A BRIEF LOOK AT 4 MLM COMPENSATION PLANS

by: Judy Thompson
Copyright 2005 Judy Thompson

If you are thinking about joining a network marketing company, also referred to as multi-level marketing, or MLM, one important item you will want to understand is its compensation plan. Otherwise, “How will I get paid?”

There are four basic kinds of MLM compensation plans that will be described in this article.. Each of these may have several variations. Some plans are better suited for the people who really enjoy sales and may desire to retail a lot of products. Some plans are designed to attract especially the “heavy hitter.” Some plans pay well for the beginner and may or may not be attractive to the big recruiter. Some plans make a serious effort to reward even the little guy or gal who can only sponsor or recruit a few people, but also pay very well to the top distributors.

These plans are called Unilevel, Stairstep Breakaway, Binary, and Matrix.

1. UNILEVEL. This is a simple, straightforward compensation plan. It allows for a distributor to have a first level of unlimited width. The levels the company pays commission on generally range from 3 to 9 levels deep. The more volume generated by you and your organization, the more you can earn. A disadvantage to this plan is that building wide means the distributor may give less help to his personal enrollees.

2. STAIRSTEP BREAKAWAY. This is the most common of all the compensation plans. It is where most of the really big money is made in MLM. This big money, however, is made by a very small percentage of people. Breakaway plans are geared for full-time effort. Attrition is the highest with breakaway plans and it generally will cost more to build your business. This is a work program. It takes persistence, salesmanship, and requires the ability for you to train your recruits. Companies which use breakaway plans tend to pay higher commissions. However, the plan may be extremely difficult for most people to duplicate.

3. BINARY. This is a very complicated and hard-to-understand plan. It does, however, offer a simple system that is easy to duplicate. Otherwise, you recruit just two and help them do the same.

4. MATRIX. This plan allows you to build a limited width organization. For example, a 2 X 12 group means two people on your first level, and paying 12 levels deep. Other examples would be a 4 X 5, 3 X 9, etc. This is generally pretty simple and easy to understand and explain. The low volume requirements usually common to matrix plans helps make it a good plan for part-time distributors.

The above briefing only scratches the surface of these compensation plans. For a more detailed description, you may wish to go to: www.mlminsider.com

Even though some of the internet hype may claim that you can make big bucks with only a little work, don’t believe it! With network marketing, as in any other business, you’re going to have to work at it and make some investments if you expect to be successful. To make money in MLM, you will have to work, no matter what company or compensation plan you select!


About the author:
Judy Thompson, a former teacher and business owner, is also an experienced network marketer. She promotes a nutrition company that has an automated support system. For details, go to: http://automaticbuilder.com/333015895/?source=sya505
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The compensation plan is a hugh part of why we join MLM marketing companies. We all want to make money. Every business out there tell you that you can live your dreams if you join thier company. For a few people it is true but for the average person this is not the reality, and the comp plan is a major part of the reason.

For more education on selecting and having a MLM company that will pay you more than MLM minimum wage visit http://masteringyourprimary.com/faybe and learn the truth before investing any more.

Successful Marketing Is Easy Online

(c) Copyright Faye Brown
Internet marketing is the method thousands of people are using all around the world to make money online. They are using their home based business to boost their income through affiliate programs. Affiliate programs are plans where you can get rewarded for promoting another business or site. Basically, you offer free ad space on your site, and for every lead or click you get from people who visit your site, the other site will pay you. This can be extremely profitable if you have a high volume site already.

In addition, network marketing is very easy. Basically it takes about an hour to set up the plan initially. You have to fill out the forms and obtain the codes to put onto your site. If you know how to cut and paste codes well, you should have no problem with figuring it all out. However, if you don’t know how, you might take a little longer. Most affiliate programs will give you free detailed instructions on how to put the code onto your site.

After the code is in place, the rest of the work is easy. You can simply sit back and let the money roll in! When people visit your site and see the ads, they will be inclined to click on them. When they click on them, you will be racking up the extra income.

The trick to really making a lot of money with affiliate programs is to place them in a great spot. If you put the links or ads at the very bottom of the page, most people will not notice them. However, if they are one of the first things visitors see, they might click on them. You should consider color and size of the ads as well, to be sure you are using the best ads for your site. Most affiliate programs will allow you to choose these things.



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Faye's Home Business Ideas

3 Effective Tactics Every Business Should Implement

Allyn Cutts

Copyright © 2005 Cutts Group, llc

3 Effective Tactics Every Business Should Implement

Do you remember your first day as a business owner? You were probably just like the rest of us... pretty darned happy and bit on the proud side. Yeah, back then we thought we could conquer the world. Now we're too busy conquering our own little corner of the world to pay a lot of attention to the rest of the world... unless it's to learn a few tips from successful marketers just like us who have made it big. Tips just like these... that will apply to every market - regardless of the product or service - are a great motivators to try something new. Yeah, you never know when the next idea will be worth a million dollars!

1. Create a Special Offer
A special offer is exactly that... an offer that is special. Normally, customers would not be able to purchase this product or combination of products, and once the products are gone... sorry!

You don't have to go out and order a bunch of new products to put together a special offer. It don't take a whole lot... just use what you've got. Grab a few items that are related, group them together, discount the price, and your customers will be excited to be getting a good deal. Think about it from your standpoint... you've sold three or four items rather than one. Yeah, combination offers are winning deals for everyone!

2. Address the Small Customer Groups
Niche markets are everywhere, right under your nose! Within the customer audience that you serve right now are groups of people who share common traits. Think about it... maybe you have a group who speaks Spanish, a group of teens, and a group of middle class family men and women.

Evaluate these classes of people, and discover the unique needs and desires they share. That will set you up to customize your advertising campaign directly to them. It’s not hard to take your current ads, and make a few changes to adjust to the niches. They’ll be impressed that you understand THEM, and the increase in your profits will be the best thanks you can get.

3. Set Up a Winning Referral Program
Successful marketers develop the ability to turn their customers into advocates. Often, they don't even have to directly ask customers to refer them to others. Their willingness to go the extra wins customer loyalty and support. Naturally, satisfied customers refer their friends and family to the place that will take good care of them.
Quality service and is the first step toward referrals, but you can easily take it one step further. Studies show that every satisfied customer tells three people about you. What would happen with a little incentive added to the picture? Yeah, a lot more. Give customers who refer friends a thank you - whether it's a discount, special gift item, or a simple thank you card - and watch the referrals spiral!
You can get two birds with one stone by implimenting customer surveys. A few quick questions about what the customer does and doesn't like about your product, followed by a request for the names and addresses of friends and family who would benefit from the product, and you're all set to go with the contact information of a prospective customer!



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Who is Allyn Cutts, and why should you care? Allyn has spent over 24 years helping businesses like yours find new customers and increase sales to current customers. Allyn is a marketing and sales fanatic, providing measurable marketing solutions that drive huge results for small-to mid-size business clients. Allyn works personally with clients to design and deliver off-line and on-line direct marketing strategies that focus on metrics and measurable results. You can learn more about Allyn Cutts at www.AllynCutts.com and you can call 610.437.4106 between 10 AM and 4 PM Eastern Time Tuesdays and Thursdays.

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Customer and business partner relationships can make or break you in the home based business world. Make sure you do what you say you are going to. Follow up is so important.

Faye Brown

For an MLM Strategy that shows your business to the masses Click Here

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Have you heard of MySpace, the social network phenomena that has 40+ million members. DirectMatches is built on that principal but gears it for the professional and network marketing audience.

DirectMatches is a free to join, where you can create a profile, network with your primary prospect group and advertise your business. You can also upgrade to take part in the business opportunity.

DirectMatches is the first in the online business and social networking industry to use a multi-matchmaking system that helps people locate everything from business contacts to network marketing professionals. It is the first business and social networking service with a contact management system that operates on a "dynamic basis", where members are able to select from dedicated networking communities.
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List Building – What are You Missing From Your List Building Campaign?

Sean Mize

List Building – What are You Missing From Your List Building Campaign?

List Building is an art that too many people are involved in who have no clue, and are acting like they are elephants with a paintbrush.

They send traffic to lousy web sites, they email their subscribers worthless emails, and then look at people like me, and think, he must be exaggerating when he says he is making $1.00 per subscriber per month.

I understand how you feel. When I first got started online, I thought it was crazy that someone could have a list of 100,000 subscribers and make $1.00 per month per subscriber. But now that I am on my way to a list of that size, and the money per subscriber is consistent; now I am a believer.

So what are you missing from your list building campaigns?

Check these items and adjust your list building campaigns accordingly:

1) Are you sending your traffic to a squeeze page? You must send your traffic to a squeeze page if you are serious about building a list. 2) Are you offering your visitors an irresistible offer to subscribe? Write a free ebook on a hot topic and give it away. 3) Are you sending the free item out fast? And sending them additional, unannounced bonus items? 4) Are you sending your subscribers quality content and only referring quality affiliate products?

Do these things and watch your list building campaign explode.

Are you interested in learning how to build a profitable mailing list? Click here: List Building

Do you want my free book, ‘15 Steps to Internet Success‘? Click here: Internet Marketing Success

Sean Mize is an online author and internet marketer, and produces internet marketing training materials.

Article Source: http://EzineArticles.com/?expert=Sean_Mize
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Sean Mize gives some sound advice on list building. It's all in the list, we hear this from all the internet top professinals. If you own a Home business, you need a list. For a new approarch to list building
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Network Marketing - Is Duplication A Fantasy Or Reality?

Rebecca Prescott

One of the central tenants in the promotional material about
network marketing, is the power of duplication. The story goes
that youll refer 3 people, wholl each refer 3 people, and so on...

This is truly the power of leverage, but the problem is that
most people who sign up for programs have little to no experience
either online or offline in building a business and networking it.
They dont know enough to provide valuable information that acts
as a relationship builder, and most often, they dont have the
skills to set up an autoresponder account or a website.

Most network marketing programs have information on how to
generate leads, but if someone doesnt have the skill-set to
write a good autoresponder series, they're left to rely on the
one the company has provided. Unfortunately, this is often a
series of sales messages, that provide little of real value to
someone starting out. The leads you load up to this
autoresponder series are simply sent a series of letters telling
them why they should buy-buy-buy. And most people have a sense
that they actually need to know a little more about how things
work on the internet to make their prospective business
successful So, the sign-up rate is not going to be particularly
high.

Of the people who do sign up from those emails, how many of
them are now going to be equipped to make the program work?
After all, if they dont start making money in a few months,
they will drop out of the program. And the principle of
leverage wont start to work if people arent being guided or
taught to take effective action. Its easy to take action,
even easier to spend money on poor quality advertising. But
that wont build a business.

A system needs to be in place to develop people into
leaders - to take them from newbie to expert in the shortest
time possible. And its a system that needs to take into
account the fundamental principles of direct sales. The
internet is simply a different form of direct sales, and its
a well known fact that most people wont buy from you until
theyve seen your tips, or other valuable information, seven
or more times.

Having an autoresponder system, set up with newsletter
style emails that regularly keep in touch with your prospects,
is vital for success. It provides several benefits. The first
is that over time, as people begin to see that you are
offering something of real value in helping them get started
with an online business, more sign-ups into your preferred
program will naturally follow. What is more, these sign ups
will have been effectively trained in some of the fundamental
principles and methods that lead to success on the internet.

There are a number of ways to get content for the series.
If youre just starting out yourself, your upline may be able
to help you collaborate on a series of letters. Or, you could
invest in some good quality courses and study them until you
have more knowledge yourself. And, you could of course hire a
writer with small business/internet marketing/network
marketing experience to write the articles for you. These
could then be shared with your downline to get them started.

As well as an autoresponder system, youll need a direct
sales page that ethically persuades people to sign up to
your autoresponder series. There are several options for
creating that sales letter. You could study other successful
sales letters and adapt them to your needs. Or, hire someone
to write it for you. Although this can be expensive, its a
one time investment that you can share with your downline,
by providing them access to your sales copy.

The principle of duplication requires going above and
beyond the sales material the company has given each member.
By investing either time, or money, or both, in acquiring
quality prospecting material, this can then be shared with
your downline to create a truly duplicatable system. Perhaps
all wont follow it, but it will give potential leaders a
chance to really shine.

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Very few companies offer a completly duplicatable system,
because we cannot become the person teaching us, so
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Online Business: All or Nothing

Dan Theta

As I was doing my normal internet surfing one day, I came across a fable by Aesop. It was about a hound who failed to chase a rabbit for dinner. Now while the plot of the story itself may not be of much interest to too many people, the message behind the story sparked a bomb in my head. The hound was just chasing the rabbit for a meal. However, the rabbit was running for his life. And then it hit me; the very necessity of life is what pushed the rabbit to accomplish his goal, in this case to live to see another day.

What does this have to do with working from home online you ask? Well that very message that was behind the story made me look back and think about why I work an online business in the first place and why I pour so much effort into it. For me, I am but a young college student at a prestigious university, trying to get by and survive my rigorous coursework. College is not cheap at all these days and I know my parents poured a ton of money in order for me to send me here. I use my online business to help them pay for my college education, as well as so I can have an income here so I can eat, buy books and supplies, and maybe spend a little for myself on the side.

One could ask why I do not simply get a normal part time job. Well aside from all the homework I have which would make setting time for an outside job a living hell, I like being able to do my work from my computer, whenever I please. That and spending a summer working at an amusement park when I was 15 traumatized me to the point where I have not held a job like that since, but lets not talk about that.

Now where does all this talk lead? Its all about why YOU either want to start an online business, or why you have an online business in the first place. Maybe you just want a more money than what your career is giving you right now. Maybe you want to save for a new car, a nice vacation, or another one of lifes expensive pleasures. Or perhaps you do not want to hold a job period, and want your fulltime income to be from working online. Whatever the reason, it must be a reason you would be WILLING to give your LIFE for. You must put 100% of your effort and power into your online business, and then put more even still. You must FOCUS all of the energy in your body into making your online business successful. If you see your online business as a simple hobby, then you will soon realize that it is a very expensive hobby, and you just might come to realize that it is a hobby not worth keeping if you do not commit your life to.

Your online business is a sink or swim situation. You either put all of yourself into it, or you dont do it period. To quote the famous Yoda: "Do, or do not. There is no try." I could spit out countless more quotes and clichés, but I think I have made my point by now. Once you focus yourself properly into your online business, and you change your thinking into an all or nothing mode, your goals will be accomplished. Run your online business for your life, just like the how rabbit ran for his life.

Visit Dans site to find the best home based business ideas and opportunities so you can work at home

Also you can receive *free* online business tips and a *free* ebook about making money online.

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Posted by Faye Brown

Dan uses a great analogy for online marketing and an Ashops Fable. An online business is not a hobby, but a legitimate business which requires disipline, effort and investment.

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