MLM COMPENSATION 105
ROD COOK WORLD'S TOP MLM COMPENSATION EXPERT
As one of the persons considered at the top of compensation plan design heap all I can say is, every company, every product and every marketer requires different twitches and adjustments to make the MLM compensation balance out. If you haven’t read my MLM Compensation Plan book let me give you an MLM Compensation overview.
MLM COMPENSATION PAY PLANS
MLM COMPENSATION – Deals entirely with a company wants their distributors to do. What some people don’t realize that run companies is that there has to be a balance in MLM – Network Marketing compensation pay plans. There has to be a fair share for the new person starting out and a fair share of MLM compensation for the recruiter and a fair share for the top end manager. MLM Compensation is not simple. Too many companies start out by copying another company’s plan in their search for MLM Compensation. What they don’t know is the top leaders of that company have already left.... the marketing director for the company has been told to hit the road and the CEO is about to be fired. All of a sudden people look at that MLM compensation pay plan they worked so hard on and they are dead in the water.
MLM COMPENSATION CRITICS
I have heard complaint over the last few years by some MLM Compensation critics that more of the commission revenue has moved to top side for builders and managers. In some cases of MLM compensation companies do make it hard to see where MLM Compensation money is set aside for the salesperson little guy. It is easy to understand that some folks want to pitch all the company MLM compensation plan money to go to the builders... but there is a saying if the little guys don’t get MLM compensation pay... the big guys have to go away! The same builders that bugged you to stack the most money on the top of the MLM Compensation plan for them now blame you for not giving their new folks and growing leaders enough money. As they are whining do they offer to give up their money as their downline shrivels. No! They want you to magically find more money! Then they leave because all the folks they recruited left. There has to be MLM COMPENSATION BALANCE!
MLM COMPENSATION FOR THE LITTLE GUY
Some people only like to sell product and not recruit. Thank heavens I will take a million of them! But ff you are trying to recruit a person who only likes to sell product and their income is lousy... will the MLM compensation keep them. Easy answer here = NO! So if none to little of the MLM compensation is set aside for them, how many salespeople are you going to recruit? If you are paying the builder, in this MLM compensation scene the salesperson has no reason to join. So the builder you want won’t stay. So you have to stake out a territory for the little guy to get some decent money. Thousands of folks will be happy here with $250 a month or more profit.
MLM COMPENSATION FOR THE MIDDLE GAL
The purpose of any MLM compensation plan is to give the middle person a path to grow on. This person is a builder in growth and needs recognition and money as they grow their sales organization. As you look at any MLM compensation pay plan you have to see a path for the emerging builder to run on. In the previous paragraph we talked about enough money for the little gal to live on. In the growth path the middle person had better not lose any of the money they made on the little guy MLM Compensation. Our goal for this person in our MLM compensation quest is to get them to a full time income so they can spend their time building their business.
MLM COMPENSATION FOR THE BIG BUILDERS
The more you can pay the big top builders the better in any MLM compensation plan. However there have to separators moving to the very top so that only the hardest working souls will get the super incomes. In MLM compensation this turns out to be the one of the hardest areas. If for instance bonus pools are too easy to get into the company won’t have any distinctive top guns and nobody will want to join the company because top earnings are below top earner expectations. A top gun will want an MLM compensation plan to difficult. Very difficult because he or she is willing to work their buns off to get there and they don’t want to share the wealth at the top with many people.
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Rod's 80+ page book on MLM Compensation Plans
Rod Cook is one of the major researchers in MLM COMPENSATION, Network Marketing, Party Plans and the entire Direct Marketing arena. He has almost 40 years of experience in Network Marketing (MLM). He and his staff of reporters at the MLM WatchDog review and analyze almost 1000 companies a year and their MLM Compensation plans. He has done this MLM Compensation plan study for 20 years of publishing and is one of the most knowledgeable persons in the world on the subject of MLM Companies, their sales psychology and MLM Compensation pay plans. He has helped start Top Companies and consults with many others. Because of the Distributor Rights Association, he consults with many top MLM Distributors as their personal consultant in guiding them through their respective MLM Compensation pay plans.
BINARY PAY PLANS WE ARE THE BEST!
BINARY PAY CONTROL AND LEGALITY A SPECIALTY OF OURS: A common problem with MLM Compensation Binary Pay Plans is that after they mature they “creep” and end up paying out too much. This can happen anywhere from six months to two years and happens as more people join and earn money. This generates more matching pay points in the Binary “legs” (from the bottom) collecting money from the sales volume as it flows up. Numerous Binary companies have gone out of business because they did not carefully watch and control their MLM Compensation commission payouts. In fact for several years no 1/3 – 2/3 Binary companies survived. One company called me at 2 a.m. and was screaming that their Binary was paying out 133%. I said reassuringly, “not a problem we can fix it in a couple of days.” The voice on the other end broke down into a sob, “we’ve been doing it for 6 weeks!” The company’s comptroller had left. They did not have a separate escrowed MLM Compensation account for commissions. The IT guys just kept doing computer runs at 133% emptying the bank account. Those runs had driven the company flat broke ($750,000 excess paid)! If you are joining a company with a Binary Pay Plan make sure they have something like this in their comp plan language for your own protection: Call Rod if there are MLM Compensation plan problems!
KEEPING BINARY PAY PLANS (and others) ALIVE
Starting five years ago I saw the way that the FTC and State AG's were going on having customers. After studying the court casses and talking with three of top MLM Attorney's. I went to the drawing board and started designing new pay plans for the Binary and Unilevel that would make AG's and the FTC happy if they saw them. But as important was:
Prime Rule 1: Distributors had to be rewarded for getting customers so that they loved it and it was not a punishment. It took months and in some cases a year of testing to come up with good models for both the Binary and Unilevel MLM - Network Marketing pay plans. How could I do that? Hey I have been out on the street selling MLM Products and know how a distributor thinks, expecially aggresive hungry ones like me!
Prime Rule 2: Using the new internet business patent rules.... File patents on these radical money producing new MLM compensation pay plans. Why? Because the business patents did not exist when I did the first LEGAL fast start bonuses based on sales volume. The idea was stolen and is widely used today. The same goes for Gross Volume bonus pools that get results for recruiters. The same went for the Binary Plan innovation to keep the law off the Binary's back and increase sales for Distributors and also their MLM - Network Marketing company.
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