Ideally, the multi-level marketing industry has been experiencing massive growth nowadays. That’s why every person is curious about starting a business and earn a significant income from the comfort of your home. In order to know what MLM business is the best fit for you, you may need to have a better understanding of how compensation works in the networking industry.
If you consider joining a networking company, here are the best MLM networking compensation plan opportunities that you should be familiar with.
1. Unilevel Plan
This is known for being the most straightforward plan to understand. Under the unilevel network marketing compensation plan, every person you’re going to sponsor will be on your frontline. It means sponsoring into one level and gaining commissions on every person your downline members fund to reach the first level. The good thing about this is that it’s the simplest and easiest plan to explain to recruits. However, the downside of a unilevel plan is that you may get a little support from an upline and no rank advancements.
To know whether joining an MLM company with the best comp plans is the best way to earn more money, read some resources online to help you make a sound decision easier.
2. Binary Plan
Under the binary compensation plan, you’ll be given two legs, the right and the left side for your two frontline associates. When the sales of both legs match at a particular amount, you’ll be paid with commissions. If there’s an additional volume in a leg, it’ll be carried over to the next commission payout period. An advantage of having this kind of compensation plan is that you’ll more likely be paid weekly. Plus, the program itself can be an excellent way to encourage group participation.
On the other hand, the not-so-good thing about a binary plan is that it may cause some legal concerns when people push for recruitment over the selling of products. Plus, there’s also a tendency that with many people who start and grow their business with the same MLM setup, they fail to support the downline members.
3. Stairstep Breakaway Plan
It’s the oldest network marketing compensation plan operating these days. It’s actually called a unilevel plan, but it differs in one thing. When you’re able to achieve a certain level, you’ll break away from the upline and begin a new line. From there, you’ll get royalties from the sales volume obtained by that line.
If you’re good at recruiting a high volume of people and don’t need network marketing training, this breakaway plan can be the right fit for you. A rewarded performance, easy modification, and the acceptance by regulatory distributors and agencies are some of the advantages you can get if you have this kind of compensation plan. However, it’s also the most challenging plan to understand and explain to new recruits, and it may result in inventory loading just to achieve the volume requirements.
4. Matrix Plan
It’s also known as the forced matrix plan. This compensation plan works by limiting the width of each level. As a distributor, you’ll likely add more people and their downline members fall under your line. For instance, if you have a 5 x 7 matrix, there’ll be three distributors at each level going down to seven levels. When you’re done filling up the top line of the matrix, it’s time to put the people you support under the others for them to fill up the matrix.
The positive side of the matrix network marketing compensation plan is your ability to create a strong downline for you to generate more profits. Unfortunately, only a few MLM companies are using it because it has been criticized as a pyramid scheme.
Top MLM Companies With The Best Compensation Opportunities
Again, there are plenty of MLM companies to choose from, and one way to find the best is through the compensation plans they offer to their customers. Below are some of the multi-level marketing companies that use the best compensation plan opportunities:
When it comes to aging, LifeVantage is there to improve your health through researching, testing, and making products that deal with the biochemical effects of aging. If you want to join in this MLM company, you can do so by becoming a customer and purchase products at a wholesale price or by being a distributor where you can gain commissions from your sales and downline. Some of the company’s compensation plans include royalty commissions, bonuses, rank achievements, and so on.
2. Total Life Changes
It’s an MLM company that offers lifestyle products such as essential oils, skin care, and many more. To be part of this networking business, you have to join as a representative and begin earning from the products you sell. Retail commissions, binary pay, matching bonus, and lifestyle bonuses are some ways to gain profit with Total Life Changes.
It’s a global company that provides lifestyle brands such as Nucerity, Puritii, and Nutrifii. What’s good about this MLM business is that they’re the first to offer a multiline compensation plan, called Activ8. It’s a comp plan opportunity that gives 50% payout, which is considered as the highest commission structure. Also, it uses a cost-of-living increase accommodation that will support you while you grow over time. If your compensation plan is a little out-of-date, you can consider this as an alternative option.
It’s another MLM company with the best MLM compensation plan in the market. Focused on lifestyle products intended for weight loss, Thrive can allow you to earn 20% from your customers’ orders as a brand promoter and another 8% in every level of your downline. Whether you’re a beginner or an experienced professional, this company offers excellent compensation plan opportunities for all its members. Cash bonuses, luxury vehicles, and even Lifestyle getaway trips are some of the best parts of Thrive.
Typically, there’s no right or perfect plan for everyone. When you do your research about some
of the notable MLM companies in the industry, be sure to consider the best network marketing compensation plan opportunities they offer. Make an effort to understand the rules of each plan and see if it’ll work for your financial needs in the long run. Doing so will help you find the right network company that meets your needs.