For all the nice-nice talk about being in a multi-level marketing company for the friends you will make, the self-discovery process and all the other changes that result from getting out of your comfort zone, let's face it, the idea of making a residual income and having multiple streams of income is still one of the main selling points.  While it may be a selling point, explaining a compensation plan in simple terms is easier said that done.

Now, I consider myself pretty good with numbers.  I mean I've taken calculus, statistics, and accounting (and yes, I did pass!).  I have to admit, the first compensation plan I was explosed too left me with a headache!  It took me months before I could explain it to anyone without sounding like a complete idiot.   I thought maybe it was just that company, but I'm here to tell you, there are as many different compensation plans out there as there are multi-level marketing companies.  Direct sales has their own versions as well.

Binary, tertiary, afflilate model.  By levels, by percentage of sales, by the day of the month there is a full moon (okay, I made that last one up).  Putting yourself under yourself???  What the heck does that mean???  I ask Robin to explain it to me.  Now, you know anything that starts off with "it is really easy to understand" is probably not going to go well.  Robin has a head for complex plans.  He can figure out in his head how an entire organization should look and the most advantageous way to put people into a business to maximize the payout. So, what to do?

Well, I get to cheat.  I'm married to the master, so I just let him figure all that out.  When I'm feeling the need for an intellectual exercise, I pick up the compensation plans for one of the companies and try to figure it out.  I usually either get a headache or I fall asleep.  But what if you don't have a genius in your household?

First, rely on the leaders.  Now,  while you should start with the person that put you into the business, they may be just as clueless as you are.  Don't be afraid to ask questions and keep asking and moving up the ladder until you get the answer you want.  This is especially true if you are recruiting people early in the business.  There is nothing worse than putting your best recruit in the wrong place in your organization.

Second, get all the training you can.  Get on the phone calls, listen to the webcasts, read the materials--whatever your company offers. No matter how much time it takes, learn the compensation plan and get comfortable with it.  You should be able to explain the plan in less than five minutes and should understand it well enough to answer questions.  Again, however, if you get struck, or if you are recruiting just after you have signed up, don't be afraid to contact someone if there are questions you can't answer.  It better to tell someone you will get the answer for them than try to guess and be wrong.

Third, don't get too hung up in the details.  Don't let the fact that you don't totally understand the compensation plan stop you from recruiting and talking about the products.  There is always someone in the company that can help you with those details until you get on your feet.  (Just as a side note, if you have trouble getting help, you might want to rethink being in that company.)

To the leadership in MLM companies out there, I think good recruits are sometimes lost because their inability to grasp the compensation plan and the inability of the person recruiting them to explain it.  I know that the plans are often made to maximize the money that distributors/representatives/consultants make, but it is a mistake to assume that someone looking at your company knows about MLMs.  Remember all your literature should embody that time-honored principle--KISS--keep it simple stupid!

Well, don't forget, no matter how complicated the compensation plan, the ability to make money is there and may be there in a big way, so don't pass up the opportunity just because you may not totally get the plan right way!

Thanks for reading!