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7 Questions To Know About Your MLM Compensation Plan

We asked the 7 Questions in one post. Then answered the first two questions in two other posts.

Time to answer question 3 now.

Question Three: Which team members do you get paid on, your “pay line”?

Great question and one that most people don’t understand. People just seem to think they get paid on their entire downline.

Let’s look at an example. In a unilevel plan you can build as wide as you want. There are no restrictions on width but they do have a restriction on depth, usually around five levels or so. For this example let’s just assume that there are no additional ways to earn recurring income. Of course in todays compensation plans there are many ways to earn which tends to confuse things even more. But in this simple plan you get paid on everyone in your first five levels. That is your payline. You make nothing on anyone in your downline beyond the fifth level, levels 6 to infinity.

Another easy example is the matrix plan. The matrix will tell you how deep they pay. A 5×7 would pay seven levels deep. That is your entire pay line. You get paid nothing on the levels eight to infinity.

I will go into this in more detail in another post one day but the shape of your team in terms of numbers of people per level will always be diamond shaped. So if the widest part of the diamond was your bottom pay level then you are only getting paid on half of your team.

If the widest part of the diamond is at your tenth level and you only get paid to your fifth, then you are getting paid on about 17% of your team.

That is why newer compensation plans usually add additional ways to get paid on your team outside of the pay line created by the unilevel or matrix plan.

However there are a lot of plans available that do not pay you on the people outside of your main pay line and others that pay so little or make it so difficult to earn the bonus that they are just making it look like you can earn a lot of money while creating breakage for the company.

So you need to know the pay line not only on the basic part of the plan but on each added way to get paid.

You need to know the answers to all 7 Questions for this to all come together for you.

In the end even if you have great success with your company, the compensation plan and how they pay you on the people real deep in the organization will have a major impact on your income.

Don’t wait to build a team of 100,000 people before you learn that you only get paid on a small percentage of them.

Learn even more in group training at Mentoring For Free.

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written by Don Standard \\ tags: 7 Questions, Mentoring For Free, MLM Compensation Plan, Pay Line