Multi-Level Marketing compensation plans fall into 3 general categories. Binary, unilevel and breakaway. With any of the variations of plans it is possible to make substantial money. All plans are designed to encourage and reward certain behaviors. It could be to grow volume or to grow legs or to increase the number of distributors or simply to keep balance within your organization. Most likely it’s some combination of these.
Most network marketing companies have at least a summary of their compensation plans available on line. You can’t always see the specifics and it can be difficult to determine “How much will I earn?”.
It would take an encyclopedia sized document to compare this companies plan to that companies plan and what you would have to do here to earn the most versus what you would have to do there to earn even more. I won’t try to do that. It’s best to know the plan of the company you’re involved with and what you need to do to maximize your income. Upfront income and residual income. (Refer to my last article)
The plan I am most familiar with and qualified to comment on is the LifeVantage plan. This plan is known as a “Unilevel Hybrid”. Simply stated, it’s a modified version of a unilevel plan. In the LifeVantage plan there are 5 bonuses or commissions.
Smart Start Bonus – Paid weekly
Launch Bonus – Paid weekly
Royalty Commission – Paid monthly
Generational Match – Paid monthly
Elite Pool – Paid monthly
The weekly bonuses reward getting started and creating momentum. These bonuses will put money into your pocket right away. The monthly bonuses are where you build residual income. This means that you will be paid multiple times per month. As the size and volume of your organization increases the residual income increases as well.
LifeVantage has 10 distributor ranks along with 2 additional ranks at the Master Distributor level. At Pro 7 you become an Elite distributor. That’s when you qualify for the Elite Pool which is a share in world-wide sales with all other Elite Distributors. When you achieve Elite rank, and maintain the volume for enough time you then qualify for the My LifeVenture program. The photo of the Jeep is an example of that bonus. There are other choices but for me, I’ll take the Jeep. LifeVantage gives me the keys and the title. Tracy and I have decided on red. What color do you want?