Before choosing a network marketing business you will want to know the compensation plans. You want the right plan, one that will generate a good income in reasonable time and one that will allow you to build your network marketing organization as wide and deep as you want it to go. A good plan must be simple enough to explain to a new recruit. It must be replicable making it easy for the recruit to duplicate what you have done, thus setting up a great downline that will bring in reoccurring income not only for you, but also for them. Below we discuss different types of compensation plans.

Stairstep. This one is the oldest and is very simple. Each promotion you meet will advance you within a set structure made up of levels. Usually, the distributor works on volume, and the sponsor will receive a percentage of that volume.

Breakaway. If you dont mind building a team or company again and again with little money made, this plan could be a challenge. If you have a great distributor reaching whatever monetary limit on a certain level which can be the breakaway point, it drives the sponsor into discouraging any downline person from getting too close to the break away.

Unilevel. This plan can go very wide on your first level. It is an easy plan to explain to your distributor, however promotions are almost nil. Sometimes this plan can limit your depth of levels and the payout. It can discourage a deep sales organization.

Binary. Binary plans are limited on your first level. Everyone else goes below in depth. The drawback with this plan is that you may get a recruit who works hard. You see his potential. He will make a great team member, but because you have your first level filled, you have to place the hard-working advancing recruit at a level that will give you little benefit.

Matrix. This plan is sometimes called the Game plan. It is the most unsuccessful of all the plans because you are placed wherever the sponsor or company wants you. The only way this plan works well is when the that the products are used mainly by the distributors rather then by the customers. Otherwise, there is virtually no productivity.

Austratlian Two-up. One of the newest plans in marketing is the Australian Two-up. This plan is structured so that the first two people you recruit are given to your sponsor, and everyone else is your recruit. Some have been known to keep the strong prospects for themselves giving the weaker recruits to the sponsor. Thus some companies have come up with something called an override, or offering a bonus for the people you give up. Good luck if you can keep up with this one.

DO YOUR HOMEWORK

There are some great network marketing companies with beneficial compensation plans. These companies know that their distributors are their biggest asset, so they give them every advantage possible. They have small joining fees, have a lead product, and pay out on volume as well as on levels of BGP. So, before you sign on the dotted line, make sure what you are getting into. Do your homework first. Join a network marketing company that will keep you in mind at all times and give you a compensation plan that will let you climb to the top and succeed in your organization.

Deana would like to help you make your network marketing journey a big success.