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7 Different MLM Compensation Types Explained

As the Number of Network Marketing Programs proliferate the Number of Network Marketing Payment Types increase as well. This Article will explore 7 types of Payments that a Network Marketer can receive. Many Plans Employ Hybrids where they combine 2 or more of these Payment types into their Pay Plans.

1 - Uni-Level MATRIX PLANS

This is often referred to by the un-informed as the Dreaded "Pyramid". A Unilevel Matrix allows you to have Unlimited Width and Limited Depth. Simply Point let's say that you are personally responsible for signing up 10 team members. You will earn a commission on all sales generated by your 10 Team Members. (You could in fact sign up 100 or 1,000 or even 1,000,000 or more people on your first level). Now lets Say each of your 10 Team members Sign up 10. Since 10x10 is 100 You will now have 100 People on your 2nd Level. You would also earn commissions on all Sales Generated by your 2nd level. A Typical Uni-Level will pay down 5 or More Levels. If each person were to continue to get 10 this would leave 1,000 people on your 3rd Level, 10,000 People on level 4 and 100,000 People on level 5. A very promising but highly unlikely scenario.

2 - FORCED MATRIX Pay Plans

A Forced Matrix is Similar to a Unilevel Matrix but it limits the amount of people each person can have in their first Level. A Very Popular Kind of forced Matrix is a 3x9 Forced Matrix.

With a 3x9 Forced Matrix The Most People you can have on Level 1 is 3. Now the most people each of those 3 can have on there level 1 is 3 which leaves you 9 people on your 2nd Level, A 3x9 Matrix By the Levels

  • 3
  • 9
  • 27
  • 81
  • 243
  • 729
  • 2.187
  • 6,561
  • 19,683
    • Total - 29,523

    One Advantage of a Forced Matrix is Spillover. Spillover occurs when you sponsor more people then can fit on your first level. So if we use the Unilevel Example above and Assume Everyone Sponsors 10 You Would not only completely fill your 3x9 Matrix but you would actually have enough people left over to fill a 10th level of 59,049 and partially fill an 11th level of over 170,000.

    3 - Fast Start Bonus

    A Fast Start Bonus is Seldom the only part of the compensation plan. More often then not it is used as an extra incentive to sponsor more people. The Fast Start Bonus is Typically a Lump sum payment of up to 100% of the First Months Membership for anyone you sponsor

    4 - Sponsor Bonus

    A Sponsor Bonus is often used with a Forced Matrix. It is usually a Monthly Recurring Bonus and is paid each month on everyone you personally Sponsor.

    5 - BREAKAWAYS

    Breakaways are used with Matrix Pay Plans. When a Team member reaches certain qualification they break away from your team and you no longer receive the Matrix Pay out on that team member or anyone in that part of the Matrix (the Break Away). You do however receive a Lump Sum Monthly Commission of the entire Volume of the Break Away Unit.

    6 - INFINITY BONUSES

    Are often Used with matrix Pay plans. They allow you to earn down an Infinite number of Levels if you meet the Qualification. You could be blocked by someone on a lower level who also qualifies.

    7 - BINARY PLANS

    A Binary Plan is like a 2xInfinity Forced Matrix with a Twist. In a Binary you would have 2 Legs. You would typically earn a commission on the Entire Volume of your weakest Leg. Many binary's have systems in place that may allow you to earn Commissions at a later (via a Carryover) on your Strongest leg.

    While the pay plan is important. It clearly is only one small part of the MLM you choose to join. You should look at the whole package, Pay Plan, Product, Automated Tools. Market Size, Start-Up Costs etc.

    About The Author:
    Mike Makler has been Marketing Online Since 2001 When he Built an Organization of over 100,000 Members

    How to find the Best Home Based Business
    http://ewguru.com/comp20


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    Copyright ? 2005-2006 Mike Makler the Coolest Guy in the Universe

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    In The News:

    Tracking the progress of the third party testing we at PES are coordinating along with U-Plug Products LLC, of their 2 kW U-Plug magnet motor that is a 24"x6" portable cylinder weighing 20 pounds, expected to cost 2,000 USD. We want to run it three times longer (21 hours) than what the best batteries available could provide. (PESWiki; February-April 2016)
    Pre-launch video announces a new LENR website coming March 1, 2016 at http://LookingForHeat.com The video is very well done as an entertaining piece that hopefully will go viral. (Free Energy Blog; February 21, 2016)
    It's not easy to find a qualified testing agency that is also willing to sign off on something that appears to defy our existing understanding of the laws of physics. U-Plug has agreed to allow for a group of us scientists, including at least 3 PhDs to go test their unit and publish our report. (PESN; February 20, 2016)
    So that this is quite clear, this is a test on a Regular Torch. NOT the ELFE flashlight. This is to compare them. 2 x NiMH AA 1.2v Battery's in a Regular Torch with a Halogen Bulb. Load is 2.8v and 0.85amps. (PESN; February 17, 2016)
    Video explains the scientific principles behind how the ELFE flashlight harnesses endless free energy from the environment (Earth's magnetic field), which works better in some regions than others. It also shows the insides the torch. Uses the word "antennae," as one of the components. (PESN; February 14, 2016)
    "The OPhone contains a capacitor that directly powers our phone. During extensive use this capacitor may become discharged, however this capacitor is being constantly trickle charged by Orbo. So after a period of time the capacitor will be recharged and the phone will be functional again. In essence the phone is charging itself." (Free Energy Blog; February 13, 2016)
    The company that has figured out how to harness the earth's magnetic field to produce usable power and has been selling the ELFE flashlight (two more customer reports), is now developing a 3 kW generator. In two weeks, they are holding a business meeting for international distributors. (PESN; February 12, 2016)
    Illinois company is gearing up to manufacture a 2 kW (115 volts, 17.3 amps) magnet motor that is load-following, portable, 24"x6" tube, weighing 20 pounds, very quiet, with 3-year warranty but expected to last at least 20 years with zero maintenance. Third-party tested. MSRP 2000 USD, beginning March, 2016, through distributors. (PESWiki; February 11, 2016)
    The government agent who worked on this technology five decades ago, that is similar to Professor Steven E. Jones' Joule Ringer, thinks it is conceivable that we could eventually scale this solid state technology up to have a device the size and price of an air conditioner providing 20 kw. (PESWiki; February 9, 2016)
    Nagendra Singh in Mumbai, India, informs us that they have built five of these and have two running for customers presently, in the 40 kVA range. "Presently it is too [expensive], costing 3200 USD per kva below 30 kva." (PESWiki; February 8, 2016)
    The SunCell is described as a solid state "Sun in a Box." A 200 kW module would weigh around 250 pounds, with energy production cost being around 1 cent/kwh, so return on investment could be ten days. They are expected to be available commercially by Q1, 2017. (PESN; January 6, 2015)
    "Today I received my Elfe Flashlight and it works. Time will tell if it meets the claims of automatically recharging, when depleted. If it holds, the claims a real breakthrough in FE technologie would have been accomplished." -- German customer (PESWiki; February 6, 2016)
    The phone battery indicator stays near full even with heavy usage throughout the day. (The battery is charged by the internal OCube that pulls energy from the wheelwork of nature, solid state). (PESWiki; February 5, 2016)
    The capacity of the Proton-3ND (Proton -3 Nano Diffusion) battery is projected to be 44 times the capacity of lithium batteries. Electric vehicles with these batteries would have more power and much more mileage at no extra charge. (PESN; January 4, 2016)
    HH2 water fuel cell creates pure hydrogen off a 9-volt battery. This was a big diesel HH2 cell that was tested on a 16-liter Cat engine for CARB testing; yet it ran on very low amps and a low 9 volts. (PESWiki; February 3, 2016)
    A former U.S. Government worker describes his effort to bring to public awareness (by highlighting things presently in the public domain) energy and anti-gravity technologies that the government had operational 50 years ago but has kept from the public. (PESN; February 2, 2016)
    Imagine an incandescent bulb that is actually more efficient than LEDs! Well, it actually exists (MIT) and it does so by recycling light. (Free Energy Blog; February 2, 2016)
    SMBC-Comics.com has posted a fun spoof on our skeptics. (Free Energy Blog; February 1, 2016)
    "OK, so a lot of people are asking what's the difference between an Orbo power cell and traditional batteries." Batteries store energy, Orbo generates energy, then trickle charges a lithium ion battery.] (Free Energy Blog; February 1, 2016)
    Mr. Keshe is as misleading in the field of free energy as he is regarding me. That has been my experience the years I've been exposedto his work. He takes something and blows it so far out of proportion that it barely resembles the fact from which it was extrapolated into infinity. He demands: "Close PESWiki now." (PESWiki; January 31, 2016)
    They have achieved solid state operation using an electromagnetic pump to spray the molten silver between the electrodes for the 1000/second continuous pulsing for continuous power production. (Free Energy Blog; January 29, 2016)
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