Multi level marketing, or MLM, is a great way to earn money. The secret to earning money successfully through MLM is to be a great internet marketer or have a wonderful social network structure in place. For this you will need a perfect reputation of having the ability to earn money online and help your down line earn some too. However, before jumping on to the MLM band wagon and if you are not too familiar with the techniques of MLM you must understand the various MLM compensation plans. We will try to explain them in brief in this article.
The main MLM compensation plans are:
Matrix plan, percentage plan, infinity bonus plan, uni-level or forced matrix plan, binary plan, and two-up plan. Let us understand the most popular i.e the first three in a bit more detail.
A matrix plan means that you sign up someone on your next tier and each of those people sign up people on their next tier and this system continues. The resulting people under you constitute your down line and you earn from the sale of every member in your tree. This matrix continues to grow every time someone signs up in your down line.
The percentage system assures you of greater profits from each level. Suppose you had 3 people in your first level and they each signed up 3 people under them you will have 9 people in your second level. If these 9 people signed up 3 people each of you will have 27 people in your third level. You have a total of 39 people in your tree and if you get 10 percent commissions from sales from level three and 5 percent from levels 2 and 3 it will be more lucrative than getting a consolidated 7 percent from all 39 people.
In the infinite bonus plan once a marketer reaches a certain level of earning he breaks away and forms his own group. This means that earnings for the up line are significantly reduced but it does help the continuity of the program by ensuring the feasibility of the economics of the MLM.
The compensation plan of any MLM program is very important to the success of any MLM campaign. First and foremost, if you find that the MLM management is keeping a greater profit margin for themselves, no matter what their excuse you can be rest assured that they are convinced that the MLM is not going to last very long. This is the reason they are collecting as much profit as they possibly can while the going is good.
A well planned and managed MLM program will distribute greater profits among it’s affiliates and keep a minimum for itself. Keeping in mind that the program is earning from each and every sale in the down line, they will earn much more than any single affiliate anyway.
If Paul Zane Pilzer, economic advisor to two US presidents, is to be believed then the health and wellness industry is going to be the next trillion dollar industry. Presently the food and beverages industry occupies that position and is undoubtedly creating a market of ill and overweight Americans for the wellness industry to capitalize on. This is no doubt going to be the opportunity of the century with many MLM entrepreneurs just waiting in the aisles to jump on to the band wagon as it passes by.
Where there is an opportunity to make great profits from any business can the masters of MLM be far behind? In fact, they are already waiting in the shadows keeping an eagle eye on developments in the health and wellness industry. One great product and it will hit the market through so many MLM channels that most of the competition of the health and wellness industry will be taken unawares. MLM can play and in fact, already is playing an important part in pushing health and wellness products in the market. There are many MLM leaders with their teams ready to begin marketing wellness products through their internet MLM programs and even in the physical markets so much so that before we know what is happening many of the products will be held in millions of hands and all within a matter of a few days.
If you are not new to the internet and email you will already be familiar with MLM and health and wellness. I for one have been inundated with health products through email and even post cards relating to health products from Viagra to body cleansing. MLM participants are selling all sorts of health and wellness products through email and online marketing. There are affiliate programs that cannot be counted by numbers alone, we will need an algebraic expression to determine the number of these MLM programs promoting health and wellness products on the internet. However, this form of selling health and wellness products is fast gaining momentum.
One would wonder, by observing the change in marketing products, if the fast food industry is partnering the health and wellness industry of late. In lighter vein, I would give in to my imagination that after the junk food industry has fattened up the goose, they are now turning to products that would help slim it down a bit – perhaps to begin the whole fattening cycle again.
Nevertheless, the MLM marketing technique is the most sought after technique to sell non-prescription medications and supplements as this is a way of circulating the products fast and effectively and very economically too.