MLM Compensation Plans

Corporate and MLM Consult Scott H Leonard 1-888-221-0106

Many MLM Compensation Plans are drawn up with no experience, overpay and break down. Over or under paying can cripple a company, but the compensation plan can also set the tone of the business as Product/Service based or Recruitment based.

UniLevel Compensation Plan

Width: Unlimited
Depth: Limited
Advantages: Controlled Growth,
Easy to Understand,
Unlimited Income Potential
Disadvantages: Slow to Build Depth
Speed: Slow and Stable

Matrix Compensation Plan

Width: Limited
Depth: Limited
Advantages: Potential of Spill,
Fair to Understand,
Anticipation of Growth
Disadvantages: Creates Laziness
Speed: Average

Binary Compensation Plan

Width: Limited
Depth: Unlimited
Advantages: Potential of Spill
Disadvantages: Creates Laziness,
Difficult to Understand,
Difficult to Explain
Speed: Fast and Unstable

Below is a brief highlight of the primary 3, as well as those built upon thier foundations.

UniLevel Compensation Plan (Lines of Personal Sponsorship)

Width: Unlimited
Depth: Limited
Advantage: Unlimited Width
Disadvantage: Slow to build Depth

Matrix Compensation Plan
Width: Limited
Depth: Limited
Advantage: Potential of Spill
Disadvantage: Expectations of Spill can cause Laziness

Binary Compensation Plan
Width: Limited
Depth: Unlimited
Advantage: Unlimited Depth, Spill, Potential PowerLegs
Disadvantage: Mistakes by members who do not understand the Binary and choose to place people within internal legs, rather than sponsor into depth.

Hybrid Compensation Plan
Foundation: any combination of UniLevel, Matrix, or Binary
Advantage: Potential to earn based on advantages of more than one compensation plan structure
Disadvantage: Training and comprehension of more than one compensation plan structure. Also available commissionable funds are often split between structures, or directed toward one structure or the other.

Australian/1Up/2Up/3Up, etc.
Foundation: UniLevel
Width: Unlimited
Depth: Limited (Often 1 level only, some offer __ Levels deep)
Advantage: Potential exponential growth on frontline
Disadvantage: The mental picture of giving up the first __ people to my upline is not attractive

Stair Step Compensation Plan
Note: often combined as Stair Step Breakaway, but there is a specific difference Stair Step is not so much a Structure, but a Plan or Path of Advancement Largely, almost every compensation plan employs Stair Step without the title Stair Step is the Reaching of new Rank/Status/Income Levels based on Performance Qualifications Reach new Qualifications = Achieve a new Rank/Status/Step often with advancement in income.

Breakaway Compensation Plan
Foundation: Normally from the UniLevel, but could vary
Width: Unlimited (unless foundation of another structure)
Depth: Limited
Advantage: Extended benefits for those reaching qualifications and achieving breakaway
Disadvantage: A group in your downline which reaches qualifications and achieve breakaway are normally not included in your continued monthly residual income. If included, normally at a reduced amount.

Reverse Generational Compensation Plan
Foundation: Normally from the UniLevel, but could vary
Width: Unlimited (unless foundation of another structure)
Depth: Does not normally matter
Advantage: Recognized and accepted by companies with financial instruments
Disadvantage: Training and understanding of compensation model

Coop Compensation Plan
Foundation: Normally from the UniLevel, but could vary
Width: Unlimited (unless foundation of another structure)
Depth: Does not matter
Advantage: Portion of Company Wide Sales are placed in a Bonus Pool and Divided based on Rank, which is normally based on Sales Performance
Disadvantage: The model is A-typical and not familiar by most

Straight Line Compensation Plan
Foundation: Matrix
Width: 1
Depth: Unlimited
Advantage: Perceived spill and exponential depth growth based on timing, everyone else joins the company after me and lands under me.
Disadvantage: Expectation of Spill can cause laziness Visualization of structure and placement can lead to members treating the company as an "Endless Chain of Sponsoring", which is a "Red Flag", rather than focus on Sales Performance to End Consumers

Dominate your competition by Empowering your Sales Force with real MLM Software Solutions, DB44 by Inspetta!
Call: 1-888-221-0106

Scott H Leonard
Inspetta LLC

‚ÄčAbout Us

Business Opportunity or Scam?  Your business could be walking a fine line!  Leverage more than 20 years of Corporate and Startup Consulting experience and establish your business along the correct path.  Direct Selling, Party Plan, MLM, Network Marketing, Affiliate, MultiLevel Marketing, or Traditional business, your fundamental needs are simple... Vision, Image, Branding, Products, Print and Collateral Materials, People, Trainers, Leaders, Culture, Events, Momentum, and Capital.

So... Where do YOU Start?

You start by hiring an experienced industry consultant.  For example, the MLM Industry is packed with thousands of so-called MLM Consultants, depositing your check and vanishing.  Mostly, their claim to fame is a supposed xThousands of people in downline with a previous company.  Seriously, if the xThousands of people were real, or real buyers of product, they wouldn't be trying to pitch consulting to you.  These guys have ZERO idea of how to design a comp plan, structure a company, or guide you through the nuances of launching a REAL MLM or Direct Selling Business.

  • Before engaging an MLM Consultant, take time to meet the Consultant, in person.
  • Determine their availability on an hourly, daily, weekly and basis.
  • Offer to cover Time and Travel Expenses for the Consultant to come to YOUR Offices.  It is often cheaper for Consultant to come to you, then for you, your partners, leaders, IT person, branding guy, etc. to fly to the Consultant.  When a Consultant comes to you, it allows you to schedule and put all your key people in a room, to get direct answers and instructions, straight from the horse's mouth.  It means your entire team will be on the same page, in every area, from structure to branding, compensation plan to marketing.
  • Request the cell phone number and willingness to take after hours calls.
  • Examine their appearance and conversation... ignoring the sales fluff or smoke and mirrors.
  • Get to the heart of your needs, allowing the Consultant to offer indicates of their knowledge, talent and experience.
  • Sign an NDA, as provided by the Consultant.  It is generally a 2-way NDA and has been reviewed many times.  No need to try and pen your own, only to show your lack of experience.  Furthermore, his NDA is specific to the industry.
  • Request a contractual agreement that fully identifies expectations, fees, expenses, duration, and specific items or subjects the Consultant will provide within the time frame.
  • Don't be afraid to ask for testimonials that you can call, on your own, to get Honest feedback.  On this point, keep in mind that these testimonial handouts are kept close to the vest.  No one wants every John Doe calling their valued clients, only to spend hours on the phone asking green-horn questions.  When you become a client, will you be willing to receive x calls a week as a testimonial?  Probably not.  Be considerate of asking, and of any communications you may be blessed to have.

About DB44: DB44 is a software application development of Inspetta LLC. It is an ASP.Net application with MSSql Server, delivering performance enabled software and database solutions to business. One of the specialties of DB44 is MLM Platforms, where website, content management, site replication, admin management, distributor back offices, custom commission calculations, integrated eCommerce and more, must seamlessly deliver accurate results.

About INSPETTA LLC: Inspetta LLC leads the way in personalized services through our model of education and software development. The organization is lead by a passion to see the industry grow and change for the better, with sustainable companies focused on sales of real products and services to real people. Our "Performance through Passion" has led to numerous recognitions and achievements. On May 1, 2012, MLM Software USA and MLM Software Central were officially acquired by Inspetta LLC, a conglomerate marketing, sales and information technologies solutions provider. For more information, contact: 1-888-221-0106

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