As a general rule of thumb anytime you see a payout of more then 60% be suspect. It generally indicates that: •
The products are grossly overpriced, unless it is a unique product. • Qualification/Quotas some companies place ridiculously
high volumes or quotas. • Breakage/Break away several of the most popular programs out there use this one. Imagine
after all your hard work you miss your quota for the month only to have all your hard work building an organization disappear.
Most compensation plans fall into binary, breakaway, matrix, stair-step or uni-level plan.
Binary: First level is limited to two with infinite depth
Breakaway: Unlimited first level width, usually with a finite depth 10 to ? levels deep.
Matrix: First level width 2 to 7 usually 5 to 50 levels deep (more)
Unilevel: Unlimited first-level width with a depth of usually 5 to 10 levels (more)
Be wary of compensation plans that take people away from you just when you’ve made it big or raising the group volume
levels so high it would be impossible to reach them.
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