Understand your compensation plan!
Understand how much you are getting paid. Not all compensation plans are created equal.
When we look for a job, one of the most important questions we ask is ''How much am I going to get paid''

It's amazing to me that when we join a Network Marketing company we throw all that common sense out the window.
I've done it, people I know have done it, and there is a good chance that you've done it too.

Here is a example for you.
You are standing in front of two stair cases. One staircase has 2000 steps and the other has 400.
On top of each staircase is an envelope with $10.000 in it.

Question:
Which stair case are you going to start climbing to get the money?

If you are building a business and the company is paying you next to nothing, then who's fault is it?
Your fault? Or...maybe is the pay plan? Hmmmm...

What's your monthly financial goal? Is it $5000 per month? $500? $10,000?
Here is how you can figure out if you get paid fairly or not. How many people ordering your products or services regularly do you need in your downline to reach that goal?

Remember : We are talking about $10,000 in residual income not bonuses.
Bonuses involve recruiting and are one time payments.

Let?s say your monthly goal is $10,000 and in your company the monthly product purchase for distributors is $100.
The next thing to consider is the average percentage the company pays you on levels.
Let's say you have 7 levels in your comp plan and you get paid anywhere from 3% on level one to 7% on level 7.
Now you take the average between 3% and 7% and that's about 5%.
So on average, every $100 you bring to the company the company pays you $5.

Now if you take $10,000 and divide it by 5% that will tell you how many distributors/customers you need to make that amount month after month. The answer is you need 2000 distributors/customers that order monthly to reach your financial goal.

Of course if you get 5% you are extremely underpaid. And even if the company pays you 30% on level 7 it does not matter because the fact is that most people in this industry are part timers that never get beyond 2nd level.
If the part timer in your company is not getting paid you cannot sustain a  long term downline.
It's not only that YOU don't get paid fairly, you also invite people into a pay plan that does not pay.

If people don't get paid fairly, early and often they get discouraged and quit.
''NO PAY! NO STAY!''

The $10,000 question can range anywhere from 400 people needed all the way to 10,000 people or more.
Why would you have to work harder than you have to?
And why would your team stay if your competitor pays them a lot more for a lot less work?

When you are looking at any home based business, you should analyze your pay plan first before falling in love with the product. After all, it's the paycheck you receive, not the product, that will pay your bills and make your purchases. If you're not making an income you won't be able to buy your product.

In order for MLM companies to stay in business, they have to offer a good product. But  they don't all have a pay plan as good as the product!

And make sure you don't have to jump thru a lot of hoops to get a check.

Ask yourself this:
If my team and I bring my company $500 in revenue, what does the company pay me?
You'll be surprised to find out that there are companies out there where you are actually up to $100 in minus while they make $500 from your efforts.
The negative answers are from companies with low commissions, high startup fees, monthly website fees, renewal fees, etc. All money that comes out of your pocket, not from product sales.

If you choose NOT to be a critical thinker, then all the cards are stacked against you from the beginning.

If you need help analyzing your comp plan call or email me anytime.

Daniela Riess
702 686 1433
dm.riess@gmail.com
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