MLM COMPASS - Direction To MLM Success; A Proven Duplicable System » Compensation Plan

New Ground Floor MLM Opportunity

Don Standard — Wed, 16 Jul 2008 21:48:12 +0000

Everyday it seems there is a new ground floor MLM Opportunity announced. Find your direction to MLM success with this new one of a kind business opportunity. We have a patented advanced compensation plan, a product used by over 200 million people daily in the US alone. And with our proven duplicable MLM system, no one will be left behind because we do 95% of the work for you.

Sound familiar?

Today someone asks me to check into this new ground floor MLM opportunity for them. Where do all these gamblers come from? Don’t they know that the failure rate for new companies is around 95% during the first two years. Already this guy could be looking at only having one chance in 20 of making it to the third year with his business.

Oh, but not this new ground floor MLM opportunity. These guys have been around since 1999. They adopted the retail business model for their product. It didn’t work, but you know what, the MLM business model is what they should have gone with.

Here is what I found out in a few short minutes.

The website does not list any information about the owners or managers so we can see what kind of experience they have in MLM or don’t have.
They have a single category niche product. It failed in retail so now they want to go with MLM. They claim 200 million people use similar products daily in the US. Of course those products cost about one tenth to one twentieth the cost of this product. Looks like they described a different niche.
There is no compensation plan on the web site. All I know is that they use the MLM compensation plan model.
I checked out the product. I have seen it in the retail stores. Of course it is not there anymore. The price has gone way way up now. A package of the product is about $15. Similar products can be purchased retail for under $1.
But there is science behind their product. Yep, one ingredient makes it different than some of the competition. But there is already competition well established who use this one magic ingredient.
So I know nothing about the people running the company, or the compensation plan. But still I go to see what happens when I want to sign up. I have to agree to the terms and conditions. Guess what? By agreeing I am stating that I have read and understood the policies and procedures and the company’s compensation plan. They want me to lie right off the bat. Where are these items for me to read and understand.

There is more, but any of these things is reason not to look at this company seriously. Yet people will probably flock to it to get in on the ground floor MLM opportunity. They will not recognize how the company is spinning negatives into what looks like positives.

Sadly most will lose their money. Some will lose their trust in people and MLM. Some will feel their failure was all their fault.

But the first thing people should be doing is properly evaluating an opportunity. Before anything else, you must put yourself in the best possible position to achieve MLM success.

When you fall for a company with even a small amount of the kinds of problems listed above, you are reducing your chance to succeed.

It’s time to get educated.

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The Go-Giver – #2 The Law of Compensation.

Penny Dude — Mon, 07 Jul 2008 21:00:07 +0000

The Five Laws of

Stratospheric Success

Law #2

The Law of Compensation

Your income is determined by

how many people you serve and how well you serve them.

This law is one that is well explained by Joe when he is first introduced to the law by Pindar and Nicole. When Joe says ”he thought it was unfair that movie stars, top athletes pulled down those huge salaries. Or how CEOs and corporate founders could marshal such gigantic earnings.”

This law is not about really how many people and the value but the impact you have on these people. So this way you have control of your compensation level.

If you want more success then you will need to find a way to serve more people. We really have no limitation on what we can earn. We have no limitation and also we can all do it. The reason for that is everyone has the power to Give. It is up to you.

I feel this law is easy to understand if you read the book and go over all the information.

Watch for the next post which is Law # 3.

If you need anything let me know. My information and my help is available to anyone who needs it.

or join me at Mentoring For Free.

Your MLM Compensation Plan – Question Two

Don Standard — Fri, 13 Jun 2008 19:10:27 +0000

Two days ago on, 06/11/2008, I did a post called, “7 Questions To Know About Your MLM Compensation Plan”. On 06/12/2008, I answered question one.

Now we are ready to tackle question #2 and it is another big one.

Question Two: How many active people do you need on your team to break even after all expenses just from your recurring income?

I have found the most common break even requirements to be between 20 and 60 active distributors.

Think about all the people you have ever sponsored or even came close to sponsoring. How many of those people have ever built a team of more than 20 people?

The first reason you need to know the answer to this question is because the more active distributors that are needed for someone to reach break even, the fewer people will get there to become successful. The higher the number goes, the higher the turn over rate is.

From question one we learned that the average MLM compensation plan will require 2000 distributors to make you $10,000 per month. If everyone who joins your team is successful, then you need 2000 active distributors to earn $10,000 per month. But what if only one half or successful. You still need 2000 active distributors but you had to have 4000 people join to find those 2000.

But what if only one out of ten stick it out? Now your team needs to sponsor 20,000 people to get 2000 active distributors. And some programs are so difficult to reach break even in that you can figure that only one out of every one hundred will stick it out so you will need 200,000 people sponsored to get 2000 active ones.

What if you think your company has the best compensation plan in the world and one day after you have spent years building it, you discover how many people you really need. Best to find out now.

Hopefully you already know that network marketing is not a numbers game, it is about building relationships and teaching and mentoring. If you choose a business where almost no one can break even then you have turned it into a numbers game.

I build my business 95% with the internet and the telephone. If you are doing the same then you should also know that people on the internet are exposed to many businesses. If your business even seems hard to break even in after a couple of months, then they will move on to another business that promises them more.

To avoid this, you choose a company that gives everyone the best chance for success and can get them to break even quickly with the compensation plan.

You build relationships. If you have no relationship, it is much easier for someone to quit the business you sponsored them into.

You use a system like, Mentoring For Free, to train your people in everything they need to know to have success in network marketing. It must be a proven duplicable system. One that works for anyone, not the so called systems that are nothing but numbers games.

I have evaluated hundreds of compensation plans and I have found some that require very small numbers of people for a distributor to break even just on the recurring income, and I have found some that require over 400 people to break even.

You guessed it, people in the company that takes 400 people to reach break even believe that their compensation plan is the best in the industry.

I have found the most common break even requirements to be between 20 and 60 active distributors.

Think about all the people you have ever sponsored or even came close to sponsoring. How many of those people have ever built a team of more than 20 people?

So even with the low number, you can see you may have a problem. You want your compensation plan to require the fewest number of active distributors possible for break even to improve your chances and the chances of everyone you sponsor.

Mentoring For Free, training will help you learn to evaluate compensation plans and other information about companies so that you can put yourself in the best possible position for success. Then we will train you and everyone on your team in all the skills you need for success in network marketing.

If you have not been properly evaluating the compensation plans of the companies you tried to build, no wonder this all seems so hard to find success in the industry. If you are building something now, then stop and evaluate it. If you are looking for a new company then take the time to properly evaluate everything about the company that affects your success. We call it the 5 Pillars.

7 Questions To Know About Your MLM Compensation Plan

Don Standard — Thu, 12 Jun 2008 04:35:36 +0000

No longer am I amazed by peoples lack of understanding of their chosen MLM company’s compensation plan.

What should you know about how your MLM compensation plan works? How many of these questions can you answer?

How many active people do you need on your team to earn $10,000 per month in recurring income?
How many active people do you need on your team to break even after all expenses just from your recurring income?
Which team members do you get paid on, your “pay line”?
What are the requirements to get paid?
What are the requirements to get paid on all of your potential pay line?
How much do you really get paid on retail sales?
How does that infinity bonus work?

If you don’t have the answers to these questions, and I mean you really know for sure that you know the answers then you need to stop and figure it out now. It’s that important.

Don’t wait until you finally make $10,000 per month in recurring income to see that you needed 3500 active team members to make that income. Number one it means that since you didn’t know the answer in advance, you couldn’t put together an accurate business plan. And wouldn’t you hate to learn later that your friend that you decided not to join in his network marketing company only needed 350 active team members to make the same income.

So hopefully you understand the importance of knowing this information. I think it is so important that I am going to do several posts to explain the reason you need to know this information and why the answers that you think could be right may be way off.

Sign up for our RSS Feed so you will be sure to catch the answers to each of these important questions.