Network Marketing Compensation Plans

Chapter 1: More Than Just Circles

Compensation plans are more than just circles.

Just as no two people can truly be the same, it is very rare that plans in two different companies can be designed exactly the same arrow by arrow. Let me establish some facts first.


If you were given a choice, would you rather sponsor someone who doesn’t know network marketing or someone familiar with network marketing?


The reason most people would choose the second option is simple, you don’t need to spend so much time training them and they would bring results well on their own.


Now where would I find these types of people? Of course, in other network marketing companies!
But it is not that simple to get those guys over. In life, however, there are no guarantees. You will never know when circumstances will change, when that person might have fallout with his upline or his company might collapse and they might just be hunting for THAT one new opportunity to bring their people to. Timing is important!


Now, some networkers might not agree with me that people might join a new company because of a superior plan. They say it is because of the leadership, influence or confidence that the upline projects. Now I don’t disagree with them. But consider this, how can you be confident, influential or a good leader without thorough knowledge of the plans in the industry? And, if the prospect happens to be obsessed with marketing plans, saying the right word at the right time would nab you a sale!


Now that we have set the record straight, knowing your plan and their plan well will bring you one step to closing a new sale or sponsoring a new distributor from another company.


You may think pinching other people from other companies might be unethical, but this is a dog eat dog world we live in. Given the chance, I believe ‘they’ would love to pinch your downlines as well. (DO NOT attempt this WITHIN your company as line pinching in the same company can often lead to termination of your distributorship) I am not running a course on ethics here; it is up to you to decide what is best for your business. But my belief is this: if I believe my company offers a better product and opportunity to earn income, I would recruit other networkers. Competition is good for companies anyway.


Equally important also, I don’t want to lose my downlines to other networkers as well. Of course, if they decide to leave for whatever reasons, I won’t hold them back because it is THEIR business, not mine. But I want to make sure they don’t get pulled over because of my incompetence as a leader and lose my source of income as a result. This usually occurs when the upline leader is ineffective and deserves to lose his downlines to other networkers because they never trained them well enough in the first place.


Now that we are clear about knowing our own plan and all the other plans ‘out there’, I strongly encourage you to go to as many opportunity meetings as possible to learn all about them (just make sure you don’t get pulled over or your upline will kill you.)

Introduction (Prev Lesson)
(Next Lesson) Chapter 2: Terminology and Jargon You Can’t Live Without
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