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	<title>MLM COMPASS Direction To MLM Success &#187; MLM Comensation Plan</title>
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	<link>http://mlmcompass.com</link>
	<description>by Don Standard</description>
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		<title>Your MLM Compensation Plan &#8211; Question One</title>
		<link>http://mlmcompass.com/mlm-compensation-plans/your-mlm-compensation-plan-question-one/</link>
		<comments>http://mlmcompass.com/mlm-compensation-plans/your-mlm-compensation-plan-question-one/#comments</comments>
		<pubDate>Fri, 13 Jun 2008 03:14:17 +0000</pubDate>
		<dc:creator>Don Standard</dc:creator>
				<category><![CDATA[MLM Compensation Plans]]></category>
		<category><![CDATA[MLM Sites]]></category>
		<category><![CDATA[7 Questions]]></category>
		<category><![CDATA[Mentoring For Free]]></category>
		<category><![CDATA[MLM Comensation Plan]]></category>
		<category><![CDATA[Recurring Income]]></category>

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		<description><![CDATA[Yesterday, June, 11th, I did a post on the 7 Questions To Know About Your MLM Compensation Plan.
Question #1 was:
How many active people do you need on your team to earn $10,000 per month in recurring income?
The average number of active team members a distributor needs in the industry seems to be around 2,000.
Can you [...]]]></description>
			<content:encoded><![CDATA[<p>Yesterday, June, 11th, I did a post on the <strong><a href="http://mlmcompass.com/mlm-compensation-plans/7-questions-mlm-compensation-plan/" target="_blank">7 Questions To Know About Your MLM Compensation Plan</a>.</strong></p>
<p><strong>Question #1 was:</strong></p>
<p><strong>How many active people do you need on your team to earn $10,000 per month in recurring income?</strong></p>
<blockquote><p><strong>The average number of active team members a distributor needs in the industry seems to be around 2,000.</strong></p>
<p><strong>Can you imagine, you don&#8217;t know how many people you need, then one day you find out that you are in that company that needs 40,000 active distributors.</strong></p></blockquote>
<p><span id="more-89"></span></p>
<p>Keep in mind we are talking recurring income. No one cares about the fast start bonus. First most people don&#8217;t sponsor many people so it&#8217;s a tiny number. Secondly it&#8217;s linear income. You have to be working to earn it. The reason most of us do this is to build a business that pays us whether we work or not, recurring income.</p>
<p>Rarely do I ever talk to anyone who knows the answer to this question.</p>
<p>When someone does have an accurate answer it is usually because they have a simple plan where they know that they make say $1 per person so the math is easy. In the answer to another question I will show you why they are actually wrong too.</p>
<p>Sometimes people take a guess and usually miss it a mile. Like 30 people to make 10K. These same people usually have a hard time understanding that for that number to work they would have to make an average of $333.33 from each person. How much volume do you think that might take to make that much? Don&#8217;t forget the company wants to earn an income and other distributors creating that same volume want to be paid.</p>
<p><strong>The average number of active team members a distributor needs in the industry seems to be around 2,000. That would mean that you average $5 per person per month.</strong></p>
<p>Now I realize that a lot of you can&#8217;t figure out how many people you need to earn $10,000 per month in your company. But you need to understand, that if you don&#8217;t know this number then there is no way to put together an accurate business plan.</p>
<p>So look for help. Join <a href="http://pageswirl.com/rotate.php?user=mentor53" target="_blank">Mentoring For Free</a>, and ask us to help you figure out your number.</p>
<p><strong>I have analyzed hundreds of MLM compensation plans and found major well known MLM companies that range from fewer than 400 active distributors to as many as 40,000 active distributors to earn $10,000 per month.</strong></p>
<p>Think about this. Let&#8217;s say your good friend, call him Bob, is in a company where he needs 400 people and you are in a company that has an average MLM compensation plan so you need 2000 active distributors.</p>
<p><strong>If everything is equal, your skills, ability, drive, time, products, pricing and more, then when you each have 400 active distributors, Bob is making $10,000 per month and you are making about $2,000 per month.</strong></p>
<p><strong> Later, when you each have 2000 active distributors, you are finally making $10,000 per month but your friend Bob is making about $50,000 per month.</strong></p>
<p>See a difference. It&#8217;s kind of like two people with the same job, but one gets paid $20 per hour and the other is making $100 per hour for the same work.</p>
<p>The people I have talked to in the company that requires 40,000 people to create a $10,000 per month income tell me that they have the best pay plan in the industry. Of course not one of them has ever been able to tell me how many people they need. They have no idea that the number is 40,000.</p>
<p><strong>Can you imagine, you don&#8217;t know how many people you need, then one day you find out that you are in that company that needs 40,000 active distributors.</strong></p>
<p><strong>I guess it&#8217;s not as bad as finding out you need 2000 and your friend Bob only needs 400.</strong></p>
<p>So don&#8217;t you think that it is important for you to know now instead of later? I hope so. Go get the number and if you need some help, join <a href="http://pageswirl.com/rotate.php?user=mentor53" target="_blank">Mentoring For Free</a>. You get tons of free training to go with it and you are going to need that too.</p>
<p><strong>Keep a look out for my answer to Question #2. I see people get burned by not knowing this one all the time</strong>.</p>
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