Commission Plans – Challenge and/or Trap in Network Marketing

You are right – a commission plan is a normal feature in MLM.

Unfortunately too many people don’t ever take the time to investigate the commission plan in detail nor in fact their policies and procedures. Both of these items are equally critical when it comes to securing success – none can be given priority – it’s kind of a question “who comes first the egg or the hen”. therefore let’s simply  discuss commission plans today.

  • The very first question for you to ask is:  “What do I have to do to earn my first money”. If the answer to this question is jumping through hoops and finding a number of people – RUN
  • Next: “Which qualification do I have to meet to stay qualified for commissions”. So if you have to do more than just a certain personal sales, like having to sponsor one two or more, or even if the required personal sales is too high – RUN
  • Another critical point is that in some plans personal requirements increase with increasing income – that is where I ask you – how will you ever be able to retire on such a plan? Some people tell me they simply throw away the products they need to buy – this seems an awful waste if you ask me. But often you also need to sponsor people in the process. Say you have built a fair income and now you want to go on a 3 months’ cruise with your family – how will you do this if you have to sponsor, e.g., a couple of people per month to be eligible for commission. Might be an idea to RUN before you get into this tight spot!
  • How about this one: You need to prove that you are an active coaching and training partner for your team on an ongoing basis…

An these are just a few examples of what you may encounter when you study your commission plan.

A good question to ask yourself or rather whoever wants to sponsor you into a business is: “How many people do I need for a 10K residual income” – and watch out – this doesn’t comprises bonuses which as a rule are one time payments!

I hope this gets you thinking about the topic! If you need help to analyze the commission plan you are in, simply be in touch – we gladly will help you for free.

To Your Success

Frieke Karlovits

Your Mentor With A Servant’s Heart

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