MLM Compensation Plan Requirements

I came across a notebook I kept when I first started studying MLM's and Network Marketing. I came across the 2 key requirements a compensation plan should meet. I hadn't thought about it again once I had found a company that met those standards. But reading my notes also brought back a memory of why I went looking for the information.I keep thinking back to something that happened with the first MLM company I joined. This was the turning point that turned me off to the company.It was during a Sunday night online team meeting in a webinar. We were discussing using domain names in order to personally brand ourselves. Something I knew the importance of and had been encouraging others to do.I made a reference to use GoDaddy.com and was going to also mention their affiliate program when the team founder interupted me.She stated using GoDaddy for domain registration was a terrible idea, because after a year the subscription renewal rate went up and was too high. She gave an example of a girl she knew that couldn't afford the $50 to renew her domain after her first year expired. (Note: GoDaddy's renewal rates vary depending on which type of Motorcycle Gloves domain you get and which upgrades you choose, plus the team leader was most likely exaggerating because the renewal rates were half that at the time)This shocked me. My jaw dropped and I was left with nothing to say. Which is also surprising because I love to talk.How is it that after a year in Network Marketing she could not afford to renew her domain? I didn't see the problem being with the increase in the rate. The problem I saw was that after a year of working everyday, all day, for a year to build up a sizeable downline, she still couldn't meet the expense to renew her domain name.I looked ahead to the next year I would be having with this MLMcompany and realized the compensation plan was not all it was cracked up to be. I started doing my research on companies and found that it takes just as much work to make a big sale as it does to make a little sale. Why shouldn't I be able to be paid a higher commission up front? If I took all Nail Sticker the effort that I had already put into my few weeks with this MLM company and applied it to a company with greater payout. Then I could make in one sale what took me more than 10 with the MLM company I was already with.That was a no brainer. The saying "work smarter, not harder" was ringing in my ears.So, from my notebook full of precious info (I was a professional college student for years, I take good notes) was the excerpt about what to look for in a company's compensation plan.1. High upfront commission. Again, it takes the same amount of effort to create a small sale as it does a big sale. Marketing a higher priced item is just as easy as a smaller priced one. Our own second thoughts about our capabilities to market them is what holds us back, not a lack of prospects. A larger payout on the front end builds momentum for your business. Multiple small sales = small commissions = burn out.2. Residual income. This is your retirement fund. This is continuing income flowing from work you already did. This isn't new money from a new sale. This is money that keeps coming to you, even if you don't make new sales.These are the two standards to choosing a compensation plan. Join a company that meets these requirements, and there's no worries about renewing your domain.

The Same Blog Website:
http://clock-temperature.blogspot.com/2011/12/want-a-z-affiliate-marketing-system.html