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  1. #1

    Compensation Plans - Discussion

    For the mean time as this forum seems to have taken a positive turn, I'd like to start a general discussion on compensation plans. I am not in MLM but would like opinions from people who are or have been. Here are some general questions that I have. Feel free to add more.

    1) Can you list a brief description on each plan ?

    2) What are the most popular plans ?

    3) Which plans are good for building a strong downline ?

    4) Which plans start building income quickly ?

    5) Which plans do you feel are the most sustainable ?

    6) Which plans are susceptible to pyramid/ponzi abuse ?

    7) Which plans would you avoid ?

    Thanks guys. Have fun.

  2. #2
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    Re: Compensation Plans - Discussion

    Well, my question would be, why do you even need some convoluted compensation plan in the first place that nobody understands? Why do you need breakaways and all that sort of mysterious language?

    If retails sales are involved, which they're suppose to be, why can't you just tell a person in simple language you get X% for a sale. If somebody they know joins the company, you get X% on their sales and so on.

    Spell it out in plain language. Why obfuscate the details? Are the companies deliberately trying to hide the true facts of the comp plan in some esoteric language to fool the newbie?

    Something I've always wondered about.

  3. #3
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    Re: Compensation Plans - Discussion

    Quote Originally Posted by Doc Bunkum View Post
    Well, my question would be, why do you even need some convoluted compensation plan in the first place that nobody understands? Why do you need breakaways and all that sort of mysterious language?

    If retails sales are involved, which they're suppose to be, why can't you just tell a person in simple language you get X% for a sale. If somebody they know joins the company, you get X% on their sales and so on.

    Spell it out in plain language. Why obfuscate the details? Are the companies deliberately trying to hide the true facts of the comp plan in some esoteric language to fool the newbie?

    Something I've always wondered about.
    What is hard about it? If I refer someone to my company and they buy product, I receive X% of that volume; if they refer someone they receive X% and I receive Y%, and so on. Where is the difficulty.

  4. #4
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    Re: Compensation Plans - Discussion

    Quote Originally Posted by noagenda View Post
    For the mean time as this forum seems to have taken a positive turn, I'd like to start a general discussion on compensation plans. I am not in MLM but would like opinions from people who are or have been. Here are some general questions that I have. Feel free to add more.

    1) Can you list a brief description on each plan ?
    Here is a very good article describing the 4 main plans.

    2) What are the most popular plans ?
    Most popular these days appear to be binaries and unilevel plans.

    3) Which plans are good for building a strong downline ?
    All of them. Large downlines have been built in all 4 of those plans.

    4) Which plans start building income quickly ?
    Probably the unilevel.

    5) Which plans do you feel are the most sustainable ?
    All 4 of the main plans.

    6) Which plans are susceptible to pyramid/ponzi abuse ?
    The type of plan is irrelevant, its all about the motive for buying the products.

    7) Which plans would you avoid ?
    Aussie 2 up plans.

    Thanks guys. Have fun.

  5. #5

    Re: Compensation Plans - Discussion

    Quote Originally Posted by ChrisDoyle View Post
    Here is a very good article describing the 4 main plans.



    Most popular these days appear to be binaries and unilevel plans.



    All of them. Large downlines have been built in all 4 of those plans.



    Probably the unilevel.



    All 4 of the main plans.



    The type of plan is irrelevant, its all about the motive for buying the products.



    Aussie 2 up plans.
    Thanks Chris. Excellent link. It will probably prompt more questions/comments from me later after hopefully more feedback from our members.

    One additional question has come to mind.

    Which type of product(s) best suits a particular comp plan ?

  6. #6
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    Re: Compensation Plans - Discussion

    Quote Originally Posted by noagenda View Post
    Thanks Chris. Excellent link. It will probably prompt more questions/comments from me later after hopefully more feedback from our members.

    One additional question has come to mind.

    Which type of product(s) best suits a particular comp plan ?
    High quality nutritional products for all of them.....but I'm a bit biased yb:

  7. #7
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    Re: Compensation Plans - Discussion

    Funnily enough, the largest and oldest MLM in the world isn't well described any of those descriptions.

    New to scam.com? This is what you can expect from MLM critics in support of their claims ....


    Why the f-u-c-k do you need evidence all the time? - Zapticon
    You know that I don't provide proof of my claims - Once Upon A Time
    I have the information but I'm not posting it - Joecool


  8. #8
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    Re: Compensation Plans - Discussion

    Quote Originally Posted by IBOFightBack View Post
    Funnily enough, the largest and oldest MLM in the world isn't well described any of those descriptions.
    Stairstep breakaway.....or am I wrong?

  9. #9
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    Re: Compensation Plans - Discussion

    Quote Originally Posted by Doc Bunkum View Post
    Well, my question would be, why do you even need some convoluted compensation plan in the first place that nobody understands?
    product differentiation. Companies trying to improve perceived deficiencies in the basic model to make their opportunity more appealing.

    Why do you need breakaways and all that sort of mysterious language?
    Well "breakaways" happen in traditional business to, it's just given a name here since it's not just "lost" like in traditional business

    If retails sales are involved, which they're suppose to be, why can't you just tell a person in simple language you get X% for a sale. If somebody they know joins the company, you get X% on their sales and so on.
    Why doesn't that happen in traditional business?

    Spell it out in plain language. Why obfuscate the details? Are the companies deliberately trying to hide the true facts of the comp plan in some esoteric language to fool the newbie?
    Sometimes this stuff has kind of grown organically and gets confusing because new bonuses and incentives are added. Then of course a new company comes along and copies the plan and adds their own ideas etc etc.

    I don't think it's usually nefarious, but I agree it gets overly complicated

    Something I've always wondered about.

    New to scam.com? This is what you can expect from MLM critics in support of their claims ....


    Why the f-u-c-k do you need evidence all the time? - Zapticon
    You know that I don't provide proof of my claims - Once Upon A Time
    I have the information but I'm not posting it - Joecool


  10. #10
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    Re: Compensation Plans - Discussion

    Quote Originally Posted by ChrisDoyle View Post
    What is hard about it? If I refer someone to my company and they buy product, I receive X% of that volume; if they refer someone they receive X% and I receive Y%, and so on. Where is the difficulty.
    Where's the difficulty you ask?

    What's someone to think when they're presented a diagram like this:



    But, I suppose when a person has been in as many MLMs as you have, it starts to make sense after awhile.

  11. #11
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    Re: Compensation Plans - Discussion

    Quote Originally Posted by Doc Bunkum View Post
    Where's the difficulty you ask?

    What's someone to think when they're presented a diagram like this:



    But, I suppose when a person has been in as many MLMs as you have, it starts to make sense after awhile.
    What is difficult about that diagram, it made sense to me after about 20 seconds of looking at it?

  12. #12
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    Re: Compensation Plans - Discussion

    Right.

  13. #13
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    Re: Compensation Plans - Discussion

    That's apart from the fact that a new joiner doesn't need to be an expert on the plan on their first day, just show them the initial basics rather than confuse them with the whole thing at once.

  14. #14
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    Re: Compensation Plans - Discussion

    Regarding that compensation plan I included above as an example of being unnecessarily complex....



    .... the author on the site I snagged it from had this to say about it:

    Nothing prepared me for the absurd complexity and unnecessary headache that is the Sisel compensation plan.

    After four or five days of trying to get my head around it I finally think I managed to present in a way that’s understandable.
    But even I’m painfully aware that my break down still reads like something that was designed for math nerds.

    Forget the company history and forget the product line, as far as success with Sisel goes you’re going to have to spend countless hours studying their compensation plan if you want a hope in hell of explaining to new members how they’re going to get paid.

    As someone who’s reviewed hundreds of MLM company compensation plans, if it takes me four or five days just to get my head around it god help Joe Average when he’s trying to do his due diligence.
    Yet Chris Doyle claims....

    Quote Originally Posted by ChrisDoyle View Post
    What is difficult about that diagram, it made sense to me after about 20 seconds of looking at it?
    Made sense to you after 20 seconds? Half the diagram is missing.

    As I said... Right.

  15. #15
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    Re: Compensation Plans - Discussion

    Quote Originally Posted by Doc Bunkum View Post
    Regarding that compensation plan I included above as an example of being unnecessarily complex....



    .... the author on the site I snagged it from had this to say about it:



    Yet Chris Doyle claims....



    Made sense to you after 20 seconds? Half the diagram is missing.

    As I said... Right.
    And you wanted me to make a judgement on the part that was missing? Right. I stand by my comment on the part that was there. If you have any questions..

  16. #16
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    Re: Compensation Plans - Discussion

    Doc, are you under the impression that you need to explain the whole compensation plan to a new distributor?

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