What Does A MLM Compensation Plan That Pays Part-Timers Look Like?

The fourth of the 5 Pillars for Success in a network marketing company is a compensation Plan that pays part-timers. But what exactly are the qualifications for this kind of comp plan?

Let's look at some network marketing industry facts.

1. 95% of any team in a MLM business is building it part-time
2. A fair compensation plan pays the most amount of money with the least amount of team members.

I know what you're thinking, "But there's so many different comp plans, and they all look like Greek to me. Is there an easy way to spot these qualifications?

Say hello to my little friend ... The $10,000 Question.

To cut through all the confusing compensation plan qualifications and achievement levels just ask, ”How many team members would it take to earn a $10,000 check?”

The $10,000 question gives you the answer quickly and easily. Here's how it works. Just divide 10,000 by the retail commission amount per item sold. The result is the number of team members required to earn a $10,000 monthly check.

Example:1

Let’s say a product earns a $2.50 commission per unit sold.
$10,000 (monthly check) ÷ $2.50 (commission) = 4,000 (team members buying 1 item per month)

Example:2

In this case the commission rate is $20.
$10,000 (monthly check) ÷ $20 (commission) = 500 (team members buying 1 item per month)

Which do you think is easier to build, a team of 4,000, or a team of 500?

If 95% of your team doesn’t get a dime, then you will have a problem. Retention in a company is easiest when there is a fair compensation plan. Using the $10K question is the easiest way to see if compensation plan pays the most money with the least team members. If the final figure is out of reach for average people, then I would start looking somewhere else.

Bill Tessore