Some Thoughts on MLM Compensation Plans
In MLM or network marketing businesses, compensation plans are what distributors really want to look into as that is how he is going to earn his income from commissions from his and his downlines’ volume of sales. Compensation plans differ in every organization. It is indeed very overwhelming or even confusing for a newbie to comprehend the big circles and small circles at the first sponsoring or introduction into the business.
Therefore it would be an advantage to sponsor someone who is familiar with network marketing in the first place. However if a newbie is introduced then the distributor has to be patient and slowly familiarize him or educate him with the compensation plan and help him along the way in his new found business. The distributor has to find the right compensation plan that works for him and that can help him earn money. Therefore what’s most important is that he understands the plans well especially on how he can earn his commissions based on his downlines’ volumes and his own volume of sales.
Distributors will always be looking for new downlines to join him in his organisation. But before he goes a step further in roping in his downlines, it is almost imperative of him to master the knowledge of his company’s compensation plans. One will never know when one would meet someone who might have just left another company and is well versed with compensation plans already. How can the distributor be a good leader, exude the type of confidence so needed to influence others into the business if he himself is not well trained in the business yet?
It is not true that people join an MLM business because of a superior compensation plan. More often than not distributors might already know his new downlines as he would like to share his money- making venture with them too. Or they could be his customers who have confidence in his products or services and give him repeat sales. It can be said that it is actually the leadership, influence and confidence that attract new downlines to a good distributor. There could also be that chance opportunity that a company collapses, distributors have a fallout with his upline and there you are, some well trained people waiting to join you in your company. You will never know!
Now that we have set the record straight, knowing your plan and their plan well will bring you one step to closing a new sale or sponsoring a new distributor from another company.
It sounds unethical to pinch downlines from other companies. There is actually no rules that say you can’t really. However be careful not to do this within your company as you might be disqualified or terminated in your distributorship. Some form of competition is healthy but it would be better for the distributor to sponsor new people out of the company. Remember, your downlines might also want to leave you to join other companies too! Then it is time to realize and look into the reasons and improve in areas like leadership qualities, support and motivation that you might have failed to provide them with.
Having said so much about compensation plans of MLM companies , it is then advisable that a distributor invests a lot of time and effort at learning the details of his own company plans as well as other companies’ plans too. It would benefit him a lot to attend as many opportunity meetings as possible to gain more knowledge about compensation plans and other aspects of the business in order to succeed in his network marketing business.
