The Best MLM Compensation Plan?
by Ted Nuyten on October 16, 2012
Many people send us the question, what is the best Network Marketing compensation plan, Uni-Level, Binary or Stair Step Breakaway?
Basically there are 3 comp. plans: Binary, Uni-level and Stair Step Breakaway compensation plans, however almost every company has it's own enhancements within those 3 choices.
We do not want to go into an academic discussion if company A or Company B has a better variation.
We have opened below a Poll, and you can vote once for your favorite compensation plan.
Binary compensation plan in short: Build up 2 teams / legs
The main earning objective of the binary compensation plan is to balance the amount of leg volume flowing through either side of your business centre. For example if you had 800 sales points flowing through the left leg of your business but only 500 points flowing through the right, you are paid out on the highest common denominator which in this instance is 500 points.
Uni-Level compensation plan in short: Go width
Unilevel, as the name suggests, only enables you to sponsor one line of distributors, therefore everyone you sponsor is on your frontline. There are no width limitations to this plan (ie there is no limit to the amount of people you can sponsor in your frontline) and commissions are normally paid out on a limited depth between 5 and 8 levels deep. Therefore, the common goal of this plan is to recruit a large number of frontline distributors and then encourage them to do the same.
Stair Step Breakaway compensation plan in short: Recruit new distributors and have good management skills.
The name Stair Step Breakaway is derived from the concept that distributors climb the ladder of success and when they reach a certain level they are allowed to break away from their upline distributors and run their organisation independently. As distributors break away from their upline this allows them to earn a greater commission.