Saturday, June 25, 2011
MLM Compensation Plans: Part 3 - I Saved the Best For Last!
First off I want to offer my sincerest apology for not getting this out to you as scheduled yesterday. But life happens and to make up for this happening, I will be offering you a FREE audio with an in depth training about Compensation plans. Moving right along to the business at hand.
I know you are going to love what I am about to share with you. How do I know this?
Because it's what YOU need for a successful business. What I am about to share with you will totally blow you away, that is if you are ready to accept it as truth.
I know that their are some that will not accept what they are about to get here.
But it is my hope that somewhere in their mind, they will remember this article.
If that is the case, they will remember me and they will return here.
Now before I get to the information that I have for you, If this is your first time to this blog then you should CLICK HERE and read ==> Part One and Part Two now.
What I will be talking about is The Stair Step Breakaway compensation plan.
The most important point I want to make is this, in a stair step break away you don't let your downline out build you! This is the oldest pay plan known to man, and in order for a pay plan to be legal you MUST be able to out build your sponsor. Are YOU understanding the reasoning behind this? If your company compensation plan does not allow you to be able to do this, and if a company is letting this happen then it's obvious that the company management do not understand compensation plans.
I want to illustrate how a stair step breakaway plan works.
Let's say it takes $500 to join your company, and your company pays $400 fast start money (this is what you call the front end money) it goes to the upline. Let's say that this person really gets busy and sponsors 10 people in that week. $400 times 10 equals $4,000 for the week. That's a very good pay day for the week . My question to you is, can any of those people he sponsored in do what they did? Not likely because people are not alike.
You may get a few people that sponsor 1,2, or maybe 3. Here's a fact worth noting, the average person will sponsor 2.5 people. So the odds are against them on doing what the super recruiter did. Not everybody can do it.
Understanding the Stair Step break away plan is very easy, and once you get it. You'll know why it's rarely used and only a few people will be successful with it.
Remember that $400 commission the company pays to the person at the top of the pay plan.
Let's say YOU get to:
Stair step 1 you will make $100 and your upline gets $300
Stair step 2 you will make $200 and your upline gets $200
Stair step 3 you will make $300 and your upline gets $100
Stair step 4 you will make $400 and now that you have reached your upline volume you break away from them.
You just stair step jumped over your upline.
At the beginning I stated that you don't let your downline out build you in a stair step break away because you will not get paid once they break away from YOU. Many people won't like this pay plan because you have to constantly keep sponsoring people, YOU will never be able to retire and have residual income.
Now I hope that you learned a lot from this article, and I am making available to you a FREE audio with additional information about compensation plans. I recommend that you listen to it your earliest convenience so that you will be successful in having a residual income that will pay you and your children, and their children for years to come. Build it once and build it BIG! The ONLY WAY TO DO THAT IS TO GET EDUCATED ABOUT COMPENSATION PLANS!
Download Your FREE audio training on Compensation Plans