Analyzing Your Compensation Plan

Have You Been Paid Yet?

Presented by: Frank AndresFounder of StopStrugglingToday.Com

In Networking Marking there are many different types of

compensation plans

Some are very straight forward while others

(most) are clear as mud

Since your “Comp plan” is the major factor in

determining your profit potential, it is VITAL

to make sure it’s in your FAVOR!!!

There are 4 key questions to ask when analyzing any MLM

compensation plan

Each question brings you closer to understanding the

profit potential plus what you have to do to make money using that

compensation plan

Question #1

How many people do I need in my organization to make

10K per month?

The reason this question is VITAL.It answers the question of how

“hard”you will have to work in order to

reach your financial goals

Employers that pay the most moneyare the most sought after!

Shouldn’t it be the same with MLM Companies ?

It makes sense that you would want the comp plan that pays

the most moneyfor the least amount of work

When put to the test MLM comp plans vary drastically!

To achieve a monthly income of 10Kthe industry average is about 2,800

I have found plans that range from

(high) 28,000to

(low) 100

The Best Comp Plan Is:

The one that produces the highestincome with the least amount of

people

Don’t be fooled into believing differently!!!

Question #2

What will I get paid if I bring $500 in revenue

into my business each month?

In a traditional sales jobcommissions

for revenues generated earn20 percent to 50 percent

In some network marketing comp plans

you can go into the negative

For example, I have friends that were with Excel Communications, it cost them $100 dollars per month to

produce $500 in revenues

I only mention this because some companies still use that

business model

In most MLM comp plans, $500 in revenue will result in ZERO

commissions!!!

In a few, you might earn 4 - 8 percent commission

How much did you earn last month?

In companies that are more streamlined and modern, it is

possible to $50 to $250

Aren’t these the companies we should be looking at when

considering an MLM?

How Much Are You Really Earning?

How long do you think a new distributor will stick with you, if

they’re losing money?

If people are not paid, then they won’t stay!

They can’t AFFORD to!!!

Question # 3

To have my products paid for, how many customers will I need?

It all comes down to retention.

If your new recruit can’t break even quickly

then they won’t be around very long

Most people enter this industry “with the urgent need”

to earn additional income.

If your companiescomp plan doesn’t provide

a “quick break even possibility” then they will simply quite because

they can’t afford it.

A Total Fail would be any company that requires 20 customers

A company with below average scores will require ten

A good Company should only require a maximum

of 4 Customers to pay for monthly auto ship

I calculated the numbers from a handful of the Top Network

Marketing Opportunities and what I found shocked me!

These Top MLM companies took between 8 to 12 persons

to break even

WOW… how much of your business volume is going to just paying for

your products?

Question # 4

Are there loops, hoops and other traps are built into the

Comp Plan?

So your plan passes the first 3 criteria! Yeah, show me the money!

Not so fast, make sure to read everything you can about your

chosen company

Read the fine print as well as the charts and graphs

The fine print will reveal what you have to do to earn anything

Look out for Hoops and Trapsdesigned into many comp plans

Ask questions of your sponsor and keep asking until you have answers

that are understandable to you

This is, after all, your future.

StopStugglingToday.Com