There has always been alot of debate on who has the best comp plan. In this blog I am going to disclose what I think are the best comp plans based on skill-set and what I have seen after spending 4 years in the industry.
I'm only going to talk about 3 comp plans as from what I can see, most all the companies launching today are implementing one of the following. I will give you the pro's and con's of each pay plan. Before I jump into comp plans its important that your company offer a Fast Start Bonus for the first 30 days. This is critical, as your newest distributors who may have never done network marketing need to get their investment back quickly. It's not fair to bring people into a business where it takes 20 people in their downline to cover their monthly autoship. If companies got this, which most do, they can retain distributors at a much higher level.
Unilevel - Personally, I like Unilevel and have my best success in a unilevel, but they generally will only work well for people like myself. In a Uni-level pay plan there is no forced positioning. You can generally build it as wide as I want, and most distributors will not benefit from any activity above them, only below them. This probably would have worked alot better in the days before the internet, but now with so many programs out there allowing you to position yourself good, this is a tough build. I would only recommend a unilevel to a pro networker. The average guy, will always have difficulty here. Out of the hundreds I have recruited over the years, I have only seen a handful be able to build a unilevel. There are now 3 leg uni-levels, but still usually don't get the penetration for your new guy. The advantage of a uni-level is better pay outs overall as you get paid on your entire group volume. Disadvantage, you must build the entire thing yourself, unless you get a sponsor who is willing to give away a few people and help you build. (A capitalist pay plan)
Forced Matrix - This pay plan has become very popular lately, especially on the net. It's the WIFM pay plan "What's in it for me?" This pay plan works something like this: You have 3 people on your first level, 9 on your second, 27 on your third, and so on. This system allows for spillover. Once the matrix gets filled the people have to go under you. There is nowhere else for them to go. I like this pay plan a lot as it creates lots of synergy. The downside is that this pay plan generally attracts an individual who is more lottery minded, so you get a bunch of people in the matrix who aren't going to do much of anything and this is why most matrix's collapse over time. No reward for those that want to build big. And if someone gets lucky, they can get a check for doing practically nothing. (A socialist pay plan)
Hybrid Binary - I've never really been in a hybrid binary until recently, but I really like it. Here is how it works: You have 2 legs (a weak side & a strong side). You get paid on the volume of your weak side. So if you have 1 leg doing $10K per month, and the other doing $20K, you get paid on the $10K. Some of the newer ones I have seen are paying out up to 17% to infinity on your weak side. What does that represent in dollars? Well lets say you had $10K on your weak side and you were getting 10%, 10% of 10K is $1K. If you had $20K you would be getting $2K, $50K = $5K and so on. As you can see this is pretty easy to understand. The hybrid aspect of this pay plan is what I really like. Say for instance you sponsor someone and they end up on your strong leg. You still can make money on that strong leg, because you get what is called a check match of anywhere from 25% - %100 of that distributors monthly residual check. So let's say you sponsored 5 people who were all earning $500 per month and you were getting a check match of 100%, you would get an additional check of $2500 per month, just off the check match. I can dig deeper on hybrid binary, but I won't as many start to get different outside of what I have just described. This pay plan will work for the average guy, because it will allow for quick growth like a matrix "spillover" and it will also promote activity, "check match". The only disadvantage is you are not getting paid on the overall volume like you are in a forced matrix or unilevel. But unilevel's are difficult to build and forced matrix's don't force behavior. So today, I would run with a hybrid binary so you get the best of both worlds. Spillover and forced activity. (The Capitalist meets Socialist Pay Plan)
If you would like one on one training to grow your mlm business visit my website at http://www.johnlowery.biz
No comments:
Post a Comment