As the estimate of Network Marketing Programs proliferate the estimate of Network Marketing cost Types growth as well. This report will gawk 7 types of Payments that a Network Marketer can receive. Many Plans hire Hybrids where they couple 2 or more of these cost types into their Pay Plans.
1 - Uni-Level Matrix Plans
Powerline Networking
This is often referred to by the un-informed as the Dreaded "Pyramid". A Unilevel Matrix allows you to have Unlimited Width and exiguous Depth. simply Point let's say that you are personally responsible for signing up 10 team members. You will earn a commission on all sales generated by your 10 Team Members.
(You could in fact sign up 100 or 1,000 or even 1,000,000 or more habitancy on your first level). Now lets Say each of your 10 Team members Sign up 10. Since 10x10 is 100 You will now have 100 habitancy on your 2nd Level. You would also earn commissions on all Sales Generated by your 2nd level. A Typical Uni-Level will pay down 5 or More Levels. If each someone were to continue to get 10 this would leave 1,000 habitancy on your 3rd Level, 10,000 habitancy on level 4 and 100,000 habitancy on level 5. A very promising but extremely unlikely scenario.
2 - Forced Matrix Pay Plans
A Forced Matrix is Similar to a Unilevel Matrix but it limits the estimate of habitancy each someone can have in their first Level. A Very beloved Kind of forced Matrix is a 3x9 Forced Matrix.
With a 3x9 Forced Matrix The Most habitancy you can have on Level 1 is 3. Now the most habitancy each of those 3 can have on there level 1 is 3 which leaves you 9 habitancy on your 2nd Level, A 3x9 Matrix By the Levels
- 3
- 9
- 27
- 81
- 243
- 729
- 2.187
- 6,561
- 19,683
- Total - 29,523
One benefit of a Forced Matrix is Spillover. Spillover occurs when you sponsor more habitancy then can fit on your first level. So if we use the Unilevel Example above and Assume everybody Sponsors 10 You Would not only completely fill your 3x9 Matrix but you would literally have enough habitancy left over to fill a 10th level of 59,049 and partially fill an 11th level of over 170,000.
3 - Fast Start Bonus
A Fast Start Bonus is Seldom the only part of the payment plan. More often then not it is used as an extra incentive to sponsor more people. The Fast Start Bonus is Typically a Lump sum cost of up to 100% of the First Months Membership for whatever you sponsor
4 - Sponsor Bonus
A Sponsor Bonus is often used with a Forced Matrix. It is usually a Monthly Recurring Bonus and is paid each month on everybody you personally Sponsor.
5 - Breakaways
Breakaways are used with Matrix Pay Plans. When a Team member reaches safe bet qualification they break away from your team and you no longer receive the Matrix Pay out on that team member or whatever in that part of the Matrix (the Break Away). You do however receive a Lump Sum Monthly Commission of the whole Volume of the Break Away Unit.
6 - Infinity Bonuses
Are often Used with matrix Pay plans. They allow you to earn down an Infinite estimate of Levels if you meet the Qualification. You could be blocked by someone on a lower level who also qualifies.
7 - Binary Plans
A Binary Plan is like a 2xInfinity Forced Matrix with a Twist. In a Binary you would have 2 Legs. You would typically earn a commission on the whole Volume of your weakest Leg. Many binary's have systems in place that may allow you to earn Commissions at a later (via a Carryover) on your Strongest leg.
While the pay plan is important. It clearly is only one small part of the Mlm you choose to join. You should look at the whole package, Pay Plan, Product, automated Tools. Store Size, Start-Up Costs etc.
7 distinct Mlm payment Types Explained