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Mlm Compensation Plan Standards
I keep thinking back to something that happened with the first MLM company I joined. The one thing that turned me off and sealed my decision to leave. It was during a Sunday night online team meeting in a webinar. The discussion topic was about using domain names for personal branding. Something I knew the importance of and had been encouraging others to do. I made a proposal to use GoDaddy.com and was going to further mention their affiliate program when the team founder cut me right off. She stated using GoDaddy for domain registration was a bad idea, because after a year the subscription renewal rate went up and was too high. She gave an example of a girl she knew that couldn't afford the $50 to renew her domain after her first year expired. (Note: GoDaddy's renewal rates vary depending on which type of domain you get and which upgrades you choose, plus the team leader was most likely exaggerating because the renewal rates were half that at the time) This absolutely floored me. My jaw dropped and I was left speechless. Which is also surprising because I love to talk. How is it that after a year in Network Marketing she could not afford to renew her domain? I didn't see the problem being with the increase in the rate. The problem I saw was that after a year of working everyday, all day, for a year to build up a sizeable downline, she still couldn't meet the expense to renew her domain name. I thought ahead to the next year I would be having with this MLMcompany and realized the compensation plan was not all it was cracked up to be. I started doing my groundwork on companies and found that it takes just as much work to make a big sale as it does to make a little sale. Why shouldn't I be able to be paid a higher commission up front? If I took all the effort that I had already put into my few weeks with this MLM company and applied it to a company with greater payout. Then I could make in one sale what took me more than 10 with the MLM company I was already with. That was a no brainer. The saying "work smarter, not harder" was ringing in my ears. So, from my notebook full of precious info (I was a professional college student for years, I take good notes) was the piece about what to look for in a company's compensation plan. 1. High upfront commission. Again, it takes the same amount of effort to create a small sale as it does a big sale. Marketing a higher priced item is just as easy as a smaller priced one. Our own second thoughts about our capabilities to market them is what holds us back, there is no lack of purchasers. A larger payout on the front end builds momentum for your business. Multiple small sales = small commissions = burn out. 2. Residual income. This is your retirement fund. This is continuing income flowing from work you already did. This isn't new money from a new sale. This is money that keeps coming to you, even if you don't make new sales. These are the two key points to choosing a compensation plan. Join a company that meets these requirements, and there's no worries about renewing your domain. Article Directory: http://www.articledashboard.com Stephanie Deneke was once a struggling entrepreneur that found the way to success through personal development. For more free information and resource links to make your business a success, view Stephanie's Blog here For eye opening info on online opportunities read |
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