What is the Best MLM Payplan?

Before anyone starts an MLM business, one should consider the various compensation plans available from the 1000's of MLM Companies. It is important to know when, how much, and how often one would get paid. There are numerous compensation plans available, however only the most important will be covered in this article.

The easiest compensation plan to understand is the uni-level pay plan. There is unlimited width on the first level and generally 5 to 6 levels in depth. Being easy to understand it is a popular pay plan with MLM Companies. You may get paid for instance, 8% of the volume of everyone in your downline thru 5 levels.

Teamwork is the key to any successful MLM venture. The very nature of the MLM business model demands it. The matrix compensation plan accomplishes this very important componenet. It limits the amount of people you can have on your 1st level. This forces everyone to help their downline.

A very effective compensation plan that allows the distributor to make huge chunks of money quickly is the 1up or 2up plan. This compensation plan works by passing UP the first sale or in the case of the 2up plan the first 2 sales. Let's say that the product cost is $150 of which $100 is paid out in commissions. If you just began your business, your first sale would result in a $100 commission to the next nearest QUALIFIED rep. The Qualified rep is the one who has already made their 1st or 2nd sale. This payplan can literally pay to infinity, and much larger chunks of money can be made upfront.

Some very successful companies use the binary payplan. What happens is that you get 2 legs to build.....stacking people one on top of another. This seems great, using the concept of teamwork to the maximum. The problem lies in the fact that you generally get a lot of help from your upline to build the 1st leg......but NO help to build the 2nd. Since the legs must "balance" against each other; for instance 6 sales in leg 1 and 3 sales in leg 2 to get paid......you get a lot of sales in leg 1 and no sales in leg 2 which means NO money paid to you. You guessed it....a lot of people quit this quickly.

I only mention Straightline Powerlines because this MLM compensation plan is gaining in popularity. It seems so attractive.......just one straight line down, each distributor on top of another. Wow......what teamwork! The problem is that the requirements to get paid are so outrageous, you make very little money. The author STRONGLY discourages you from participating in one.

A long time ago......in a different era of MLM compensation plans is the stairstep breakaway plan. Just because something is old doen't mean it isn't profitable. Some of the largest checks in the industry have been made using this plan. Checks of 2-300,000 dollars monthly and larger are not uncommon. You get paid a progressive percentage based on your group and personal volume. When someone attains the same level as you, they breakaway and you make a percentage of their group volume thru multiple levels. Call me a dinosaur, but I know real money when I see it. I wish this type of MLM compensation plan was more prevalent than it is. In my opinion, this is the Best MLM compensation plan.

I know sometimes it is difficult to decipher different MLM compensation plans. Use the information here as a primer to make your very important decision.

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