Watkins Home Based Business

Let’s take a look at MLM and network marketing compensation plans. All talk about percentages and payouts means nothing unless you have solid, legitimate products backed by a sound, reputable company. This is important to remember! Some marketing/compensation plans have monthly requirements to stay “active” in order to purchase products at a discounted price. Preferably, there should be no monthly requirements to remain active because if the products are really good, then the representatives should want to buy them for themselves (and sell them to others at retail) without the requirement to do so.

These days, most MLM/network marketing opportunities do not require you to stock products or directly pay out any bonuses to your downline group (as was once the case with Amway and others). You and all of your downline should be able to buy directly from the company and the company should pay you and all of your group’s bonuses and commissions directly. Your retail customers should be able to order directly from the company with your ID, without the need for you to have to handle product (unless you want to).

When comparing retail commissions and bonuses that are paid out, please keep a few things in mind. First, some companies like to quote their retail percentages as a mark up, while others use a discount percentage or commission. A 50% mark up is equivalent to a 33% discount. Second, many companies pay out based on a bonus value or point value (BV or PV) while others pay out based on the retail price. If a bottle of vitamins sells for $10 and has a BV of $8, a 10% bonus would be 80 cents. Another company may pay out only 8%, but on the full retail amount, so in this case, 8% of the same $10 is still 80 cents. You want to be sure you are comparing apples to apples.

Overall, many MLM and network marketing compensation plans are designed to make a few people really rich, while the average person makes little or nothing. Some are designed to allow the average person to earn a decent income, while making it harder to make the really large incomes. The best plans provide a balance between these two. After all, for anyone to get wealthy in network marketing or MLM, it takes a lot of part-timers in their group to get there. It’s very important that the new and part-time people can make some money too!

About the Author: 

Eldon Beard is a Watkins Manager with Associates All Across the USA and Canada

Watkins Home Based Business
Buy Watkins Products - Online Catalog