The best type of comp plan is a binary with a twist. Now that probably doesn’t mean much to you and realistically this is a complex subject even when explaining a simple comp plan. Stay away from any comp plans that let you go wide. That means that you can sign up as many people as you like on your first level. The reason is because the only person that benefits from your first level is you. This business is all about helping others attain their goals and dreams and your goals and dreams will happen. You want a comp plan that helps as many people as possible. You also want to stay away from comp plans that “cut off” at a certain level. Again if they cut off at a certain level that means you can build wide on your first level. Simply look for a plan that makes you build deep not wide. That is why a binary plan is best. It requires you to build deep. Now most binary plans obligate you to build both sides evenly. That is where the twist comes in. There are modified binary plans that allow you to be compensated even if your business is not built evenly. If you have never been part of a network marketing business this is going to sound alien to you. Study various compensation plans so you can compare and get a feel for them. The best way to look at a comp plan is through the eyes of a person you sign-up. Ask yourself this, does my helping this new person succeed help me succeed? If the answer is yes then it’s probably a good plan. Another part to the compensation plan is the monthly purchase requirement. This is an obligation the company puts in place that requires that you purchase a certain amount of product every month. Usually that amount falls somewhere between $100 and $500 per month. Be very careful with this because the presentation doesn’t always come out a say what that monthly purchase requirement is. This is a sneaky way for companies to hook you with a small initial membership fee and then hit you over the head with a $300 per month bill. Taking $300 per month as an example gives you a $3,600 yearly expense just in products that you may not use. This one issue has left many people with a bad taste in their mouth about the network marketing industry. Do your homework!
