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MLM Compensation Plans

1 - I can do better 2 - Jury's out 3 - Pretty darn good 4 - Splendiferous 5 - Awesometastic (by 19 people)   Your rating: 1 - I can do better 2 - Jury's out 3 - Pretty darn good 4 - Splendiferous 5 - Awesometastic

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Write Blog Posts Using MLM Comp Plan Info

You'll find several dozen terms here connected to MLM compensation plans. Each of these terms can be the basis for a short post on your MLM lead-generating blog. Just read the term and write 2-4 paragraphs about it. It'll probably take you 10 minutes a day, so in 50 minutes, you have 1 week's (5 days) worth of blog posts.

Network Marketing Comp Plan Blogging Points 

What works best is to take one point and talk about it into a microcassette recorder for 2 minutes, then transcribe. You will have a blog post in the spoken language.

Alternative: Write your thoughts about a point directly on paper. When you're done, be sure it sounds like the spoken language, then post it to your blog.
  • Advantages/disadvantages of each MLM compensation plan
  • Adversarial position/red personality - that "my way or the highway" person who thinks you MUST do everything their way!
  • Aussie 2-up - lots of government scrutiny, lots of failure
  • Can an average person work this compensation plan? (90% of everyone hates to sell or be sold to.)
  • A lot of people think all MLM comp plans do the same thing. Fact is, they're all different, and you need to understand the differences.
  • How each comp plan drives the behavior in the field.
  • Binary - describe this plan, how it works, and it's pros & cons
  • Breakage - What is breakage and how do companies hide it from prospects and reps?
  • Breakaway compensation plan - build wide. How it works, pros & cons, how it got started, what type of companies use it.
  • Can everything you've build be legally taken away from you? Explain how.
  • Changing compensation plans - how MLM companies steal your money.
  • The circles on the blackboard - oh, so mesmerizing!
  • Compensation plan coding - how it works, how you spot it, how it affects you.
  • Why compensation plans are so darned complicated!
  • The comp plan that destroys your training ... and how.
  • Compensation Plan v. Outstanding Product. Who wins? Who loses?
  • Comp Plan Compression - why this "logical" company proposal has such a devastating effect on your income.
  • Your company and your master distributor - do you understand the fallout from this conflict of interest?
  • Big, big, important question: Does the company own its own software? If not, head for the hills!
  • Dog & cat reps - how & why does THIS oddity happen?
  • Does your comp plan COST you when you recruit a big player?
  • Downline builders - whose list are you REALLY building ... and what is your profit potential?
  • How to do your due diligence online.
  • An easy mathematical equation to accurately evaluate any MLM comp plan.
  • How do you compare and evaluate a "levels" comp plan v. a "volume" comp plan?
  • A history lesson - the evolution of MLM compensation plans ... and why some companies are still in the Neanderthal age!
  • Comp plans promoted by fear of loss - good or bad and why?
  • Matrix compensation plans - how to use your precious front-line positions.
  • What do state attorney generals evaluate when they're looking for a company to hang?
  • How a company gets locked-in to a bad compensation plan.
  • How do you figure the actual commission payout of any compensation plan?
  • How many reps do you need to earn $10,000 a month?
  • How to spot compensation plan disincentives that will kill your recruits.
  • How to spot illegal money schemes.
  • 95% of all MLM reps are part-timers - how to spot a comp plan that will never be profitable for a part-timer.
  • Isn't THIS cute? Does your comp plan pay your sponsor for the work YOU do?
  • Do you understand the magic of 10 MLM retail product customers?
  • Company management chose this compensation plan for a reason. How to figure out their thought process ...
  • Different comp plans require a totally different marketing plan on your part to maximize your profit. Explain, please?
  • How to estimate company overhead and the effect it has on YOUR profit potential.
  • Part-timers v. full-timers: how does this compensation plan reward each one?
  • Company payout ratio v. inverted payout ratio ... you'd better understand this and be able to spot it, or you'll cost yourself a lot of money.
  • Why certain personality types are doomed to failure when they join certain compensation plans. You'd better understand how THIS works!
  • Phantom bonuses! They SAID you'd get that Super Fast Start Leader's Bonus - why isn't it in your paycheck?
  • Why you must place your people strategically in certain compensation plans. If you don't, you will probably fail.
  • Your company Policies & Procedures - do you know the key words that mean you can NEVER retire?
  • The MLM Powerline - why it's so popular, and it's REAL, hidden purpose.
  • If the price of your product is 2 or 3 or 4 times the cost of the identical product at Walmart then ... Houston, we've got a problem!
  • How to figure out if a comp plan requires a "recruit, recruit, recruit" strategy ... and how to predict the future of that company.
  • IMPORTANT key: what is the retail commission you get on a product sale?
  • The "Secret Spots" companies - how they work and how to spot them.
  • What "spillover" has to do with whether or not you can build a profitable business.
  • The "Stairstep Breakaway" compensation plan - how it works, pros & cons.
  • Should you search out an upline heavy hitter guru to sponsor you? It's usually a fatal mistake for your income, and here's why.
  • Do you understand the various volume requirements in your compensation plan and how this is one of the primary hiding places for comp plan breakage?
  • The unilevel comp plan - how it works, pros & cons.
  • What pay plan entices your upline to steal your people, and how?
  • Which pay plan promotes NOT helping your downline, and why?
  • Which pay plan promotes crossline sponsoring?
  • Which pay plan leads to big, big front-end loading?
  • Which pay plan promotes retailing product?
  • How do some pay plans STOP production?
  • Wide v. deep - what's the best way to build your business, pros & cons of each?
  • Key question to ask yourself: would you buy this product if there was NO business opportunity attached?
  • What is the BEST compensation plan?
  • If a company only accepts payment by money order or wire draft and doesn't take credit cards, what does THAT mean?
  • Where does your income get cut off in your compensation plan?

How To Get The Answers 

If you don't know what to say for some of these bullet points, most of them are answered in this 60-minute audio:

Thank you,

Richard Dennis

New Guestbook 

narayan prasd

in binary how the profit can be shared to unlimited level? compensation part mebe 30% maximum , then how that could be distributed to equally all the upline sponsors ? if the level is limited, then how many times the weekly celing limit will be repeat? top achievers gain only by residual ? or by compesation ?

any suggestions?

narayan prasad , bombay, india

Posted February 09, 2008

aliveworldwide

This is a great lens with loads of fantastic information! I wish you had some links so we could follow up with all you ideas! 5 Stars!

Posted January 12, 2008

Vern

Hi Richard,

Guess what? I stumbled onto your website and it is totally awesome. The one thing that really catches my attention is your profile.

"Never Ever Quit" ....

I feel so blessed by your story. Let's keep going and keep profiting.

Cheers,
Vern

Posted September 12, 2007

manuel Recinos

Posted September 07, 2007

LimuGirl

Hello Richard!,
Thank you so much for sharing from your storehouse of Wisdom. You are my All-Time favorite teacher.I wanted you to know, I do not see a link where it says audio. I hope you are able to put it up soon. Love Carmen!
P.S. Your calls are great. I learn so much every time. Bye

Posted August 25, 2007

jstmars

So many points to cover... 60 minute audio you say...
It's a good thing we talk about this in the skills calls every week, or a person might have to listen to the 60 minute audio over and over several times to comprehend all those points to a tee.

Posted July 21, 2007

 
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rden

About rden

I discovered MLM in 1977. Seventeen years later(!), I got my first big MLM profit.


Moral of the story? Never, never, never quit.


You can read about MLM tools, training, recruiting, team-building, relationship-building, and lead generation several times a week at my mlm mentoring blog.


 

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