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Researching the Most Profitable Compensation Plan

By: Stephanie Casanova

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Compensation plans within the network marketing industry can be difficult to understand and even harder to implement. When presented with a compensation plan, it is important to have the knowledge to discern a good compensation plan from one that will not easily make money. It is easy to become confused when researching network marketing compensation plans as most seem to be written for experienced MLM marketers and use words like binary,uni-level, stairstep breakaway, and forced matrix.

The main goal of evaluating a compensation plan is to determine how much money can be made realistically. Many plans have a complex matrix with hundreds of rules and stipulations in order to qualify for benefits and monetary incentives. It is important to decide what will have to be done in order to make X amount of money and determine if the compensation is fair for the amount of work needed.
Here are three factors to consider when evaluating an MLM compensation plan.

1. Does the compensation plan pay distributors fairly?
Determine what percentage is earned per sale, by asking the company directly or by comparing the wholesale cost and the retail cost of a product. If the percentage is too small, distributors will walk away discouraged, however if the company pays too much, they may be setting themselves up for financial distress.

2. What are the product volume requirements?
Network marketing companies require that distributors maintain a certain level of monthly product volume to be considered active in an organization. Many MLM companies offer an auto-ship program which allows customers or distributors to receive a shipment of product automatically on regular intervals. Before choosing a network marketing company, learn what the monthly requirements are and decide if it is reasonable and achievable. A smart move is to select a MLM company which markets a product needed in everyday life.

3. Is the Compensation Plan Understandable?
Although it may not be necessary to completely grasp a network marketing compensation plan at first, you should be able to fully understand it sooner rather than later. Some compensation plans change too often or are too complex to explain or understand. Most MLM companies with complicated or evolving compensation plans are setting their distributors up for failure. It is important that the plan is understandable. Ask other distributors to explain it.

Trivani International® is a good example of an MLM company with a compensation plan that works for the distributor. Trivani's revolutionary Life-Line Compensation Plan is one of the most generous in the industry; it has three separate and easy-to-understand aspects.

First, the Trivani's Life- Line allows distributors to earn percentages from the ever-increasing global growth.

Second, the Power All portion of Trivani's compensation plan takes 24% of the global volume within the company and distributes it between 15 different Life-Line pools. Distributors can access up to seven pools at once!

Third, the Power Deep aspect of the plan allocates 45% over 12 levels. Their unique infinite compression system allows distributors to maximize every payment level and potentially earn commissions from far more than 12 levels.

Finally, Trivani's compensation plan has the easiest rank advancement system in the industry.

A successful MLM compensation plan will provide multiple ways for distributors to earn a healthy income, sell a necessary product, have reasonable purchase requirements, and be easy to understand. Apply these standards as you consider possible MLM options for yourself.

Article Source: http://depositarticles.com/

Shannon Cassidy is an online journalist and professional writer. For more information on network marketing compensation plans visit www.trivani.com

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