So sorry MonaVie, eXfuze, XanGo, Vemma... the retailers have taken your consumers. :(

Adding on an earlier blog about business fundamentals...
as how a recent advertisement shown very regularly on prime-time TV goes:

"Acai berries... Blueberries... Raspberries... Mulberries... and Cranberries... Five natural antioxidants, one perfect herbal blend. New no sugar added PowerBerries Juice!".
[Background advert text: Power of 5. Combined power of anti-oxidants (vitamin C).]

This is the latest marketing pitch by one of South Asia's largest retail beverage producers.





Not only that, they've also got another Mixed Fruit Mangosteen juice among their extensive range!
Another range called Fruit Tree has "Carrot Mixed Fruit Juice with Wolfberry Juice" & also "Pomegranate Mangosteen & Mixed Fruit Juice".

NOW putting on your business thinking-caps again... industry researchers, mlm folks (including those starting to look at building an income via network marketing or a home-based business):
the big-picture benefits of running a network distribution business on multi-level commissions are truly wholesome & great.

BUT does it make sense for you to compete with a mass-market retailer who has undercut your superfruit / superfood blend's price??

MonaVie, XanGo, Vemma / New Vision, eXfuze, 4Life Riovida, FreeLife Goji / GoChi, Morinda / TNI, ViaViente / Via Viente, Intra, Fruta Vida, etc.
ALL are EXCELLENT juice / herbal supplements.

But it is now a confirmed fact that 99% of your prospective liquid-nutrition customers will argue back at you with double-enthusiasm, when they learn that they can get PeelFresh Power Berries or FruitTree Fresh at a friggin' US$5 or LESS for a whopping 1.89 litres (64 oz)!!

Prospective consumers / members will get utterly confused when pitched $50-80 for each 1 litre (32 oz) bottle of the above direct-sales brands sold via independent distributors.

More likely than not, being humans they will simply opt for the lower-cost alternative.
This time round, Peel Fresh PowerBerries & Fruit Tree Fresh win the price war hands-down. As for the marketing war, well...
don't forget the catchy mass-market advert (see above youtubes!) running non-stop on most mass media avenues.

What catchy TV spots they are!
With such heated retail competition, the only type of direct-selling / direct-marketing companies that can match up for juices... would be TV or Home-shopping, and unfortunately not mlm / network-marketing.

---

Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!
Especially if its Equal or LESS than retail brand prices in shops.

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The crux of matrix plans & spillovers.

Putting on your business caps...
we all know that any traditional revenue-generating business achieves its regular business revenues from only a proportion of its full customer-base.

e.g. not all coca-cola drinkers consume coca-cola regularly.

Of course, generally speaking, there might be X number of loyal customers who might consume "ABC" brand daily but that's an ideal situation and besides the point -- lets talk big picture in reality!

Which leads us to networking... where it is the same as any traditional biz, company "DEF" can claim it has XXX,XXX numbers of distributors / consumers. It is always the case, that only a % of the distributor / consumer base are actively buying &/or promoting product on a regular basis.

In terms of matrix compensation plans, it does not matter how big your upline claims his team / organisation is -- & how it will spillover into your own downline "by default" which will generate "business for you" even if you did not refer anybody to the business / product.
Do you realise it is actually how many direct-linked uplines that are active in the business that will contribute to the actual spillover in your downline organisation.
Not forgetting, if YOU are contemplating registering a membership position and "sitting there" for spillovers without doing any work, imagine how many others are relishing that situation too? LOL.

The main post discussing matrix plans is here.

Take a pen & paper. Draw an imaginary line from you (dot #1), to your sponsor (dot #2), to his/her upline sponsor... all the way to the master distributor who sits at the top of the organisation.
i.e. the first guy in the business who the company put in charge of the entire network.
(You may throw in a couple dots in between each dot you drew earlier, if & only if every dot is a "capable recruiter" who brings consistent business throughout his career with the company. In reality we know most networkers cannot, or will not. Also in matrix compensations there are 3 or more legs in which to spillover additional new members -- which dilutes the situation exponentially.)

In real life, perhaps 30% of an average organisation is actually buying / promoting product. Lets be generous and say 50%!
That means you are left with only half (or less!) of the dots you drew earlier -- who will contribute in "building your downline" for you.

To cut the long story short, no matter how massive a company says its distributor/consumer database is (e.g. 300,000), it could very well be 10 dots or LESS (who contribute to spillover) linking you to the distributor who is above everyone in the organisation tree. This is just how business dynamics is in real life.

In comparison, modified-binary plans can truly let you "stop at 2" personally sponsored downlines, thereafter you benefit from FULL comp plan benefits while the business expands. Keyword being "can", because 90% of binaries / modified-binaries still come with many unseen conditions that require you to keep recruiting beyond 2. (Do your research and you might chance upon such a generous organisation -- hopefully this post can help you in that respect.)

Of course, the most taxing pay plans remain to be unilevel / stair-step, where your business building success almost entirely lie in your own hands. i.e. each & every sponsored downline in your organisation has to start from your effort. Meaning you have to bring a "frontline" of personal downlines, and from there they help you (& themselves) expand the organisation in the same way. No spillovers. In some old-school payplans like these, some uplines resort to "giving" downlines a few leads to personally sponsor (sort of like a spillover but only out of goodwill), BUT note that this opens up a can of worms policy-wise where the distributor is liable to be terminated.
Especially when networking is a human-to-human business, and a very primal human instinct is still involved -- jealousy! Rival teams or unhappy peers / crosslines may report such activities to your company's compliance department.

In conclusion, spillovers are great. But by making that fateful decision to be a part/full-time networker, you must be professional -- be responsible and do your minimum to drive a successful business for yourself.
The minimum? Sponsoring and recruiting, of course!

Once you are expending minimum effort, you will be growing an organisation no matter if its a matrix / modified-binary plan.

---

Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

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Matrix, Matrix, & more Matrices

Following on an earlier post...
Just in case you are caught up in one of the new web hypes by David D’Arcangelo (of PrePaid Legal, GBG, AMS Health Sciences & etc fame / infamy),
here is good info to ponder!

There's something going on VERY recently about a "new" setup promoting that its the "single-most profitable" solution to "internet marketing with network marketing" (<-- LOL, guys, most workable systems have been featuring this combination, duh!!)...
this recent one is called WebProsperity or Web Prosperity.

The "newness" has not failed to capture the attention of key names who are the usual internet marketing-only professionals we know. Have they really done their research before jumping on the marketing bandwagon??

Anyway, success in networking is all about finding a true home that you are comfortable with, & setting your personal objectives of working at it!
Is WebPros it?? If it is, go for it, learn what you can to take it to the next level in/out of the program.

Herewith is an excerpt from a post by a well-known industry consultant...

---

A MATRIX PAY PLAN STORY HEARD TOO OFTEN

Editor:
Note this report is from a disgusted French subscriber written in first-person format. Profanity has been cut out!

Matrix Pay Plans - guess what? I have been disappointed every time I joined one. Not because I didn't get any spillover, many times I got plenty of spillover, but I didn't make any amount of money. Why? Because there was only so much my upline could do for me, they could only put so many people under me, and they could not qualify me to earn at higher pay levels. In the end, it depended on me to continue the growth. I won't get into the details of how Matrix Pay Plans and spillover works, I will assume you, as an expert, are familiar with the concepts.

Editor's Comments: What people don't understand is that each time a person joins a Matrix pay plan a complete new Matrix opens underneath them. So if we are to look at spillover, by the 5th level there are 24 positions to be filled by YOU. If your upline is going to help you, he has to wade through 86 (4 other distributors) positions before he gets to drop just 1 new distributor on you!


EDITOR'S COMMENTS ON THE MATRIX PAY PLAN

What I want to emphasize here is that no company in its right mind, MLM, Affiliate or home party or even non-MLM, will pay you for doing nothing. All compensation plans are designed to reward those who generate business. Even IBM only affords to pay those individual salespersons who create growth for the company, otherwise, they are out the door!
MLM – Network Marketing companies are much kinder, they just pay you for what you do. So if you join a MLM company with the hopes of making money by getting lucky, You aren't going to earn much. You may receive some small checks (hopefully get your money back), but nothing to write home about!

So when people get suckered into a matrix plan, remember this..... failing to make money in a Matrix Plan by depending on spillover, it is not the Matrix Pay Plan that's failing, it is the individual that's failed because they stood around not doing anything. Most Matrixes show big money at the bottom. Down there where the money is…. only the most dedicated builders ever see a check for the piles of money displayed.

In addition, most of the criminal High Yield Investment Programs (called HYIP) use a Matrix Pay Plan and are basically Ponzi – Pyramid schemes. They lay in wait for people that get suckered into the "spillover" suck of the HYIP's Matrixes (Search HYIP Scams on Google).

I am sure there are people who will argue that there are opportunities out there that have no sponsoring requirements, all you have to do is sign up and make money with them. Well, all I have to say to that is that they won't last. It simply doesn't make business sense. Why would someone want to pay you for doing nothing?
2x2 Matrix Pay Plans make it easy to teach duplication to your downline. But, they are massively eclipsed (blown away) by the Binary Compensation plan because money from 40-50 levels rolls up to your position. How can I say this? There is a 95% failure in new MLM Companies and only 1 out of a 700 Matrix plans will survive (True Statistic).
In the Binary / Modified Binary (like a 2x2 Matrix), just 2 people are allowed on your first level, then you teach everyone in your downline to get their 2 (the rhythm of nature). Then help the people under them to get their 2 and so on. Spillover from all the activity can help speed up the growth and create momentum for the Binary team because if you sign up someone 43 levels below you, the money flows up through your whole team.

THAT is real true spillover!

---

Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

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Business Longevity -- Practicality!

A genuine long term business requires all angles of its operations to break barriers:
- cultural (race, language, religion, etc)
- physical (environment, country borders, etc)
- virtual (mental perceptions, the world wide web (internet), etc)
Businesses which run with the least obstacles & limitations will be more likely to accomplish success.

As we've discussed in earlier posts, a business compensation plan which is beneficial & easily applicable & understood (by all participants) breaks across the above barriers easily.

After a company has its infrastructure (admin, logistics, management, etc) set in place, and the marketing group / team has been selected to provide better than average mentorship, guidance, training & support... the most important factor left to select would be the product / service.

Because of the nature of direct marketing / network distribution, a product / service that can cut out as much Time needed to understand the product / service itself will prove more successful than others.
(e.g. attending seminars / meetings are great, but is an extremely time consuming process.)
Word-of-mouth recommendations are powerful, but the circumstances during most brief interpersonal encounters do not allow much time flexibility.

Note:
- a business where trainings / meetings / seminars are emphasised with little reference to products at the presentations / meetings (or treating products as secondary to other aspects of business) would bring about government / authority intervention due to pyramid-like operations;
- likewise, a business where a product / service can be put aside (or even bypassed!) would border on questionable (legal) business practises;
- When the above happens, business longevity & popularity is compromised.
In fact, both the above situations had presented itself very recently (Nov '07) in 2 different developed countries & publicly-received companies.

A) "Education" products

One which requires online/offline reading, watching videos, listening to audios, attending classes, etc.
Think about this:
- is the whole population equally literate, i.e. able to read/watch & fully understand the material presented to maximise its worth?
- the (relatively long) time required to "consume" the product/service?
- the environment & technical equipment required for the activity to be carried out.

B) "Create-a-demand" products

One which the common population have not heard about & requires a product story be told about its origins, traditions, etc.
Think about this:
- is the story easily believable & understood, & then repeated by newcomers?
(a small element of doubt presents itself as an obstacle.)
- (even if multimedia is available) do you / prospective customers need to spend time to learn about the story?
- can the story be told anyplace anytime (in person / video) or must the prospective customer be (mentally) prepared for the situation?

C) "Scientifically heavy" products

One which contains new technology, or more than standard research & development (e.g. "world's first patented xyz element extraction process", "ingredient is found only in xyz region of earth & evaluated by xyz laboratory", etc.)
Think about this:
- are technical equipment required to introduce / evaluate product's effectiveness?
- are special research medical / experts required to substantiate / explain the claims?
- is time needed for any of the above?
- do you need to carry around documents / literature to back up product's claims?

D) "Tablets / capsules" products

No doubt, your brand might be of a higher quality or manufactured with higher standards, but...
Think about this:
- can the ingredients / benefits be found in many other brands?
(2 or 3 competitors are fine, but 10 or more doesn't make business sense in terms of efforts needed to justify how yours is better than theirs.)
- does the product only apply to a niche group of consumers (see below)?
- is it competitively priced?
- can the consumer make a split second decision on selecting your product / brand or second-guess his/her own decision?
(if he hesitates, you might lose the sale.)
- will you be potentially asked "why this brand & not the other one"?
- is time needed for any of the above?
- do you need to carry around documents / literature to back up product's claims?

E) "Widely available" products

Again, no doubt your brand might be of non-toxicity, or a higher quality / standard (e.g. appliances, aromatherapy, toiletries, home consumables, etc.), but...
Think about this:
- is it available in every single convenience / department store?
- is it available in every single distribution channel available (Retail / MLM / Mail Order / TV / etc.)?
- is it competitively priced?
- will you be potentially asked "why this brand & not the other one"?
- is time needed to reason that?

F) "Liquid / Juice" products

The acais, mangosteens, gojis, gaks, nonis, durians, any other herbs, "super" fruits, & all their derivatives.
Think about this:
- do you wanna start comparing ORAC values, placebo tests, & whatnots like what everybody has been doing since the beginning of time?
- will you be potentially asked "why this fruit/herb drink & not the other brand"?
- liquids are dense (heavy); bottles are bulky; for the same weight you may carry many more servings of non-liquid products/services to promote.
- because of the weight, liquids are more expensive to ship (especially international shipments) and the additional cost to the company is transferred down to the end-consumers / distributors.
- liquids are not legal inflight on airplanes; how are you going to conduct a dynamic international business if you're travelling to a meeting in a market which cannot / has not received your product in conventional ways?
- shipping liquids oneself to prospective customers / distributors is simply NOT possible due to postal laws / regulations!
- aside from heavy liquid shipping costs, these products are usually not affordably priced due to the marketed uniqueness -- in this way limiting your potential customer base.
- when you share a portion of the product (usually $20 to $40 per bottle) with a prospective customer, e.g. quarter bottle is $5 or more, that means every 50 unsuccessful sharing sessions equates to $250 or more invested in business expenses without any returns.
What happens when you cannot give away quarter bottles because of professional / hygiene reasons?! The costs!
- aside from good taste (preferably it is good to begin with!), these products usually do not produce immediate impact / gratification / results of its core benefit; it usually takes 3 days / 3 weeks / 3 months!
- what is the overall time to decision?

G) "Niche market" products

The fuel / gas saving devices, travel / holiday packages, spa services, health analysis systems, weight management / health programs, biomagnetic items, bio-inducing items, gold, jewelry, currency, precious collectibles, women-only products, men-only products, etc.
Think about this:
- do you own / operate the device that requires the product?
- did you already plan to travel? are you the decision maker?
- are you already inflicted with the particular condition that the product / service provider treats? (even if the customer isn't inflicted, time is needed to convince him/her if he wants to prevent the condition "in future".)
- did you already want to accessorise your wardrobe & wear bling-blings?
- did you already want to start a new hobby collecting precious metals?
- do you belong to the sex (gender) / age group that the product / service targets?
- if not, do you need to spend time creating a need for any of the above?
- or is time needed to convince yourself / others for any of the above?


A consistent factor in all the above is: do you want to spend the (tremendous amount of) time sifting & sorting person after person to see if he/she qualifies to be a customer (be it cost, practical application to his/her life, etc), as compared to a unique Mass Market product / service easily understood by people from everywhere & all age groups.

Conclusion

Which leads you to a potential solution to select this "perfect product" for a truly successful direct marketing / direct selling business.
It is not hard at all to find it in this modern day with technology, etc. Open your mind & just start looking.
Find one which has the following characteristics & your business will be set for a long time until a copycat comes along and tries hard enough to knock it off:

• Portability
  (lightweight & easy to carry around world-wide)
  
• Ease of introduction
  (preferably little to no time needed by customer to understand the product; no story needed; no demand to be "created", especially if it already exists)
  
• Affordability
  (people from all financial backgrounds / status can use the product or business)
  
• Mass Market
  (people of all ages & backgrounds can consume it)
  

It is as simple as that!

See here to select one by potential income.

---

Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

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Pay Plan Reference Guide

The following is a quick reference guide of major companies and their respective distributor compensation plans.

See here for tips on finding the most suitable network distribution product.

With knowledge of how modern day participants like to get involved in network distribution programs with as little personal recruitment possible & more teamwork / groupwork (see earlier discussion)... we shall only evaluate plans that make feasible for the common person potential high income with the fewest possible "pay legs" & personal introductions.

Note that:
- 1:2 leg ratio growth is a natural progression of an organisation, not an "obstacle" -- i.e. 1:1 growth is abnormal / unnatural;
- a "common man" should focus on building 2 "pay legs" instead of 4, 6, 8, etc legs as it will dissipate business momentum (additional legs play into the picture only for Leader-distributors);
- fast start & retail sales commissions have been left out to look at the potential Big Picture (big income);
- single-level matching bonuses are liable to be bypassed by cunning downlines;
- though companies pitch that bonuses have no maximum figure stipulated (thus claiming "unlimited' income potential) evaluations should be conducted from the perspective of a common man who more likely will not qualify for said bonuses based on 2 referrals.

It is also said that DSA statistics have shown historically that the average MLM participant personally sponsors 2.x downlines, hence business plans based on 2 personal referrals are only natural at this point of the early 21st century.

It is not an exhaustive list, so feel free to add on or correct us by emailing us. Also, please do email if you find any typos / companies out of place.
This list will be updated as & when payplan modifications take place.

Unilevel / Breakaway
(for simplicity, 3 or more frontlines)

Amway (aka Quixtar; distributors try to build "pipelines" i.e. indirect sponsoring by downlines, which are against company policy & liable for termination), Tupperware, Nu Skin Enterprises (aka Pharmanex, Big Planet, etc; features reduced breakaway), Forever Living Products, 4Life Research, Long Far International, Enliven (features binary hybrid), Unicity Networks (aka Rexall Showcase / Sundown), XanGo (distributors try to build like binary while some build traditional unilevel resulting in unstable income), Freelife International, Univera Life Sciences, Lifestyles, Herbalife, Zija, Vitamark.

Forced Matrix

Amigo Health Labs Inc (ceased ops), Fruta Vida, Liberty Health Net (LHN, LHN International), Melaleuca.

Dual-team / Binary / Modified Binary
(1 Business Centre & 2 referrals)

Any unlisted company bonuses means you do NOT qualify for it with 2 personal business referrals.

- Usana Health Sciences
(USD 1k/week max; by "cycles"; 100/200 pts monthly autoship; 1:1 leg ratio; 5k carryover vol; highest achievement based on 2 personal downlines -- Gold Director;
Usana requires multiple re-entry positions / BCs to earn more than 1k),
- MonaVie / Monarch Health Sciences
(USD 1.5k/week; 100/200 pts autoship; 5% L & 5% R (aka 10% weak leg on 1:1 leg ratio); up to 2 generations of matching bonus (rate varies; based on 2 sponsored downlines); do not qualify for Car program; highest achievement -- Silver Executive),
- Isagenix International
(250 cycles/week; @ 900 pts cycles; 100 pts autoship; 1:2 leg ratio with at least 2 active personal referrals; 12k carryover vol; unilevel hybrid up to 4 generations; earn only from local market product volume, until sponsoring 5 active referrals do you earn from international volume; additional bonuses only upon sponsoring 10 active referrals; highest achievement -- 2 Star Golden Circle Executive),
- Agel Enterprises
(USD 6.25k/week; 100/200 pts autoship; 10% weak leg; 250k carryover vol; varying matching bonuses up to 4 levels & from 6% with high vol requirements; max $500 monthly Luxury Car & Travel Expense Bonuses; up to 20 (!!!) high-performing active personal referrals required for other bonuses; highest achievement -- Senior Director),
- CyberWize
(USD 7k/week; by cycles; 75/50/100 pts autoship (100 required for bonus qualifications, e.g. Free Car program); 20% - 33% weak leg; 1:2 leg ratio with at least 2 active personal referrals; up to $1,200 monthly Car Bonus; various single-level matching bonus but 10% if based on 2 sponsored downlines; also has retail "4 customer" rule before releasing commission cheques; highest achievement -- Senior Director),
- Agape Superior Living
(USD 10k/week max, or USD 50k/week (i.e. up to 625 cycles/week) for "gold startup" with only 1 chance at signup; 30/70/140 pts autoship; 2:3 leg ratio; bonus pool & other exec bonuses only if you sponsor 6 or more active referrals; highest achievement -- Sapphire Club),
- Enliven International (ceased ops)
(USD 14k/week; 100 pts autoship; 10% weak leg; single-level matching bonus up to 5k/week on each direct referral; features unilevel hybrid which will require multiple legs & more than 2 referrals),
- Success University (ceased ops)
(USD 20k/week (i.e. up to 250 cycles/week); monthly tuition (autoship); 1:2 leg ratio; at least 2 active referrals; carryover vol; earnings per referred student depends on the numbers each one personally sponsors (5 to 30 students!!); highest achievement -- Student (!?!),
- Synergy Worldwide
(USD 20k/week; 80/100 or 120/150 pts autoship; 10% weak leg; single-level 100% matching bonus limited to 5k if you are not a high-performer),

- bHIP Global

(USD 25k/week; 20 pts autoship; 15% weak leg (recent promo @ 30%); 1:2 leg ratio; 250k carryover vol; Rookie bonus; & depending on # of dual-team autoships: a simple 20-20-10% three-level matching bonus, $1.5 mil one-time cash bonus, & up to $2,000 monthly Car Bonus; highest achievement -- Double Diamond Global Leader).

---

Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

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Something Big that's often Misunderstood...(2)

To conclude our earlier discussion on the various network marketing compensation plans...

So... yes, some of you have guessed it by now, we'll be discussing the Dual-line Payplan.
(Also known as dual-team, 2-team, dual-leg, 2-leg. And, sometimes mistakenly labelled a "binary" for the wrong reasons.)
Read on and perhaps you'll understand the common misunderstandings a little better.

Some facts of Dual-Line compensations:

• Gives a distributor the power to choose to stop at 2 referrals.
  (or as few as they want, as long as it is more than 2. See Point 3 for an elaboration.)
• No monthly / weekly "minimum" group product volume targets.
  (some companies do though.)
• Marginal initial organisational growth.
  (due to minimalist 2 referrals required. But you will see why it does not matter in the long-term as explained below. See Point 4. IN FACT, due to less numbers required, people might act faster in recruiting in some cases.)
• Sometimes paid on qualifying volume "cycles" depending on the growth of the 2 legs.
  (some companies' cycle payouts are fair, some may not be. See below for what "fair cycling / balancing" means. See Point 2.)
• Due to smaller initial numbers of referrals, short-term revenue is slow... but steady.
  And for some, due to "cycling", your first couple cycles may take some time to materialise.
  (if you look at it objectively, if a part-timer was involved in the previous 3 comp plans, they'd not be receiving big upfront revenue anyway... perhaps just marginally more.
  And, if the part-time downlines were not sponsoring many new distributors of their own anyway, there wouldn't be a large organisation even in a unilevel!
  So... let's not sweat the small stuff and look at the long-term residual goal that is truly available in binary plans.)
• Allows an "upline" to place a new "downline" below an existing downline, aka "spillover".
  (provides motivation, shows organisational growth & encourages teamwork.
  Up to half of new downline signups get placed under you, while it is usually much less in matrix plans where 25% or less of new signups gets placed under.
  e.g. in 4-by-something or 5-by-something matrix plans)
• Due to the smaller numbers involved, companies tend to allow unlimited levels of revenue even for the fresh starter.

Common myths of binary or dual-line plans:

1. Volumes get "washed away" / flushed
2. Balancing "problem"
3. "Not really" just 2 referrals, you need more
4. You "won't go far" with just 2
5. The "elephant leg" phenomena
6. Downlines "sit back & wait" for the revenues,
   or, since its 2, you work your butt off to find more to join you
7. Only fits "big-time" networkers who plug in their existing downline

Myths busted!!
Here's why:

1. Most companies with binaries allow unlimited (or literally unlimited) product volume accumulation.
   (some don't though, so do your research well.)
   
   No doubt, it usually accumulates on one leg but as your other leg grows in consumers, would you rather have a situation where you qualify for revenue % or cycles with volume points already banked on the other leg, or start afresh with 0 points?
   Obviously, "something" is better than nothing.
   
   --> Volumes do not get "washed away"!
   
   
2. Some companies require both legs to exactly "balance" or match in volume consumption before releasing a % or "cycle" paycheque.
   e.g. Companies that cycle based on an equal 1:1 or "1/2 - 1/2" balance, are unrealistic as not everybody can refer 2 distributors -- 1 in each leg -- at the same time. Organisation growth is naturally not 1:1.
   
   There are some companies that allow a more "natural" organisation growth & payout to take place.
   e.g. Let's assume a distributor "X" signs up into a system, and in the worst-case receives no upline assistance in growing a downline.
   X then proceeds to spend Time Period 1 promoting the products/co. to 1 new distributor & signs her up in Leg A.
   In Time Period 2, both of them promote to 1 new distributor each, and X places her new distributor in Leg B. Ratio of legs A:B is 2:1.
   In Time Period 3, X chooses to "stop at 2" while the rest continue in referring 2. What results is a leg ratio A:B of 4:2.
   From the above, it is clear that cycles based on a 33%, or 1:2 or "1/3 - 2/3" org expansion is not only fair, but also realistic.
   In fact, in Time Period 4 onwards, the org expansion ranges from 34-38%.
   Therefore, the fairest binary structure remains to be "1/3 - 2/3" (1:2 leg ratio).
   
   Just look for the Right Company.
   
   Of course, the argument that remains then would be that "not every distributor/consumer consumes the same amount of products monthly".
   To which, only a predictable compensation (with actual possible revenue figures) in a "worst-case product-consumption / distributor-recruitment case study" will be able to show that a consumer is actually able to earn -- then that will absolutely illustrate & suppress all debates.
   
   The logic here is: if one can earn in worst-case, what more if product consumption is greater than worst-case!
   
   Ask your current / potential Sponsor to show this to you in his/her comp plan.
   If they can't... Contact Us (or leave a private comment)! =)
   
   Finally, some companies incentivise default overriding commissions (i.e. weak leg % or "cycling") by rewarding distributors through "matching bonuses". Only upon sponsoring a heavy-hitting networker would one derive much revenue to "match". Usually, one would "match" individuals who are most likely just average like yourself, SO "matching bonuses" provide some form of marginal incentive. Evaluate for yourself if it blends into your business building strategies.
   
   --> No problems here with "balancing". Binary plans that pay on a 1/3 - 2/3 leg ratio are more than fair!
   
   
3. "Not really just 2" -- yes and no.
   
   Yes: If your company restricts you to a low capped revenue of e.g. 1k/week <-- Usana Health Sciences. In such a case, it isn't really just 2 referrals you need. One would have to build multiple "inside" legs & open multiple "business centres" in one's own downline. That means 2 additional referrals for each RBC opened! That's tough! You're better off joining a unilevel in this case.
   
   A resounding NO: If your company allows you to achieve your desired income target on as little as 1 distributorship / RBC -- truly 2 referrals.
   e.g. If you like to refer as little as 2 customers, stop & teach your downlines the same thing, and set a target to earn US$12k per week in 1 or 2 years time, then a company like... umm... Enliven allows you the flexibility.
   However, seriously, if you're looking to leverage on the power of just 2 referrals in a US$14k/week company... why "incapacitate" yourself if the sky's the limit?
   Therefore, you should naturally take a serious look at Synergy (20k) or why not bHIP Global (25k!!).
   
   --> Find a company with a high cap with proven infrastructure to ride on -- that truly features a compensation based on 2. Yes, they exist!
   
   
4. e.g. If a distributor hypothetically signs up and in the "worst-case" does not receive "upline" assistance in placing new distributors below him/her (like in Point 2 above)...
   and the distributor spends his first 2 months referring 2 downline distributors into the business (@ a rate of 1 distributor / month) & the situation repeats itself:
   Month 6 --> 20 downline distributors
   Month 12 --> 376
   Month 18 --> 6,764 !
   
   It is not a joke... go do your grade / primary school arithmetics.
   
   MLM skeptics will like to argue that market "saturation" will be reached sooner or later.
   
   Well, we've got news for you: 1) not everyone will be involved in building a network with a company at any one time; 2) products & systems between companies (e.g. The Body Shop at Home vs. Primerica vs. The Pampered Chef) may not be related at all & those savvy in the industry may be able to juggle 2 or more companies; 3) the human population currently stands at 6.6 billion (or 6,600 million) and is growing 6 figures daily.
   
   With a minimalist network of 2, it is real hard to hit the perceived "saturated" situation... & simply makes more sense to work with as compared to a network which requires more & more people (e.g. unilevel plans) before one gets rewarded for the work done marketing products/systems.
   
   --> You will go far with just 2!
   
   
5. The "elephant" leg:
   Usually a result of business building tactics like what some call "streamlining" (a variant of "stacking" in unilevel compensation), which is good for early organisational motivation but results in detrimental network dynamics.
   
   Now, if there exists upline assistance in the contrary from the above [Point 4] "worst case" -- where uplines place new downlines below existing distributors -- naturally one leg will start growing at a greater rate than the other "weak" leg.
   
   Perhaps you'll then need to focus your efforts in developing your downline distributors in your weak leg to speed things up, though you might not "catch up". But... so what?!
   
   --> This is only a natural characteristic that one should feel priviledged if he/she is presented a unique situation like that.
   Otherwise, patience is the key & as shown in Point 4, with the natural consumer network growth you will see the numbers and still benefit from your hard work.
   There is nothing to be discouraged about.
   
   
6. In no other compensation structure will it allow a distributor to earn handsome rewards based on a simple referral of 2 sub-distributors.
   Unilevel & matrix plans can reward on 2 distributor referrals, but will not be able to qualify a member for bonuses & revenue beyond their very restrictive levels of earnings.
   This post will explain why one doesn't "work & work" in a simple system of 2.
   
   --> With only 2 referrals required to optimise a simple dual-line system, there is no reason why distributors should "sit back" and not do the minimalist work required.
   If this is the case in your consumer network or the network you're joining, then it boils down to inadequate leadership, education & motivation.
   Simply find a team with the correct leadership!
   
   
7. --> And, as obvious as it is from the above elaborations, a dual-line compensation plan not only suits a big-time biz builder, but is also perfect for the part-time promoter / distributor / basic consumer who comes in "fresh off the boat"!
   

All in all, a binary compensation plan usually allows a new distributor to capitalise on "automatic" & selfless biz support from all directly related senior partners -- & all the way to the company's #1 distributor!

Similarly, in the near future, when assistance is requested from junior partners, it'd be totally worth a distributor's effort & time in helping out all juniors as one would be rightfully rewarded when the situation bears fruit.

--> These days many marketing groups within traditional payplan companies make it mandatory to enroll their new distributors in similar ways to promote the ever-present teamwork, however still subjecting themselves to their comp plan's restrictions, breakaway characteristics, etc.

(Leaders will also argue that there are "no losses" when distributors fall outside earning levels because infinity bonuses take care of that. The fact of the matter remains, that (1) ONLY leaders will attain the argued infinity bonuses (& only at later business stages); and (2) during the time period where network product volume falls outside of one's earning levels & until the said distributor qualifies for infinity bonuses, commissions are flushed & lost forever.)

In fact, many people building traditional payplan businesses in this fashion do not realise that they are flouting their own distributor contract policies & are liable to be terminated.

Obviously, many people are not terminated because they are earning minimal to nada in their paycheck, & yet are generating product sales volume for the company.
However, it'd be worthwhile to terminate Leaders as it would save Companies 5 to 6 figures in monthly commission payouts in their P&L figures -- and major companies HAVE been known to terminate such individuals from time to time.
Why build business silly like that & jeapordize one's efforts?
Get yourself involved with a company which will reward you to the full extent of your (& your network's) effort 100% of the time!
=)

So... which compensation makes the most sense to appeal to the widest audience of potential independent distributors -- i.e. the part-timers?

Just find the right company, with consumable products, that fulfils all the above generous characteristics!
or... contact us (or leave a private comment). ;)

** [Please refer back to this post for future updates & graphical illustrations.]

---

To end off, here is an excerpt of Jason Wells' comment from another site, on his view of compensation plans. (Jason is a leader from a dual-team payplan company.):

" I have read a lot of posts. Bottom line, if you don't sponsor or move product, you will not make money in any of the plans. That is one thing I agree with.

But when you remove the "smoke and mirrors," every plan has its limitation. I favor the binary, because its limitation is up to me. If I can't find two solid people and train them (even if they are sponsored and trained by someone else), I don't make money.

Other plans often require personal sales volume requirements that create a non-residual income situation.

My 4 top people were sponsored by someone else and I reached down and helped them since I am not paid on levels. I can go as deep as I want until I find my leader.

Other plans kill you on this because of levels and the breakaway will kill you if you are not selling a lot. That is where you hear the stories of the "garage full of products."

If you are heavy hitter and unique in your production, you will (do well) in the break away, however, if you are average like me (<-- edit: & 90% of the network marketing population!) binary... should be your choice. "

---

Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

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Something Big that's often Misunderstood...(1)

To follow on with a post from some months back... we'd herewith like to discuss in an academic & logical fashion -- arguably the most misunderstood compensation plan the industry has produced.

Well, there isn't a perfect solution to a compensation plan, really -- it will depend on the way you intend to work, how it suits your habits... & especially how it suits the network dynamics & the majority of people referred into the biz...
simply because if its not something that suits the majority (& because your performance will depend on the majority's performances) why even waste effort on it?
Makes sense?

Before we discuss its details, let's quickly talk about the pros & cons of the industry's sister plans...
--> keeping in mind that 90% of the people getting involved in network marketing are part-timers involved in 9-5 work, with little intention of going full-time into network marketing in the short-term.
--> also, keeping in mind that the point of network marketing is to leverage on the work done by the network as a whole (promoting products), thus resulting in residual income.


The Unilevel

• One can sponsor as wide a frontline as they wish (i.e. many personally-sponsored distributors on 1st level).
  Many legs. (For practicality here, any plan that requires 3 or more frontlines / legs, will be discussed as a Unilevel.)
• Good for building a large organisation in an acceptable time.
• Not practical for majority of distributors who realise the great biz opportunity the industry presents, but only have part-time to spare on their biz.
  (too much effort required to meet specified large number of personally-sponsored distributors to qualify for "executive/leadership" bonuses.)
• Incorporates variations of depth-for-width compensations.
  (e.g. you can't earn level 2, unless you personally sponsor 2; you can't earn level 3, unless you personally sponsor 3; etcetc.
  OR, you can't earn beyond level 3 if you don't attain "X" pin title; you can't earn beyond level 4 if you don't attain "Y" pin title; etcetc.)
• Cuts / breaks off revenue after certain levels.
  (e.g. only pays up to level 5, or 6, etc.)
• May include a "dynamic compression" characteristic, which essentially does not apply to the small-time distributors who simply do not have downline volume/numbers.
• May include a periodical "bonus pool", which again does not apply to small-timers.
• May include an "infinity bonus", which does not apply to small-timers.
• Very large organisational downline volume (monthly/quarterly/etc) required to qualify for bonuses/commissions.
• All product volume gets reset (flushed) at the end of the month.
• Revenue-wise, great for upfront paybacks (small sums though), but requires non-stop work to manage one's wide frontline (& each downline's wide frontlines), and to continue sponsoring new distributors to meet commission qualifications & offset for attrition.
• "Modern" methods of building Unilevel incorporate various degree of stacking or streamlining. These are basically binary payplan biz building traits which are applied negatively to unilevel biz building. Among other detrimental results, distributors are liable to get terminated! (See next post.)

--> A possible but difficult residual income plan, especially for part-timers.
It is essentially a "working plan".

The Breakaway

• aka the "stairstep breakaway" plan.
• Almost always a feature of Unilevel plans.
• Wide array of incentives / bonuses to encourage a distributor to continue building his/her organisation.
• It is literally mandatory to continue building one's organisation, especially when revenue is lost when a downline matches a particular pin title that cuts-off earnings from the relevant sub-organisation.
  (one either has to increase consumer productivity from sidelines to stay ahead of that downline's pin title,
  OR, to simply make up for lost product volume.)
• Very large organisational downline volume required to qualify for bonuses/commissions.
• All product volume gets reset (flushed) at the end of the month.
• Tendency for inventory loading (or "front loading" or "stacking" of memberships to gain pin titles / ranks.)
• Recent modifications to Breakaway plans have reduced a "total" cut-off of revenue.
  (some plans now pay back a (smaller) % of the volume that was to be originally cut-off,
  OR, rewards the distributor an "extra few levels".
  YET, distributors still feel that it is awesome to be receiving a small(er) % of breakaway volume. Question to these happy campers is: Why not receive the same (larger) % as compared to before breakaway, dopehead?!

--> A recent "invention" in compensation plans is the "hybrid plans".
Well, a unilevel is a unilevel. Once you've got to sponsor more than 2 referrals, its not a "binary" any longer. Who are these companies trying to kid?? Obviously the unsuspecting small-time distributors/consumers!
Again, a possible but difficult residual income plan, especially for part-timers.


The Forced Matrix
(not referring to the "matrix schemes" aka "elevator plans" which tend to be illegal in nature)

• Mostly requires a fixed number wide frontline (many personally-sponsored distributors), and a fixed number of levels deep .
  Keeps one's organisation within a "A x B" configuration. (e.g. 7x5, 8x4, etcetc.)
  i.e. no revenue from small-time distributors who fall outside of your "A x B" matrix.
• Great for building a seemingly large/successful organisation.
• Allows an "upline" to place a new "downline" below an existing downline (aka "spillover").
  (provides motivation, shows organisational growth & encourages teamwork.)
• Incorporates variations of depth-for-width compensations.
• Again, not practical for majority of distributors who only have part-time to spare on their biz.
  (too much effort required to meet specified number of personally-sponsored distributors to qualify for levels of compensation and/or "leadership" bonuses.)
• Moreover the forced matrix structure gives people the false urge to sit back and have the matrix organisation form on its own.
• May include an "infinity bonus", which does not apply to small-timers.
• All product volume gets reset (flushed) at the end of the month.
• Revenue-wise, moderate for upfront paybacks, but requires non-stop work to manage/manipulate the matrix to qualify for one's desired monthly paycheque.
• Basically, the deeper one goes in a matrix, the more people need to be placed sideways (on the same level) before someone gets placed below on the next level. Large MLM earnings surely take a long time to build. Good payplan for generating hundredaires.

--> Yet again, a possible but difficult residual income plan, especially for part-timers.
All in all, if a part-timer can't refer enough new distributors into their business in their part-time efforts... how in the world are they going to build up the mandatory large organisations to bring in their promised "full-time income" as illustrated above?

Also, if you're not confused by now, we are!! There are just too many hocus-pocus "bonuses" being thrown on the table just to lure ignorant bystanders into signing up.

And one major factor of the above plans that prevents a new distributor from obtaining "automatic" & selfless biz support from the seemingly "large population" of senior partners is the simple fact that most of the mid-level "senior partners" (uplines) do not qualify for "infinity" bonuses that rewards them for the selfless effort put in when time is spent helping out a junior distributor who falls outside of his/her earning levels.


<Part 2 coming up... >

---

Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

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& Be First!

A "Working Plan"

Okay... before we continue with farther elaboration of positive company characteristics to look out for...

...here's the first rant of this blog as we all proceed with our lives inside & outside network marketing throughout the Far East - Thailand, Malaysia, Singapore, Brunei, Philippines, Indonesia, Hong Kong, Vietnam (Viet Nam), Myanmar (Burma), Laos, Cambodia, etc.

Have you heard the term "working plan" used loosely & frequently (with regards to compensation plans)?

What is the definition of a "working plan"?

Simple really... one that requires one to work till he / she drops.
Essentially, that's what it means... shoot us an email if there's more to it...

Aren't we marketing our products / businesses with the hope of retiring after the fundamentals of a formidable network are built?
It simply defeats the purpose of getting involved in network marketing if one still has to "work till he drops".

Let's do some elementary school math...

Does a 2-person frontline plan make sense effort-wise as compared to a mandatory 3 or 6 or 10-person or any other width-only plan as it goes in unilevel / matrix plans?
Or, is more really the merrier?

Do not forget that in order to meet a company's commission & bonus payment requirements, an intended 6-wide or 10-wide frontline network is required...to be 6-wide or 10-wide and no less.
Otherwise, one will be penalised by the company without fail, and lose out on being fully compensated for product volume their network had generated.

Lets first discuss about each networker's first level...
...and also proceed in this discussion with the above 4 types of networks.

Right away we can see that a 2-person frontline plan comes up champs.
That's only 66% of full effort needed by you as compared to a plan requiring 3.
33% effort of a plan requiring 6.
& only 20% effort of a 10-person unilevel plan.

Let's look at the networker's second level.

Level two consists of 4, 9, 36 & 100 people respectively.
That's 44% effort,
11% effort,
& 4% of effort required by you as compared to a 3, 6 or 10-person plan.

Finally, to not make this too lengthy, lets look at the networker's third level.

Level three will consist of 8, 27, 216 & 1000 people respectively.
That's 30% effort,
4% effort,
& less than 1% effort needed by yourself as compared to a 3, 6 or 10-person unilevel plan.

By "effort", we are referring to the time, resources & energy spent in sponsoring each individual in one's network.
And the additional effort needed in supporting each individual in your downline (be it in business, product, motivation or relationships wise).

Although the numbers of one's network add up quickly in a larger width-wise network, there is no benefit / motivation for individuals in your organisation to assist one another in the larger numbers of sideline individuals' businesses or difficulties.

e.g.
In the case of a 10-person unilevel, each networker (i.e. you) has the responsibility to support each of his 10 sponsored distributors.
Each of these 10 would be primarily concerned in expanding their own network of 10 (& downwards) and have no incentive to support the other 9 sidelines which belong to his Sponsor (you).

The numbers of distributors for you to support simply pile up the deeper you get with no incentive for anybody to help anybody-else from the many sidelines that have formed in such a complex network.

This is where group cohesion comes in, with senior networkers encouraging cross-lines / side-lines to interact & support one another.
But, seriously, what is the point?

Wouldn't one be likely to assist willingly with individuals that directly matter to them??

In a 10-person unilevel, if the 100 people in level 3 need support, it is truly provided by only 11 people. (i.e. their immediate uplines & yourself)

In a simple 2-person network if there are 100 people who need support... support will be willingly (& perhaps automatically) given by 50 people (or more, depending on the network's dynamics) because of the depth of the network.

With greater support readily available for each distributor in a binary in times of need, which compensation plan better fits the seemingly derogatory term "working plan"??
You tell us.

In our opinion, a working plan where you work till you drop with much fewer opportunities to take a break, is one that promotes width.


Note: we've yet to bring in the fact that in the case of most small-width plans, additional sponsored individuals (beyond the minimum required 2 or 3) are placed below other downlines, hence proving to these downlines that their network is indeed growing.
This "spillover" serves as motivation, if nothing else.

Even in traditional companies / marketing teams which payplans do not feature such "default" business dynamics, the leaders have been attempting to "force" spillovers just to "show" business momentum. A lot of the time, this action flouts their (traditional) company's business policies & procedures, and puts their business at risk of being terminated when their commission cheques run big enough.

(This is not possible / encouraged in some plans. Which means downlines are pretty much are on their own in building a network. This leads to situations where if downlines meet obstacles in finding their own many individuals to sponsor...they'll more than likely drop out. It is a sad but true fact.)

Nonetheless spillover aside, for a comp plan to work successfully, do your part to spread the word to the minimalist 2-person (or 10. <-- haha, if you still insist on participating in such a plan.) frontline and watch the network work its dynamics.

---

Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

请联络... 听听华语讲解


>> Click Here Now <<

& Be First!