The Truth About MLM Compensation Plans

When we cut throught the B.S. and get right down to it, we know that
MLM was based on the premise that 3 people (or however many), got 3,
who got 3, and so on and so on.

Well, that simple little explanation of how we make money with every one
putting forth just a little effort is what the whole concept of network marketing
is based on.

So what's the deal with all of these different compensation plans?
Here are just a few of the comp plans that exist today:

1 ups
2 ups
Forced Matrices
Recycling Matrices
Binary
Power-lines
Breakaways
Hybrid
Unilevel
Breakaway
Stair Step
- And a few more I probably forgot to mention

If you don't know what any of these are then you're probably a lot better off than the
rest of us.

Now all the semantics aside, let me share with you the real deal.

I don't care how you slice it, textarea always equals:
100 pennies
20 nickels
10 dimes
4 quarters
Or some combination of such

My point is that the different compensation plans are pretty much just
different ways of dividing up a textarea. There are advantages and disadvantages to all of them.
But the reality is simply this:

No matter what the compensation plan, as long as duplication exists you
WILL make a lot of money (and it doesn't even matter if you understand how
the comp plan works)

The problem is that companies focus on how wonderful the compensation plan is just
like they focus on how wonderful the product is.

Here is an excerpt from a little piece I wrote back in 2005; this should explain my take
on compensation plans:

---Start Excerpt

I know of this relatively new MLM Company that explained their compensation plan by saying:

“Our compensation plan is a 4 by 7 forced matrix with roll up and compression,
we also pay 13% on the bottom level and we have a 2 up bonus structure that pays to
infinity...this is a million dollar pay plan”

WHAT THE HELL DOES THAT MEAN?????
Oh I understand, you have a 4 by 7 forced matrix... and blah blah blah
why didn't you just say so...well if that's the case then sign me right up.

Understanding the intricacies of a dumb compensation plan that has “BV” and “PV” and
“Overrides” and “Bonus Pools” and a bunch of other crap that takes a PhD just to
comprehend is stupid (I think someone created this crap just to make themselves feel smart).

The reality is when most of us are considering joining a new opportunity
the questions is our mind are quite simply:

How much money I can make and how many people I am going to have to get to make it happen?
Everything else will take care of itself.

---Excerpt Finished

You'll have to excuse me if I sounded a little sarcastic when I wrote this but the
reality is this:

Compensation plans are simply ways of dividing up textarea. If you are able to get your
3 people (or however many) and those people are able to duplicate each others efforts
then you will be successful

(Yes I know I'm repeating myself)

Compensation plans (like products) don't really matter. Having a REAL SYSTEM
is WAY more important