How to Choose Compensation Plans in a Network Marketing Program
Friday, October 7th, 2011So, you want to have a home based business. Evaluating a compensation plan in a network marketing program that you are considering is important. The right plan can ensure that you can make money when you enroll in the business as a member. If you are, for instance, considering joining a business opportunity program, it should have a compensation plan that assures you of your earnings in the future. There are several types of compensation plans and in choosing an online home based business opportunity, sorting out the payment plan is important. This can also be a telling sign if a business is a scam or not. Usually, get rich schemes are the work of scammers. Here are some of the most common compensation if you are thinking of making money online:
1. Unilevel program
The first distributor earns something from a person, any person, who can be traced back to that distributor even without direct connection. However, earnings eventually grow smaller as the chain connecting that first distributor to the other members down the line increases. This can be best described like a pyramid.
2. Binary level program
Each distributor in the business is only allowed to get two more sellers or members to join the network. This is pretty simple, efficient and effective because you only need two recruits. The network can grow quickly.
3. Rectangular hierarchy program
This is nothing sort like a pyramidal program. Each distributor is only allowed to have a certain number of people, in a limited way, to recruit. You can earn money through the commissions that you make off your recruits and those recruited by your recruits and so on. Your network ends with a limited number of people under you.
