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Network marketing compensation plans
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Compensation plans in network marketing / Multi-level marketing vary from company to company. There are literally tons of ways to make them appear better on paper then they really are. Many companies use these deceptive tactics to exploit new network marketing prospects.

There are some plans out there that payout more then 100% fortunately these companies don’t last long but do end up hurting individuals and give the industry as a whole a bad name.



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.