5 Pillar Company in Network Marketing Today – Part IV

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Where is the Money?

Pillar 4

Does the  compensation plan pay part-timers?

Seeing that network marketing by now is 60+ years old some general statistics are available of course. Therefore I can safely say, that 95% of all networkers are pert-time people.

With this in mind it is obvious that a compensation plan needs to provide an income for these people or attrition will be booming.

The money for the paid out commissions of course has to come from turning products, which regulates the possible payout. When a company is advertising big how many millionaires they have created – have a close look if this was not done on the back of the part-time people.

The people at the bottom should never be the donkey on which the big ones ride to their success!

When you investigate a compensation plan, ask yourself the question: how many people do I need to consistently make $ 500 a month. The span you find out there is between 500 and only 20. Some well established companies will have compensation plans where you need between 150 to 350 people – and yet they manage to attract new people – they must be “in love” with the product!  They are still able attract new distributors – Amazing!  They must be sold on the product!

Ask your upline how many people you will need in your company – they don’t know? Well that might be an incentive to RUN!

When the commission you are making on the product is something like 5 – 8%, then you are really underpaid!

The bigger part of your commissions need to come from products being sold to end consumers. You don’t want to be in a scam – correct?

Also here there are more points that are worth while being discussed. Just ask!

Make sure you investigate what you are doing, after all you want to have success in network marketing today, you want to build a long-term business which will not only pay you but also your children and grand children. And a point that is important now and long-term:

You want to maintain your credibility!

To Your Long-term Success

Frieke Karlovits

A Mentor With A Servant’s Heart

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2 Comments

  1. Reply

    I find it amazing how many people settle for such little commission percentages. I have seen some compensation plans that under paying their reps but so much. Being paid only 2% and would never make more than 10% commissions even at the top of the pay plan.

    Apparently they must not know that there are companies who are willing to pay much more. 10% to start and when at the top of the pay plan no less than 53%.

    But I guess those who settle for only 2% or 5% commissions are “in love” with the product they are selling and not looking to create financial freedom with their online business.

    Thanks for a really great post Frieke. Keep them coming, I enjoy reading them very much.

    ~Darlene

    • Reply

      I guess these compan ies simply get along with what they are offering due to the lack consciousness of so many of the people involved :)

      ‘Thanks for being in touch!
      Frieke Karlovits

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