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    the full idea about mlm marketing,you must read if you want to learn

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    DXNBOZY
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    عدد المساهمات : 6
    تاريخ التسجيل : 04/08/2010

    the full idea about mlm marketing,you must read if you want to learn

    مُساهمة  DXNBOZY في الخميس أغسطس 05, 2010 6:09 am

    affraid Network Marketing Compensation Plans

    What You Need To Know & Why Choosing The Right Compensation

    Plan Is Critically Important To Your Success!

    IF YOU’VE BEEN RESEARCHING DIFFERENT COMPANIES’ (YTB, TRAVERUS, WORLDVENTURES, GRN), YOU’RE PROBABLY FEELING A LITTLE CONFUSED RIGHT NOW. YOU’VE ALSO NO DOUBT NOTICED THAT EACH COMPANY HAS A DIFFERENT COMPENSATION PLAN, WHICH THEY ALL CLAIM IS THE BEST IN THE INDUSTRY. SO, YOU’RE LEFT TRYING TO FIGURE OUT WHAT MAKES ONE COMPENSATION PLAN BETTER THAN ANOTHER…….

    This is a very common concern / question, especially if you’re looking at this industry for the first time. Don’t feel bad though, most individuals involved in our industry only understand about 50% of the compensation plan of the company they’re with, let alone the compensation plans of their competition or other MLM companies’ in general.

    While a company’s product is clearly important, it’s the compensation plan that will actually tell you more about its long-term viability, as well as, offering you a clear picture of the intensions of the owners / executive officers. A quality management team, whose pursuit is to build a solid long-term company, will design a compensation plan so that both novices and experienced MLM professionals can succeed in their business.

    You need to understand right now, that executive management teams and the owners of Network Marketing / MLM companies’ design compensation plans to do one of two things:

    1.) They design it to strongly favor the owners and the reps get a weak, compensation plan.

    2.) OR, they establish a partnership with the distributors/reps, creating a win/win scenario.

    PUBLIC vs. PRIVATELY OWNED, WHICH IS BETTER & WHY?

    Inherent to public MLM companies’ is the fiduciary responsibility to financially reward the share holders first (The owners are of course large share holders), so in these cases the independent distributors are not paid as well as they would be in the vast majority of privately held companies’. Two examples of companies’ in the fields of nutrition and travel that have lower paying comp plans because they’re design to be inherently owner / shareholder leaning on profits would be: Pre-Paid Legal, Herbalife, USANA & YTB. All reputable MLM companies, but their compensation plans are not very lucrative for their average distributors. So, the objective in selecting desirable network marketing companies, is to discover opportunities that offer a product you can get excited about sharing with friends / family. Also, the company needs to have a minimum of a 50/50 split, of the gross revenue between the owners and the independent distributors. If the company says that it has a 50/50 split ratio, check to make sure their statements are accurate. TO WATCH A DETAILED VIDEO OVERVIEW ON PUBLIC VS. PRIVATELY OWNED: CLICK HERE

    LOOK FOR COMPENSATION PLANS WITH LIMITED BREAKAGE

    MLM compensation plans are most often stated in terms of “levels of pay”, having to do with organizational structure, or layers of distributor positions under you in the network of members. One key element to examine is the term “Breakage”. Some MLM / Network Marketing companies’ trying to be slick, will use wording such as “you can earn up to 75% on your overall volume”, while in reality this doesn’t take into account the computation process of breakage. Simply stated, breakage results in generating extra revenue for the company and puts less in your pocket. It is recommended that you seek companies with limited breakage compensation plans.

    LOOK FOR NUMEROUS INCOME STREAMS WITHIN THE COMPENSATION PLAN

    * What’s The Bonus for selling the standard enrollment product relative to its cost?
    * What Type of Fast Start Bonus program does the pay plan have?
    * Does the Pay Plan have a Strong Front End & Backend to it, or is It a Matching Bonus Design?
    * If You’re a Builder, or Plan on Becoming One, Make Sure The Company Offers “Life Style” Monthly Bonuses (House, Vehicle, Travel, Medical, etc…), For Upper Leadership. This is a Very Important Item Since it Can Be As High As $3,000 to $6,000 a Month, which will be between $30,000 to $60,000 a Year in Additional Income on Top of The Normal Compensation Plan formulas. Every Good Company Will Have This in Place!

    And of the favourite arguments of Traverus agents is that they pay a lower initial signup fee, and are open in more countries. OK … then you just didn’t get it.
    # How Strong is The Residual Income or Back End of The Pay Plan? The Back End of Any Compensation Plan is The Most Critical if You’re Truly Interested In Attaining long-term Financial Freedom. Don’t Get Distracted by Quick Front End Cash, Commonly Referred To as “Flash Money” in The MLM Industry. These Plans Rarely Allow The Average Person To Every Achieve Financial Freedom Through True Residuals. Instead They Leave The Rep on a Perpetual Hamster Wheel Always Having To Personally Sponsor New Reps to Make The Bonuses. If the Compensation Plan is Heavily Front End Loaded With a Weak Back End, You’ll Never be Able to Take Your Foot off the Gas Pedal, Since You’re Check Will Start Getting Smaller the Minute You Do!Marketing Compensation Plans and Terminologies:Generally the pay plan type describes the structure or design of the desired network of member participants. Each compensation plan has its inherent benefits and short comings.

    BINARY

    - This plan has been voted as the top compensation plan (easiest to build, quickest payout), design throughout the industry over the last 9 years by MLM INSIDER & NETWORK MARKETING LIFESTYLES MAGAZINES. Many of today’s largest and quickest growing MLM companies utilize the Binary (MonaVie, Agel, WorldVentures, etc..). The Binary plan generally pays out considerably more to the average distributor than most of the other models we’ll discuss, but there are exceptions to every rule that you should be aware of.

    For Instance: USANA Health Sciences (an outstanding manufacturer of nutritional supplements), has arguably the worst “Breakage factor” inserted into any Binary pay plan within the industry that I’m aware of. USANA’S Binary is also one of the oldest Binary’s in existence today. Our recommendation is to take the nutritional supplements, but skip getting involved as a distributor. This company definately has a pay plan to avoid, if you’re goal is to make significant money in 2 to 4 years. Since USANA opened its doors in 1992, they’ve only had 1 distributor consistantly break the MILLION DOLLAR yearly earner mark and it took that particular distributor nearly 12 years to do so. In stark contrast MonaVie (Note of interest: MonaVie’s Founder was a Vice President with USANA until 1998), WorldVentures, Agel and other newer Binary pay plan companies have distributors breaking the MILLION DOLLAR yearly income mark in less than 24 to 36 months!

    USANA’S extreme “breakeage factor” is based upon a very low $1,000 per week maximum payout per business center, so it’s not a true 2 leg infinity Binary, since USANA also promotes opening with 3 business centers, which subsequently forces you to focus on 4 teams’ / legs rather than only concentrating on 2, which is the real power behind a true 2 leg “infinity” Binary. What’s even worse than having to run multiple legs, is that USANA’S “breakage factor”, flushes any volume over 5,000 points per business center leg per week, and that’s about as bad as it gets! Because of this significant breakage factor, your upline or personal sponsor won’t be sending any “spillover” enrollments your way since they wouldn’t be compensated on any of their activity after the 5000 point weekly threshold each week. The average $100,000 plus yearly income earner with USANA is forced to work 6 to 14 business centers!!!! Some of their top earners work as many as 18 different business centers.

    A Binary Design That Rocks, will only require that you build 2 teams / legs and there won’t be a “weekly” or even “monthly” flush of volume points. Working to balance your 2 legs should be your only significant challenge in building a Binary for maximum earnings potential. One of the major advantages of a true infinity Binary, is the potential to receive “spillover” enrollments generated by your upline on your shared or common leg. Make sure there’s also a strong backend component to support long-term residuals and that the pay plan is not just front end money based only on the recruitment of new reps using large product order enrollments, otherwise known as “front-loading” within the MLM industry. Front-loading is used 99.9% of the time by nutritional MLM companies that promote high initial orders to secure higher discount pricing.

    If the Binary plan has a solid front end (weekly cycles based on new product sales by your team), as well as, a solid back end (supported by loyal customers monthly re-orders), it’s likely to offer you the greatest earning potential of any compensation plan within the MLM / Network Marketing industry. ***Some companies are now using Binary Hybrids (combining a Unilevel aspect with a Binary), but this usually limits front end payout.

    BINARY PAYOUT CAPS & REMOVAL OF VOLUME (What You Need To Look For)!

    Make sure the Binary compensation plan has a weekly payout cap of no less that 50%, and no more than 70%, combined with a banking system. Product sales volume / points should not be removed (flushed) weekly or every month, but instead at the 180 day (6 month) to 270 day (9 month), threshold. A pay out cap of 50% to 70% and 6 to 9 months retention of volume from the day it is generated is more than enough to ensure a huge pay out to you, if you choose to work the business. These pay plan items will ensure the long-term financial health of the company. If you find a Binary setup like this, that also has a product which costs less than $100 a month to stay fully qualified & you can get excited about, you’ve hit the mother load, all you need to do is go to work!

    Our Favorite Binary & Product is Offered by WorldVentures Travel

    This impressive company has ethical ownership with extensive MLM experience and an executive staff that’s hard to match. WorldVentures also has a very low start up cost (less than $400.00) and a very low distributor attrition rate (MLM industry Attrition rate average is 60% to 70%), as well as, offerring a very low monthly overhead of under $40.00. WorldVentures reached the top of our list for the following reasons:

    Unique Dream Trip travel club membership product and booking technology in the market place

    Complete start-up package for under $400.00 and only a $40.00 a month operating overhead for the travel club and business membership fees. Enroll 4 people = FREE MEMBERSHIP!

    $3,000 Monthly Home Allowance & $1,500 Monthly Vehicle Allowance for leadership

    Travel Point Program allows business builders to travel for free!

    Dr. Charles King selected WorldVentures as one of his Top 10 MLM Industry Growth Picks for 2008 & 2009.

    WorldVentures 3 year track record – Since launching in late 2005, generating $15,000,000 (15 Million), in sales 2006. In 2007 the company jumped to $50,000,000 (50 Million), in sales and WorldVentures is on track to significantly break the $100,000,000 (100 Million) sales mark for 2008. Companies that have broken 100 Million sales mark in only 3 years, have gone on to be giants within the MLM industry.

    Company Leadership – CEO Mike Conway (Travel Industry Guru), twice named “Airline Person of the Year” since 2000 by Travel Agent Magazine. Mr. Conway, Founder of American West Airlines. Built American West to a Billion Dollar Company with 15,000 employees faster than any other Airline, just 5 short years. Mr. Conway has also served as Vice President with Continental Airlines and CEO of Air Jamaica Airlines. No other MLM Travel company has a travel industry expert at the helm, which is a critical component for legitamacy and longevity.

    Company Technology – Daniel Ko, Chief Technology Officer (CTO) – Co-Creator of Hotmail.com, which was later sold to MSNBC for 400 Million! Founder and CEO of QIXO, the first travel meta search engine. Since 2000, QIXO has received much attention from the media and public, and has serviced millions of customers in the travel space. Prior to 2000, Mr. Ko was also the president and founding member of Patheo.com, the leading web-based consolidator airfare booking engine. Mr. Ko has a B.S. in Applied Mathematics from Caltech and J.D. from Stanford Law School.

    Major Industry Coverage – WorldVentures has been profiled by both “Your Business At Home” and “Success From Home” magazines, which are distributed through Barnes & Noble, and other major newspaper and magazine outlets.

    If you’re wondering why we selected a travel product, it’s really very simple and purely mathematically driven for top dollar earnings and probability for success. Consider that an amazing 43 cents of every dollar processed online is spent on travel, nothing else comes close to peoples interest in either taking a cruise or traveling to an exotic location! “Dream Trips”, offers discounted exotic travel packages and has already developed a big fan base in our current sluggish economy. Everyone still wants to travel, they just want the best price, so Dream Trips meet this need perfectly.

    Another important item to consider if you’ve only been active in nutrition MLM’s…… The total combined sales of the nutrition industry have yet to reach 1 trillion dollars yearly, while travel grew by more than 1 trillion in just one year (2006 to 2007), and is now well over 7 trillion dollars in annual sales. That figure is estimated to reach 14 TRILLION per year by 2015! Additionally, there are only a handful of travel MLM companies (less than 3 of any signifigance), so the competition is almost non-exsistent numerically speaking.

    Now compare this limited Travel Industry competition discussed above to say a skincare (Mary Kay, Avon, Bueati-Control, Arbonne), exotic juice (Xango, Zrri, Noni, MonaVie) or general nutrition / house hold product companies, there’s literally thousands of them within the MLM industry! Plus the vast majority of these companies autoships (required monthly orders) cost in excess of $225.00 dollars. In a tight economy $225.00 dollars a month (plus shipping costs), for supplements / juice is a big overhead for the average person to swallow and this expense doesn’t even take into consideration any monthly retail / sales requirements.

    THE ADVANTAGES TO BUILDING A TRAVEL BUSINESS ARE CRYSTAL CLEAR (43 CENTS OUT OF EVERY DOLLAR SPENT ON THE INTERNET IS TRAVEL RELATED).

    MATRIX

    - This plan is commonly referred to as the “Black Sheep” MLM Compensation model within our industry for good reason. Generally members build for example a 3×9 matrix, which consists of three (3) positions, or legs, directly under you on your first level with nine down in each leg. Taking the “Breakage” factor discussed above, if people drop out, which is normal (attrition), then you earn less on your Matrix unless the plan allows stipulations to compensate for this such as the ability to fill in the cancelled positions with new members. Remember, Breakage puts money back into the companies’ pocket, not yours! VERY FEW, AND I MEAN VERY FEW companies survive long-term with this compensation plan…. Besides the one long-term company mentioned just below, there’s a new travel company trying to make it with this plan. All I can say is good luck, cause you’re gonna need it!

    The Definition of a Matrix compared to other MLM Pay Plans is very simply explained as:

    A.) Binary: Limited width and unlimited depth (MAXIMIZES TEAM BUILDING – SPILLOVER)

    B.) Unilevel: Unlimited width and limited Depth (NO SPILLOVER, YOU’RE ON YOUR OWN)

    ▼ Then The Bottom Feeder of All Compensation Plans▼

    C). Matrix: Limited width and limited depth (Do yourself a favor & stay away from this plan)

    Logical Analysis indicates: Why would you want to be limited in getting paid on width and depth both! Matrix restrains you from every direction. Why would anyone put themselves in a restrictive box of a pay plan?

    People have made millions thousands of times in both the Binary and Unilevel compensation plans. Most do it in 1- 3 years if they’re serious builders. But we never hear about Matrix lovers making a million dollars… There are a couple, but it took them 7 – 10 years in one of the bigger old Matrixes formed in the 1980′s, which was Melaleuca! Melaleuca’s a good company with great products, but its pay plan (5×7 Matrix), leaves a lot to be desired.

    Unfortunately Over 87% of Matrixes are used in scams and have made the Matrix generally considered “Bad Breath” by most Network Marketing professionals. See: http://www.matrixwatch.org

    Most serious Builders that were foolish enough to join a Matrix walk away from a Matrix the day that they sign up a heavy hitter! The Builder wants the Big Hitter to be put on their first level where they could generate big $Dollar Sales from the Builder. But, since the Builder filled up his Matrix with those who rushed in to get in on the early spill-over… disaster hits!

    The Heavy Hitter goes on the Builders last level of the Matrix. The Builder never gets a cent of the money Mr. Big Hitter generates. Mr. Builder leaves really, really mad.

    The OFT – (Office of Fair Trading) in the U.K. has branded all matrixes as a Scam and not suited for MLM – Network marketing. See paragraph 7 in the following OFT warning! So forget international expansion into the UK, which represents a significant market place in the global economy.

    See: http://www.stirling.gov.uk/index/business/tradingstandards/ts-scams.htm

    STAIRSTEP-BREAKAWAY

    - Offers one of the lowest success ratios/percentages on payouts as a rule, and often times forces the independent distributor to invest additional monies into product purchases in order to qualify for monthly income. This model is ancient and outdated, plus it has significant disadvantages almost to numerous to list. Companies still using this type of model are usually 15 to 30 years old (Amway, Nu-Skin, Beauti-Control, Herbalife…. good companies’, bad pay plans). No sophisticated network marketing builder will go anywhere near these ancient companies’ / compensation plans, since what can be accomplished in 3 years with a properly formulated Binary or Unilevel will take 9 to 13 years to create with a StairStep-Breakaway model. I won’t go any further in depth here since we’re strongly recommending that you avoid this compensation model.

    UNILEVEL

    Unilevel pay plans are certainly not the best. This pay plan may have the WORST ability for YOU to earn with it. Should You Avoid it? That depends on how much money AND time YOU have to make it work. You see, this is the grandfather of all pay plans and typically is the simplest in that it allows a person, a distributor for a company, to sponsor as many people as desired and therefore go as wide as desired. What do I mean by going “wide”? I mean that if you sponsor 27 people you can be their direct sponsor and essentially have them all directly underneath you. Companies using Unilevels today (YTB (Your Travel Biz), Send Out Cards, Tahitian Noni, XanGo, Zrri and ACN … All good companies, but they have poor success records for the average rep…. The only company with a reasonably attractive UNILEVEL compensation plan in our opinion is Free-Life, but we don’t like their product, since it’s another “juice” and the MLM opportunity around specialized juices is quickly disappearing due to mainstream production of exotic juices entering the local grocery store at half or even 1/3rd the price of the MLM products. If you’re in a juice company, start thinking about a backup plan or go international where Costco doesn’t exsist.

    This type of MLM pay plan has an aspect of it that warrants serious consideration before delving in too deeply with a company that uses this unilevel type of plan. And what is that serious consideration? It’s about the actual percentage of compensation that one gets with this MLM pay plan. You see, in order for a pay plan like this to give a good payout, it usually has to spread the pay out over many of these levels. Essentially, the payout goes deep, which is ok if you’re a major recruiter, but no one else.

    When it goes deep though, it becomes that much harder for the little guy / gal to make serious money. And remember, the little guy / gal happen to represent 95% of the distributor base within all MLM’s.

    A Pay Plan SHOULD be Fair to Most of It’s Participants. And Unilevel MLM Pay Plans Make this Fairness a Tough Thing to Achieve FOR THE MASSES.

    If you happen to still prefer the Unilevel pay plan structure, our teams’ choices based purely on product would be Send Out Cards, or Light Year Wireless, here’s why:

    Unique product that most people need

    Low startup cost (less than $400.00), combined with a low monthly overhead

    Product is attractive to “Non-MLM” consumer base

    Zero competition within the MLM industry.

    While travel is by far our # 1 pick, we recognize that some people may not be interested in it. If you’ve decided travel isn’t for you, Light Year Wireless or Send Out Cards would be a great choice.

    So What Does This All Mean in the Real World?

    Basically, a Unilevel pay plan is forced to pay out a moderate amount or percentage of the total percentage over the first several levels in a person’s organization. So what ends up happening is a person finds the first one or couple layers of the plan paying anywhere from one to say, ten percent on each level. The rest of the remaining percentage (out of 100 percent) is spread out in any number of ways throughout any number of levels. Usually seven to nine levels though.

    It means a person requires an absolute ton of people in order to make serious money. Or even to make back and break even on their money spent on monthly product purchases…… Not a good situation to be in for long-term retention of reps!

    You see, if a person crunches the numbers within a unilevel MLM pay plan to figure out just exactly how many people are required to make the commissions add up to 100 percent, then that person will know how many other people she’ll need to get to break even on money spent on product (assuming all who join order required volume of monthly product).

    So, if after crunching the numbers a person finds out that they need to have 25 people in their organization to make a total of 100 percent commission (which should equal their money qualifying product costs) then that is the magic number for break even status.

    Now, What Does This Tell Us?

    It tells us that in this particular instance a person will have an organization where over 95 percent of the people in that organization are NOT making any money. And again… that’s not a good situation to be in.

    Go Ahead, Figure it Out for Yourself Hypothetically…

    “Hmmmm…. I have 26 people in my organization including me and I’m the only one breaking even. 25 people beneath me aren’t breaking even. Or even coming close because they don’t yet have their 25 people beneath them.”

    You See…

    Always Do the Math. It’ll Reveal the REAL Situation Occurring with Payout on ANY of the MLM Pay Plans One Encounters.

    But unfortunately this type of information is only come by the hard way for most who do find it out.

    They join…..They find it out….. They quit! Which Equals Massive Attrition!

      الوقت/التاريخ الآن هو الجمعة ديسمبر 09, 2016 12:45 am