Analyzing your compensation plan
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Transcript of Analyzing your compensation plan
Analyzing Your Compensation Plan
Have You Been Paid Yet?
Presented by: Frank AndresFounder of StopStrugglingToday.Com
In Networking Marking there are many different types of
compensation plans
Some are very straight forward while others
(most) are clear as mud
Since your “Comp plan” is the major factor in
determining your profit potential, it is VITAL
to make sure it’s in your FAVOR!!!
There are 4 key questions to ask when analyzing any MLM
compensation plan
Each question brings you closer to understanding the
profit potential plus what you have to do to make money using that
compensation plan
Question #1
How many people do I need in my organization to make
10K per month?
The reason this question is VITAL.It answers the question of how
“hard”you will have to work in order to
reach your financial goals
Employers that pay the most moneyare the most sought after!
Shouldn’t it be the same with MLM Companies ?
It makes sense that you would want the comp plan that pays
the most moneyfor the least amount of work
When put to the test MLM comp plans vary drastically!
To achieve a monthly income of 10Kthe industry average is about 2,800
I have found plans that range from
(high) 28,000to
(low) 100
The Best Comp Plan Is:
The one that produces the highestincome with the least amount of
people
Don’t be fooled into believing differently!!!
Question #2
What will I get paid if I bring $500 in revenue
into my business each month?
In a traditional sales jobcommissions
for revenues generated earn20 percent to 50 percent
In some network marketing comp plans
you can go into the negative
For example, I have friends that were with Excel Communications, it cost them $100 dollars per month to
produce $500 in revenues
I only mention this because some companies still use that
business model
In most MLM comp plans, $500 in revenue will result in ZERO
commissions!!!
In a few, you might earn 4 - 8 percent commission
How much did you earn last month?
In companies that are more streamlined and modern, it is
possible to $50 to $250
Aren’t these the companies we should be looking at when
considering an MLM?
How Much Are You Really Earning?
How long do you think a new distributor will stick with you, if
they’re losing money?
If people are not paid, then they won’t stay!
They can’t AFFORD to!!!
Question # 3
To have my products paid for, how many customers will I need?
It all comes down to retention.
If your new recruit can’t break even quickly
then they won’t be around very long
Most people enter this industry “with the urgent need”
to earn additional income.
If your companiescomp plan doesn’t provide
a “quick break even possibility” then they will simply quite because
they can’t afford it.
A Total Fail would be any company that requires 20 customers
A company with below average scores will require ten
A good Company should only require a maximum
of 4 Customers to pay for monthly auto ship
I calculated the numbers from a handful of the Top Network
Marketing Opportunities and what I found shocked me!
These Top MLM companies took between 8 to 12 persons
to break even
WOW… how much of your business volume is going to just paying for
your products?
Question # 4
Are there loops, hoops and other traps are built into the
Comp Plan?
So your plan passes the first 3 criteria! Yeah, show me the money!
Not so fast, make sure to read everything you can about your
chosen company
Read the fine print as well as the charts and graphs
The fine print will reveal what you have to do to earn anything
Look out for Hoops and Trapsdesigned into many comp plans
Ask questions of your sponsor and keep asking until you have answers
that are understandable to you
This is, after all, your future.
StopStugglingToday.Com