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Analyzing Your
Compensation Plan
  Have You Been Paid Yet?


           Presented by: Frank Andres
           Founder of StopStrugglingToday.Com
In Networking Marking
there are many different types of
      compensation plans
Some are very straight forward
       while others
          (most)
     are clear as mud
Since your “Comp plan”
      is the major factor in
determining your profit potential,
             it is VITAL
           to make sure
      it’s in your FAVOR!!!
There are 4 key questions to ask
   when analyzing any MLM
      compensation plan
Each question brings you closer
     to understanding the
        profit potential
   plus what you have to do
  to make money using that
      compensation plan
Question #1
How many people do I need
in my organization to make
     10K per month?
The reason this question is VITAL.
 It answers the question of how
              “hard”
you will have to work in order to
     reach your financial goals
Employers that pay the most money
   are the most sought after!

  Shouldn’t it be the same with
       MLM Companies ?
It makes sense that you would want
      the comp plan that pays
          the most money
    for the least amount of work
When put to the test
 MLM comp plans vary drastically!

To achieve a monthly income of 10K
the industry average is about 2,800
I have found plans
  that range from
    (high) 28,000
          to
      (low) 100
The Best Comp Plan Is:

The one that produces the highest
 income with the least amount of
             people

      Don’t be fooled into
     believing differently!!!
Question #2
 What will I get paid if I bring
       $500 in revenue
into my business each month?
In a traditional sales job
          commissions
for revenues generated earn
  20 percent to 50 percent
In some network marketing
        comp plans
you can go into the negative
For example, I have friends that
were with Excel Communications, it
cost them $100 dollars per month to
      produce $500 in revenues
I only mention this because some
     companies still use that
         business model
In most MLM comp plans,
$500 in revenue will result in ZERO
          commissions!!!
In a few, you might earn 4 - 8
     percent commission

    How much did you
     earn last month?
In companies that are more
streamlined and modern, it is
   possible to $50 to $250
Aren’t these the companies we
  should be looking at when
    considering an MLM?
How Much Are You Really Earning?
How long do you think a new
distributor will stick with you, if
     they’re losing money?

If people are not paid, then they
           won’t stay!

    They can’t AFFORD to!!!
Question # 3
  To have my products paid for,
how many customers will I need?
It all comes down to retention.
If your new recruit can’t
     break even quickly
then they won’t be around
          very long
Most people enter this industry
  “with the urgent need”
 to earn additional income.
If your companies
     comp plan doesn’t provide
  a “quick break even possibility”
then they will simply quite because
        they can’t afford it.
A Total Fail would be any company
    that requires 20 customers
A company with below average
    scores will require ten
A good Company should only
    require a maximum
       of 4 Customers
to pay for monthly auto ship
I calculated the numbers from a
   handful of the Top Network
  Marketing Opportunities and
   what I found shocked me!

These Top MLM companies took
   between 8 to 12 persons
        to break even
WOW… how much of your business
volume is going to just paying for
        your products?
Question # 4
Are there loops, hoops and other
     traps are built into the
           Comp Plan?
So your plan passes the first 3
criteria! Yeah, show me the money!
    Not so fast, make sure to read
   everything you can about your
           chosen company
Read the fine print as well as the
       charts and graphs
The fine print will reveal what you
  have to do to earn anything

 Look out for Hoops and Traps
designed into many comp plans
Ask questions of your sponsor and
keep asking until you have answers
  that are understandable to you
This is, after all, your future.




     StopStugglingToday.Com

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Analyzing your compensation plan

  • 1. Analyzing Your Compensation Plan Have You Been Paid Yet? Presented by: Frank Andres Founder of StopStrugglingToday.Com
  • 2. In Networking Marking there are many different types of compensation plans
  • 3. Some are very straight forward while others (most) are clear as mud
  • 4. Since your “Comp plan” is the major factor in determining your profit potential, it is VITAL to make sure it’s in your FAVOR!!!
  • 5. There are 4 key questions to ask when analyzing any MLM compensation plan
  • 6. Each question brings you closer to understanding the profit potential plus what you have to do to make money using that compensation plan
  • 7. Question #1 How many people do I need in my organization to make 10K per month?
  • 8. The reason this question is VITAL. It answers the question of how “hard” you will have to work in order to reach your financial goals
  • 9. Employers that pay the most money are the most sought after! Shouldn’t it be the same with MLM Companies ?
  • 10. It makes sense that you would want the comp plan that pays the most money for the least amount of work
  • 11. When put to the test MLM comp plans vary drastically! To achieve a monthly income of 10K the industry average is about 2,800
  • 12. I have found plans that range from (high) 28,000 to (low) 100
  • 13. The Best Comp Plan Is: The one that produces the highest income with the least amount of people Don’t be fooled into believing differently!!!
  • 14. Question #2 What will I get paid if I bring $500 in revenue into my business each month?
  • 15. In a traditional sales job commissions for revenues generated earn 20 percent to 50 percent
  • 16. In some network marketing comp plans you can go into the negative
  • 17. For example, I have friends that were with Excel Communications, it cost them $100 dollars per month to produce $500 in revenues
  • 18. I only mention this because some companies still use that business model
  • 19. In most MLM comp plans, $500 in revenue will result in ZERO commissions!!!
  • 20. In a few, you might earn 4 - 8 percent commission How much did you earn last month?
  • 21. In companies that are more streamlined and modern, it is possible to $50 to $250
  • 22. Aren’t these the companies we should be looking at when considering an MLM?
  • 23. How Much Are You Really Earning?
  • 24. How long do you think a new distributor will stick with you, if they’re losing money? If people are not paid, then they won’t stay! They can’t AFFORD to!!!
  • 25. Question # 3 To have my products paid for, how many customers will I need?
  • 26. It all comes down to retention.
  • 27. If your new recruit can’t break even quickly then they won’t be around very long
  • 28. Most people enter this industry “with the urgent need” to earn additional income.
  • 29. If your companies comp plan doesn’t provide a “quick break even possibility” then they will simply quite because they can’t afford it.
  • 30. A Total Fail would be any company that requires 20 customers
  • 31. A company with below average scores will require ten
  • 32. A good Company should only require a maximum of 4 Customers to pay for monthly auto ship
  • 33. I calculated the numbers from a handful of the Top Network Marketing Opportunities and what I found shocked me! These Top MLM companies took between 8 to 12 persons to break even
  • 34. WOW… how much of your business volume is going to just paying for your products?
  • 35. Question # 4 Are there loops, hoops and other traps are built into the Comp Plan?
  • 36. So your plan passes the first 3 criteria! Yeah, show me the money! Not so fast, make sure to read everything you can about your chosen company
  • 37. Read the fine print as well as the charts and graphs
  • 38. The fine print will reveal what you have to do to earn anything Look out for Hoops and Traps designed into many comp plans
  • 39. Ask questions of your sponsor and keep asking until you have answers that are understandable to you
  • 40. This is, after all, your future. StopStugglingToday.Com