Network Marketing Compensation Plans are Stupid

Ok...Now That I've got your attention let me explain what I mean.

I've had numerous debates with some very smart people and all they want to do is talk about the importance of compensation plans

They always talk about how a lot of thought goes into compensation plans and how a proper compensation plan is vital to a company’s growth and longevity.

Blah, blah, blah, blah blah....

Now please understand that I am not disagreeing with those who take this position. There is A LOT of truth in what they are saying.

My point is simply this.

Making a compensation plan that is super-complicated is not conducive to getting people in the business.

Here's Why

Most people don’t understand a 4x7 forced matrix with roll-up and compression with a 1-up bonus structure that pays infinity bonuses down to 12 levels. It takes a PhD to understand that as long as you've achieved diamond status and have 6 members with platinum status below you then you're eligible for the override bonuses on the 16the level...assuming of course you've met the BV and PV requirements.

Instead why don’t we just say...Get 4 who get 4 who get 4...and so on....and when this happens you'll make a boatload of money.

Let me put it another way.

Do you understand everything there is to understand about electricity?

But are you willing to flip the switch and get the light when it comes on?

Here’s the HARD CORE SIMPLE TRUTH of the matter.

If you can effectively grow your downline then you will get checks in your mail-box. Your income will grow regardless of whether or not you understand the intricacies of the compensation plan.

If you blindly join a business opportunity today and then you bring in 100 people tomorrow, then guess what...YOU'RE GETTING A CHECK!

But...

If you join a company, and you understand all of the intricacies of a the compensation plan but you don’t bring in a single person then guess what...YOUR NOT GOING TO GET A CHECK

It's pretty simple if you ask me.

So my suggestion is this.

If a company feels it necessary to have a complicated compensation structure then that’s cool. But from a marketing/recruiting standpoint my advice to you is to simplify the whole thing and just tell people:

"Hey...if you can get X people and those people can duplicate your efforts then you'll make X-thousand dollars a month"

Remember -- Keep It Super Simple.

If you try to explain a complicated compensation structure to a prospect then chances are that you'll confuse them.

And in Sales training 101 it states that- A confused prospect NEVER buys!