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Referral and Marketing Tools Article:
"An Overview of MLM Compensation Plans Posted By : Michael Noto"

Over time businesses change their structure and guidelines. The MLM or Network Marketing industry is no different. Being that these companies are mostly sales companies the changes over time have come in form of dynamic compensation plans. Some of these plans have been revolutionary and some a downright bad idea. A compensation plan is obviously one of the main factors one will evaluate when choosing which Network Marketing business opportunity is best for them. Here are a couple of the most popular plans explained in detail.

1. Stairstep Breakaway Plans: This is the oldest and most popular type of MLM comp plan. The name is derived from the fact once a rep makes a certain amount of sales they then start their own organization thus they “break-aw


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ay” from their manager in the process. The difference in titles and advancement up the ranks revolves around sales numbers and the amount of people in your organization, for every goal you hit the larger percentage commissions you as a manager of your organization receives. Some popular MLM companies that have this structure are Amway and Tupperware.

 

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