Types Of Compensation Plans Used in Network Marketing Industry

There are five types of compensation plans used in the Network Marketing industry, with many variations of each. There is probably no one plan that is perfect or right for everyone at every time. What may be the best plan for you today could change due to regulations, your experience in the industry and/or the type of product, even new technology. And, it’s those variations that can make the difference.

Let’s take a look at the 5 different types of plans in their most basis forms, they are…

 

  1. Stair Step Break A Way {Board Breaking etc)
  2. Uni-Level
  3. Matrix
  4. Australian
  5. Binary

 

Most new aspiring network marketing business owners always ask, which of these network marketing compensation plans is best. There is no one sentence that fits the answer to this question. It depends a lot on your personality and what you want to achieve from your network marketing business. The thing to remember is that, apart from retail profit where applicable, a network marketing compensation plan pays you for a combination of product sales and sales management. So if you are more of a traditional salesperson who can move tons of products, it may be advisable to go with the company that pays more for product sales than for managing sales teams. If you really want to make it big in network marketing, study the compensation plan of any company before signing up.

Online Marketing: Make sure the company policy allows you to utilize the internet as a marketing tool and they must have a system in place that will help you do that, such as your replicated website, online payment system, online product delivery system, etc. People are utilizing the internet as their main marketing tool because of the automation on the internet that has allowed a much more consistent method of following up.

The only reason why some companies don’t accept online marketing is due to people who utilize it to spam and that can give a very bad reputation not only to the distributor but also to the company you’re working with.

In conclusion, the best company in network marketing is the one that has a realistic payment plan, which is a compensation plan where the incentives given to members are achievable by the company through their product and services. You must also take notice of some of the points listed above to make your choices.

 

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