Saturday, September 26, 2009

Am I in the best compensation plan?


It's really interesting how compensation plan's work.  All of them sound good during the presentation and of course they would.  The guy giving you the presentation has been snowed too.  Not saying that they are all bad but there is a broad spectrum from plans that completely DO NOT work and those that are awesome.



Something to keep in mind from the beginning and I know I've said it before.  Most of those that join your Multi level marketing business opportunity will be part timers, and if you've ever been in one you know that the work in the beginning is extremely tough, but if you work it everyday it does get easier.

So doesn't it make sense that the compensation plan should be designed to reward the part timer.  If yours doesn't you'll have a heck of a time getting people to stick around.

Another danger sign is large bonuses with new sign ups.  It sounds good at the beginning but remember that will most certainly pull money from the main compensation plan and a good potion of those that join will be product users only.  So they'll never see those bonuses.

There's a lot more to this one as you might imagine, and I will be writing a Squidoo lens soon that goes over compensation plans, but here's a simple test to get you started.

How many people does it take to make $10,000 a month. Most companies are between 2,500 to 3,500. I have also seen it take as many as 25,000. Is this REALLY feasible? Keep in mind I have also seen it take less than 400.  It's all about the compensation plan and what actions the plan causes in the field.


Chapter 9 of "Success in 10 steps" goes over evaluating companies.  You'll be glad you read it and it definately can't hurt your business.

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