This message is being delivered by more and more direct sales companies when speaking about their own compensation plans.
It's usually the companies with bad compensation plans that teach this.
What is the truth?
The Best Compensation Plan is the One That Works For You!
You have a choice.
There are dozens, even hundreds of MLM companies with similar products. It is wise to be selective concerning how much you are being paid.
Before joining a company go to a search engine and type in the company name followed by the word reviews.
First a warning: many people are writing reviews with the main intent of trying to get you to join their opportunity. IGNORE THESE. Their motivation isn't helping you make a good choice.
You will find that some reviews do a really good job at explaining the compensation plan. Take a step back and objectively evaluate what is being communicated in the review.
Take notice of the following:
Is the compensation plan a uni-level, binary, matrix, or one up?
If the company uses a binary be fully aware of what this means.
The company may not use the word binary, they may speak of it as you having two "legs" of compensation.
The network marketing company usually pays on the "weak leg".
So, if you have sponsored ten people and you put 6 in one leg and 4 in the other...
you are only being paid on 40% of your work!
How nice for the company. They get you to work for free on 60% of the sales.
How much, when you join, will you make on the first sale?
Figure out the total percentage.
Take the amount you will be paid and divide it by the total price your new customer will pay. Use the calculator on your phone or computer to figure this out.
If you'll make $7.00 and the total purchase price paid by your new sponsor is $97.00
$7.00 / $97.00 = .07216
The commission you earn is basically 7%
Ask yourself if you are okay working for that percentage.
You may answer...
"Well they do give bonuses, and matching commissions, and the amount goes up as I sponsor more, etc."
Ask yourself this...
Why doesn't the company realize the value of making sure they pay new customers generously so they will stick around?
Do they really want to help you as their marketing says they want to?
Unfortunately, most MLM companies reserve the compensation dollars for the small number of people that sponsor a lot of people.
Who is your upline really wanting to help? Who is the company really wanting to help?
Too often the reality is, they are just really out for themselves.
Does this company offer life-long potential?
If the product is great, those that are newly sponsored will make a fair commission, the communication between company and yourself is clear, and there is increasing excitement you may have found a company that you can build a business with.