlds. And when you are at the top making big money, you can sleep well at night knowing that you have a team of people making money and your new guys have put themselves in the best possible position for success.
And that is what MLM compensation plan evaluation and company evaluation is all about. Putting yourself and your team into the best possible position to have MLM Success.
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