Understanding the two ends of the MLM reward spectrum
Posted May 22, 2009on:
Some plans are easily understood….
The compensation plan of a MLM company is a key factor considered by potential signups. It is assumed and agreed that it would be rarely that a plan is fully understood by a prospect. However, there must be at least a basic understanding of the plan and its reward structure.
At the two ends of the mind boggling variety of plans would be those that:
a) Reward the distributor very richly, paying huge commissions on the sales of products whose value may not be that easily determinable, and at the other end
b) Reward the distributor reasonably, and a product that provides clear value to the end user
Others may be a little or lot more complicated.
Plans of the (a) type motivate the distributors to push the products hard. Often to their near and dear. My personal feeling is that rarely would this last. I am convinced that no sustainable business can be built up using a plan like this.
The Plan (b) approach is what I think has business sense. No business can go on for long without providing value. And if value is provided, there should be sufficient repeat sales to keep the business flourishing.
Score A and the compensation plan falls into the (b) category. I can see, and can explain the value that is being provided to a potential distributor very easily.
The compensation plan is one thing that all potential distributors should look at carefully before making any decision to join any MLM opportunity. Yes, it may seem a little intimidating, but if the basics cannot be explained and understood, then you’ll have a good idea on how it would be difficult for you to spread on the message!
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Thank you for reading this post.
All the best in your journey of success!