Clearing Out Common Misconceptions

Clearing Out Common Misconceptions

Let’s clear up some common misconceptions regarding compensation plans both for the distributor and the company.

The compensation plan is not important; all I need to do is recruit people

A good plan will make or break a company. Survivability among distributors is one of the main causes of attrition. Would you be as excited as when you first started if you are not making money?

Factors like payout, maintenance and even the joining fee are crucial. If a company has quite a high maintenance and their distributors are not making money, they will drop out even faster.

I will only be a serious builder once I find the best compensation plan

There are people who do not work hard enough in their business, that they blame the plan for their failure.

They blame the plan, the management, or even call them a scam. If you decide to leave a company for a better plan, make sure you leave strictly based on business reasons and not to justify your failure!

I must explain the entire plan to the prospect so that he understands

If you explain the plan to a new person, chances are he will get very confused and he might not sign up.

Keep the plan simple and explain in terms of benefits instead of features.

If you are starting your own network marketing company, outlining the benefits and writing in terms of potential earnings is more advisable because most people want don’t want to think too much.

If I want to start my own network marketing company, all I need is a good plan only.

Ultimately, the success of a network marketing company depends on many factors. The most important factor is who is managing the company. Even a company that is making the most money will still fall apart if it is not backed by a solid management team.

Other factors also include having a viable product. A good product ensures repeat sales and cash flow for both the company and the distributors. The plan should be designed to complement and synergize with all the other elements. At any time, each element should not be designed at the expense of the other.

If the company has a high payout to the distributors, everyone will join the company

If everyone in the company is enjoying extremely high commissions, you must observe the product more carefully. If a product’s mark-up is too high, it may be good for the distributors in the short term, but in the long run, high retail mark-up will hurt the consumers and devalue the product.

A product must rely on good repeat sales and reasonable mark-up at the retail level or else the company will not survive long. Most companies simply grab any product and give it a crazy mark-up so that it attracts many builders without any thought of its long term survivability.

Next up:  Recognizing Basic Plan Mechanics and Point Value to Cash Calculation

Until then, see ya soon…

Terminology and Jargon You Can’t Live Without

Terminology and Jargon You Can’t Live Without

If you expect to start a successful network marketing company or build a very large network, you had better get familiarized with the terminology or jargon!


A builder is a distributor who is actively looking for downlines. A builder is not the same as a customer who only consumes the products or recommends them to friends.


You are in their organization. An upline usually earns commission from your group volume. You may have several uplines possibly up to 10-20 levels in depth. Normally, an upline is responsible for your success. An upline may not necessarily be an upline leader/mentor. Continue reading


Dissecting Network Marketing’s Compensation System to   Maximize Profits & Even Start Your Own Company!

Okay, guys and gals, sit tight and get ready to learn!  These posts will be divided into sections and it will take a week or so to complete and by then you will have learned a whole lot of useful information.. This is going to be fun and prosperous, so stay with us till the end …………………………………….

Those Who Fail to Plan, Plan to Fail  

Welcome to Show Me The Plan – Part 1! These posts are the first part of an exciting 2 part series.

Why have these posts been created? If you are familiar with the network marketing industry, you will have no surprise why the majority of new distributors or networkers spend a lot of time in network marketing training because they simply don’t understand how the compensation or marketing plan in their company works!

Every year, network marketing companies and teams spend thousands on marketing plan training because many people simply find marketing plans today too confusing or people just don’t take network marketing serious enough to be well equipped.

Isn’t this alarming? Consider this: Continue reading

JV – Joint Ventures

It’s no secret that JVs (joint ventures) and cross promotions are one of the most productive ways to make high volumes of sales on the Internet.

Traditionally, JVs are most common between two people who have created a product and are selling it online. But that needn’t be the case and there is a way in which you can get all the benefits, traffic and sales of a JV without even having a product of your own.

What actually happens in a JV cross-promotion?

Websites promote other websites for two main reasons:

1. To earn income from commission sales.
2. To pay, or earn, favors.

The first of these you might expect, the second is more intricate.

You see, when you’re running an online business, your options and your growth are restricted if you try doing it all on your own. Sure, there’s pay-per-click advertising, article marketing, traffic exchangers, and a variety of ways you can draw traffic to your site by paying for it.

But nothing beats personal recommendation.

Its human nature: We all prefer to buy through personal recommendation than by enticing advertisements.

And JV’s or cross-promotions are all about personal recommendation.

The only thing is – as every super-affiliate knows – even if you’re offering attractive commission rates; the site that’s getting promoted always gets more out of the deal than the JV partner who’s doing the promoting. Look at this comparison:

The JV partner doing the promotion gets:

1. A ‘notional’ favor from the site it promotes.
2. Commission payments, hopefully paid in good time but always at the discretion of the site owner.

The site being promoted gets:

1. Lots of new list members
2. Lots of Sales
3. Lots of recognition

Which would you rather?

Can you see now why the benefit isn’t split evenly in a JV deal?

This is one of the reasons why it is more difficult than many people think to get JV partners promoting for you.

No matter how attractive your commission percentages are, you will always be getting more out of the deal than your JV partner. Especially if your landing page is a list-building squeeze page.

Talk at ya soon…

Web 2.0 Viral Marketing

One of the newest yet oldest form of viral marketing is the usage of E-mail and Web 2.0 sites.

Remember the video called ‘Numa Numa’ who had this guy lip-syncing to a song… it was one of the MOST VIRAL VIDEOS of all time.

The owner of the site had TONS of traffic flooding into his site everyday and people everywhere WANT to imitate him and do their own parodies of the ‘Numa Numa Dance’ as well.

Another good example is the ‘Diet Coke & Mentos’ scenario. Continue reading