by Michael Lemm, FreedomFire
reprinted with permission
With companies using their compensation plans as a way to attract people to their opportunity making money is important. The question really is, is there a perfect compensation plan? If not, what must be included to become a perfect compensation plan? What % payout must a company have to their distributors to make them a legitimate company?
I believe the best compensation plan is the one that allows you to build the smallest amount of consumers of the product or service for whatever income will allow you to be financially free.
This means that you want a company that pays out as much as possible. This being said, you have to look at where they pay the most. Is it at the higher levels or lower levels. There are advantages to both….
Getting paid at higher levels means that your people will be making money quicker which means they will stick to the business longer. On the down side, you will not get paid as much where you will have the most amount of consumers, which are the lowest levels.
If you get paid less on the higher levels and more on the lower levels, you need to make sure you are in it for the long run. The challenge is that most people quit after 90 days and about 90% will have quit within 1 year. The advantage is the power of multiplication, where you will have more consumers at the lower levels with the highest payouts. This type of pay plan is often combined with quick start bonuses for people that recruit in large numbers while building something long-term.
Bottom line, it all depends on your what you believe is achievable for you and how long you want to start being profitable. If you are a top notch recruiter and want to take advantage of the poer of duplication you need to go with the second option but you also have to find your super recruiters. On the other hand the first option has a tendancy of keeping moderate people in the business longer but your team will also grow very slowly as most will not be super recruiters. But always keep in mind of how many consumers do you need to have to acheive your desired income… the lowest possible i.e. 400-500 consumers max (distributors and customers) for $10,000/mth. You can adjust the number depending on the desired income. If you need to get more I would suggest you re-consider what you are doing.
I hope this was valuable information for you all and wish everyone great success in what I consider the greatest model/industry out there.
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