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The Three Proven MLM Compensation Plans Part 1: Overview


“What is the world’s best MLM compensation plan?” you ask. If you’re like most people in the MLM business, you just want to know what network marketing compensation plan works the best. The fact is that over the last 20 years, there have been three predominant compensation plan types implemented by select network marketing companies to achieve landslide success:

  • Breakaway
  • Hybrid Uni-level
  • Binary



Each of these plans has been magnificently successful! Each one can work and can be a good choice. Herbalife, NuSkin, XanGo, Tahitian Noni, Meleleuca, Isagenix, and Synergy are all living color examples. The thing to remember is whichever plan you choose—Breakaway, Hybrid Uni-level, or Binary—each has its own specific, unique set of challenges.

While all three of these plans are good choices, I cannot emphasize enough that the type of compensation plan your company chooses is of the utmost significance! When you create your own MLM business, one of your most essential priorities and responsibilities is to design a compensation plan that fits your company’s unique needs and offers a mix of elements that will take your company to the top. For example, the business model your company chooses, i.e., Party Plan, must be considered in choosing the type of compensation plan you use because it has a profound effect on every aspect of business operation.

Sometimes MLM network marketing companies tend to overlook the strengths and weaknesses of a compensation plan when moving toward their dream. Swept away by all the excitement, they don’t step back to evaluate why some plans work and others don’t. It’s essential to do your homework and study the compensation plan possibilities in depth to determine which plan best meets your company’s needs and offers the greatest potential for success.

Actually, what’s probably even more important than which compensation plan you choose for your company, is once you’ve chosen your path, committing to it 100% and staying with it, period. This should typically be an irreversible decision, otherwise the consequences can be catastrophic. For example, if you start out with a Binary Compensation Plan and then switch to a Uni-level, by in large, the things you’re doing to make a Binary work are so different than those you have to do to make a Uni-level work, you take all the value out of your distributors’ blood, sweat and tears. It is a very difficult thing to transition from one compensation plan type to another!

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Professor Charles
Professor Charles is a content marketing professional at Teclutions, an inbound marketing and sales platform that helps companies attract visitors, convert leads, and close customers. Previously, Professor Charles worked as a project/marketing manager for an online tech and advertising startup. He graduated with honors from Coventry University United Kingdom with a Bachelor's degree in Multimedia Computing.

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