2 Kinds Of Multi-Level Marketing Payment Structures

Starting a business is a great way to transform your lifestyle. When you make the decision to become your own boss, you put yourself in position to become a real provider. However, most people fail in the multi-level marketing industry because they are poorly educated. In my opinion, more people will succeed if they educate themselves on how they will get paid.

Today I will share with you two different types of multi-level marketing structures.

#1 Uni-level

In my opinion, this type of payment structure is the simplest. Unlike most payment structures, this plan is only one level deep. All of your recruits will be on your front line. Every person you introduce to the opportunity you are affiliated with will fall right under you. Typically, this plan can go as deep as five to eight levels.

In my opinion, this type of plan is designed for people with part-time jobs or people who are interested in making some quick money over a short term. Start-up companies use this option to attract new members.

However, with one vertical level available, the income potential is limited. The limits on the income potential on this plan is enough to deter a lot of members who are looking for a full-time career. Some MLM companies like to offer bonus programs in order to compensate for the limited income potential.

Instead of mailing out a multitude of mini bonus checks, MLM companies offer prepaid cards to members to make the process of transferring funds faster.

#2 Binary

In a binary payment plan, you are responsible for enrolling two people. Each person you enroll in your company is responsible for enrolling two more people. The reason for this is to encourage the recruiter to train and motivate every single person he or she enrolls to the highest level of that particular opportunity. This plan is new compared to the other plans. It started to gain some popularity in 1988.

One of the advantages of this payment plan structure is that it pays based off of volume. The more orders you bring in, the more your income will grow. In addition, everyone just needs to sponsor two recruiters.

Although the binary plan can have a huge amount of depth, the depth can cause a problem. More depth means more payments have to be made. With more reps claiming commission on an order, the commission rate can drop causing people to receive a series of small checks.

Which is the best MLM payment plan structure?

I can recommend that you do more research on more methods of getting paid. Fortunately for you, there are organizations of experts who offer information in the form of free reports in concern to payment plan structures.

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