Best MLM Compensation Plans: Introduction
Are you interested in learning about the multi-level marketing business opportunity?
Is this a scam or a legit business opportunity?
In this article, we’re going to review and decide what really is the best MLM out there.
We’ll talk about which MLM is the right online business for you.
In the end, I’ll answer some of the most frequently asked questions regarding MLM and its compensation plans in general.
Now, I want to be completely honest here, so…
DISCLAIMER:
This Best MLM Conpensation Plans review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn by myself are opinions.
Chances are you heard about MLM programs because someone – a friend or family member – introduced you to the company. Maybe you attended an online workshop or webinar, or maybe an in-person information session.
Your head’s probably spinning. This might be the first time you’ve heard about a real way to make money outside of a typical job.
So first off, congratulations!
You’ve just entered a whole new world…the world of making money on your own terms.
However, you came in through the wrong door.
Because the best MLM compensation plan is still – plain and simple – an MLM. Throw whatever fancy name you want on it…multi-level marketing (MLM), network marketing (NWM), direct sales, or anything else, it’s the same concept:
You pay some money upfront for the “opportunity” to sell products.
The products are typically low-quality but with high price tags (because fancy labels and stuff).
You’re told that the key to building your own successful business is selling these products to friends and family, and getting them on a subscription (so you get “monthly recurring revenue”).
Unfortunately, like most people who get taken in by these types of schemes, you’ll quickly discover that the well runs dry faster than you imagined.
After all, they make it sound really simple. “Just get 5 people you know onto this magic widget, and things will just grow from there.”
And in your head, you think “How hard can it be? I know plenty of people, 5 will be easy.”
But then you do it, and you realize people look at you like you’ve joined a cult. You’ve become “that person”, who joined an MLM, and is now trying to sell questionable products or services to everyone they meet.
It puts a strain on your relationships, and you end up stuck between two worlds.
But it’s not your fault. These companies spend millions of dollars each year figuring out exactly how to brainwash and recruit people. And that’s why we’re here.
To help you find a better way before it’s too late.
So, what if there was a way you could build a passive income stream that’s actually passive?
An income stream that doesn’t require:
- Inventory
- Selling to friends and family
- Selling to strangers
- Recruiting people
- Dealing with questionable products that weigh on your conscience
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000)?
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day chasing, selling, or managing anything?
If that sounds like something you’d be interested in, check out Digital Leasing.
This is nothing like MLM, and that’s probably a good thing.
However, if you’d still like to know more about MLMs, keep reading.
MLM Review: What Is An MLM?
Is this another of those network marketing industry tactics that entice consumers to join, purchase a product kit, then recruit their family and friends to do the same?
The truth is that while most MLMs teach people how to succeed as network marketers, the reality is that the majority of members earn very little money promoting their products.
To be honest, can you become wealthy earning a pitiful commission on things that are available cheaper on Amazon?
If you want to really earn much money online, check out our #1 recommendation here.
But to give you a fair and honest review….
Some MLMs do provide helpful ways for people to make money online and get commissions.
In the end, I will answer some FAQs about the network marketing industry as a whole.
And most importantly, I’ll show you the exact system I used to build my own internet marketing business to over $40,000 a month in mostly passive income.
This system made me swear off Network Marketing for good, because it uses some of the same skills but in a much more powerful and profitable way!
MLM Review: Are MLMs A Scam?
So, are MLMs a scam?
Not technically. You can make money with these programs, but it’s definitely not as easy as the company makes it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual commissions are pretty small.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months and then your reward is a $50 commission, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Leasing.
And, unlike an MLM, you can legitimately do this from anywhere. It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Leasing.
Multi-Level Marketing Review: How Do MLMs Work?
Thus, how do MLMs generate revenue?
In its simplest form, multi-level marketing is a business strategy that corporations utilize to distribute their products to consumers via sales representatives.
These sales representatives typically operate from home and purchase the inventory they sell. The multi-level component concerns their ability to recruit and train their downline members. When recruits generate sales volume and recruit below them, they get a commission for each person above them.
Earned revenue is derived from commissions on personal sales volume and a part of the sales generated by salespeople you recruit.
MLM Companies: What Are The Top 5 Companies In 2021?
The following are the top ten multilevel marketing companies in terms of income earned:
Who Is The Number 1 MLM Company?
Amway has been the world’s largest multi-level marketing company for many years.
Amway was launched in 1959 and has since developed a variety of items that consumers have grown to enjoy – household cleaners, laundry detergents, weight reduction shakes, and beauty care products, to name a few!
Compensation Plan: What Are The Various Types?
Before I describe the best MLM compensation plan, allow me to demonstrate the many sorts. The first four payment plan types are the most prevalent:
- Breakaway
- Unilevel
- Matrix
- Binary
Stairstep Breakaway MLM Plan
What do MLM companies do when their primary objective is to increase distributors’ sales efficiently?
They employ the Stairstep Breakaway Technique. When an affiliate reaches the top rank, he and his team “break out” and are immediately added to the admin as a new tree.
Unilevel MLM Plan
The Unilevel compensation model utilizes a single company level in which all sponsored affiliates are automatically placed. All recruiting efforts made by a distributor benefit him directly, as there is no spillover. The Unilevel Plan is sometimes referred to as the “universal plan” because to its prevalence in all compensation plans.
Matrix MLM Plan
This is one-of-a-kind. The Matrix Plan is defined by a fixed depth and width, with the first two affiliates located on level one (front line). The rest of the affiliates are added to the tree’s next available slot (spillover). MLM companies rely on the Matrix model to increase group sales volume.
Binary Compensation Plan
A binary compensation plan are structured so that each affiliate has two legs (right and left) or subtrees. A binary tree is generated when subtrees are added. Later on, as fresh recruits join, they flow into the downlines or, even better, the next company level — and so on to an infinite number of layers. The Binary compensation plan is easy to understand, which aids in recruiting more candidates.
Home Party Plan
This strategy improves product marketing by inviting people to a room (often a comfortable one) and selling the products after a suitable introduction and presentation.
Board Plan
This is a well-known one.
A “board” is a new tree generated for members who meet particular standards. Relying on the company’s guidelines, a compensation plan may include various boards. This strategy is also known as the recycling matrix strategy.
Generation Plan
Consider the Generation Plan to earn an excellent retail income and commissions from downline efforts. This plan is constructed similarly to a Unilevel Plan, except it includes multiple generation levels with affiliates and acquired customers. This strategy seems to be ideal for e-commerce enterprises.
Monoline MLM Plan
Additionally referred to as the “Linear Plan” or “Single Leg Plan,” the Monoline Plan is easy to comprehend. It features a one-line structure with an infinite number of layers. Due to its simplicity, it is popular and a standard choice for most enterprises.
Best MLM Compensation Plans: What Factors Make For The BEST Plan?
Question: Which MLM Compensation Plan is the best?
The truth is that there is no such thing as an ideal MLM Compensation Plan. Each has its own set of advantages and disadvantages. Do you believe Avon’s Mary Kay compensation scheme will work? Or the Avon-Amway partnership? Certainly NOT!
Why?
The answer is all about FIT. Is the plan compatible with the organization’s culture and system — direct selling company, pricing, field training/culture, and leadership development, for example?
Each multi-level marketing organization approaches direct selling companies differently. While Avon, Nu Skin, and Mary Kay all market beauty products, they are also quite distinct in various ways.
Thus, MLM organizations that are the BEST and PERFECT FIT select one of the core compensation plan types use it to build stable revenue, and then utilize and align additional plan types for expansion. With that in mind, I’ll examine the characteristics of an effective compensation plan.
MLM Compensation Plan: Building Blocks For The Best Plan
1. Customer-Sales Focus
MLMs must concentrate on retail sales to clients who are MLM affiliates. Why? To mitigate the risk of Federal Trade Commission inspection and enforcement (FTC). Excellent MLM compensation plans place a premium on this.
2. Customer Commission Or Profit
Affiliates are motivated by early benefits. When they enlist a customer, they must receive a commission on any orders placed – often between 20% and 25%. However, businesses that offer bigger percentages for higher volumes have seen better outcomes.
3. Ranks And Recognition
This is a wonderfully inspirational statement. Along with commissions, a substantial pay plan should provide rankings and recognition. When affiliates advance through the levels, they should receive a title commensurate with their rank, as well as higher remuneration.
4. Rank Advancement Bonuses
The best multilevel marketing compensation plans provide an upfront fixed incentive when an affiliate advances in rank toward a clearly defined career path. What a boost this bonus provides for dedicated members. Advancement is synonymous with growth!
5. Strategic Compression
When an upline affiliate is compensated as though ineligible or inactive members were not present in the tree, this is referred to as strategic compression. This way, diligent associates are rewarded regardless of the idleness of others.
6. Activity Requirements
If businesses wish to improve sales, they should impose activity requirements to incentivize certain behaviors. The objective is to boost sales, enhance corporate profitability, and retain affiliates.
7. Fast Start
The finest multilevel marketing compensation programs get off to a good start. Companies have noticed significant benefits from compensating new workers in affiliate retention.
8. Career Path
A strong MLM pay plan is built around an affiliate’s career path. Assuring future companions with the business drives them to work hard, extend themselves to achieve greater heights, and stay with the organization. This path dictates how affiliates sell, recruit, lead, and build their team.
9. Mentoring And Team Building
The development and mentoring of a strong team must be rewarded. Because the MLM company as a whole is dependent on the existence of each member, affiliates must be recognized for their contributions to team building.
10. Leadership Rewards
Leaders of businesses wield considerable influence. As such, they must be adequately compensated for coaching, mentoring, and building their downline.
11. Recruiting Rewards
In addition to rewards for sales volume, recruitment initiatives should be rewarded. However, recruitment should not be the primary objective of MLMs due to compliance constraints. Nonetheless, these perks can serve as the icing on the cake.
How Do I Create An MLM Compensation Plan?
I’ll outline seven strategies for developing an effective pay plan for your business:
1. Understand Your Company’s Objectives
Before anything else, investigate the following critical areas of your business:
- Type of product
- Offers a product or service
- Corporate objectives
- Ratio of cost to consumer
- Facilitation of sales
- Experience as a distributor
- There is space for incentives, etc.
2. Do Your Research
Before accessing the terrain, conduct a thorough examination. Consider watching instructional videos on compensation plan. Alternatively, read extensively on pertinent issues. These will get you started.
3. Know Your Numbers
Before you begin compensating your affiliates, familiarize yourself with the math. Understand your cost of products, distributor price, and retail sales price, among other things. By improving your understanding, you will be better prepared to answer inquiries.
4. Choose An MLM Compensation Plan
Following that, you can choose from the numerous typical compensation plans outlined previously.
5. Hire An MLM Marketing Agency
Are you feeling quite overwhelmed? Do not be concerned. You can employ an MLM marketing agency to assist you in establishing your objectives, navigating through obstacles, and setting reasonable expectations. They will assist you in determining the most advantageous compensation arrangements.
6. Consider An Incentive Program
At times, an additional boost for your sales team is necessary. Why not try adding a bonus or participating in a profit-sharing program? Taking good care of your employees is critical to your success.
7. Be Ready To Make Changes
You are certain to make errors – regardless of your research and preparation. Always take time at the end of the year to reflect. Reexamine your plan and make required adjustments. Are you on track with your budget? Is your team energized?
Stick To What Works
In a nutshell, keep things simple. Yes, you can be distinctive, but avoid deviating too far from the norm. Profit from the mistakes of other multilevel marketing companies. It pays to be prudent and to utilize the best mlm compensation plans available.
What Is The Highest Paying MLM Company?
AMWAY is the highest-paying multi-level marketing organization at the moment.
Why is this the case?
Consider the following benefits they provide to affiliates:
Amway Benefits For Associates:
- Purchase discounted products at wholesale prices.
- Take Part in a Loyalty Program (loyalty points can be redeemed as products)
- Amass points through purchasing
Amway Commissions And Bonuses:
- Commission: 3%
- Retail profit margin: 15% of sales
- Profits from retail sales plus commission
Which MLM Has The Best Compensation Plan?
I will recommend NOT ONE but FIVE multilevel marketing companies that offer the best mlm compensation plan. They are as follows:
1. ARIIX
Products: Brands associated with lifestyles (Nutrifii, Puritii, and Nucerity)
Ariix utilizes the industry’s first multiline compensation model, named Activ8. In contrast to matrix layouts, this provides an unlimited width and depth. Additionally, you receive a 50% payout — the highest commission structure available at the moment.
Finally, they employ an algorithm that calculates cost-of-living increases to ensure that you receive appropriate support over time. Additionally, Activ8 enables members to enroll under one affiliation and a different team.
This encourages cross-functional cooperation and team building. Isn’t it cool?
Indeed, Activ8 is one of the top multilevel marketing compensation systems available today.
2. LifeVantage
Biohacking goods (fitness, nutrition, beauty)
There are two methods to join an MLM compensation plan –
- Preferred Customers – bulk purchases
- Distributor – earn commissions on sales and referrals
Initially, the wage structure may appear confusing. However, if you sell well and are committed to the long haul, you succeed.
You can make money in the following ways:
- Smart start bonus
- Retail sales
- Launch bonus
- Generational matching bonus
- Royalty commission
- Rank achievement bonus
- Elite bonus pool
- Business center
3. Total Life Changes
Products: Products for the home (beauty, skincare, hygiene, essential oils)
MLM Compensation Plan: Once you join as a representative, you can immediately begin earning commissions on products sold. They employ a mixed binary strategy. You can earn money in the following ways:
Profits and ommissions from retail
- Bonus for a Quick Start
- Binary compensation
- Bonus on top of the bonus
- Bonus for a healthy lifestyle
4. Thrive
Products: Weightloss lifestyle products
MLM Compensation Plan: As a brand promoter, you earn a 20% commission on client orders. Additionally, you receive complimentary products when consumers enroll in the auto-ship program. You earn up to 8% on every level of your placement tree when you take the unilevel option. And, to top it all off, financial bonuses toward luxury cars and trips are available.
5. DoTerra
Lifestyle items (renowned line of essential oils)
MLM Compensation Plan: There are three ways to earn money in this business:
- Profitability in retail
- Bonus for quick start
- Three-fold additional power
DoTerra is not simply financially rewarding. Additionally, they are the world’s fastest-growing MLM!
Which Is The Fastest Growing MLM Company In The World?
Since its inception in 2008, DoTERRA has spread like wildfire. Within seven months, it had surpassed the $1 million mark! In 2012, doTerra achieved $1 million in sales days, and by 2015, it had reached $1 billion in sales income!
However, it does not end there. DoTerra has expanded to over 3 million “Wellness Advocates” affiliates, and by the end of 2016, they had collected 30,000+ affiliates in a convention!
Can You Really Make Money With MLMs?
You certainly can!
But…
There’s a lot that comes along with Network Marketing (MLM) that many people struggle with.
In fact, check out our Top 5 Reason Why Most Network Marketers Fail.
Now, don’t get me wrong…
You can certainly make money with MLM, but if you’re gonna put in the amount of grueling work to do this business (which, trust me, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
The program that helped skyrocket my online business to over $40,000+ per month is so simple that making money really does become second nature.
Bottom Line: Is Joining MLMs Worth It?
Is it worthwhile to join multi-level marketing with solid compensation plans, like those described previously? As can be shown, not all MLMs are fraudulent. They sell legitimate products and correctly compensate affiliates.
And the companies I mentioned DO PAY LARGE AMOUNTS OF MONEY.
I wouldn’t hesitate to recommend them to a friend, especially serious about earning a solid living through the MLM framework.
However, are these the most profitable mlm business opportunities for YOU?
I wish nothing but the best for YOU. My objective is to assist you in achieving financial stability.
When it comes to building a business, you have plenty of options.
And even if you’re dead set on becoming an MLM marketer, you’ve got way better options.
Keep in mind, I don’t get paid to promote any of the programs I review. I think the MLM companies I mentioned have a great business model, but you could end up leaving way too much money on the table.
What Other MLM Companies Can I Join?
There are plenty of MLM companies to choose from if you want to pursue this business model. Here are just a few:
What Is Our Top Recommendation For Making Money Online In 2024?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Digital Leasing is the #1 online business model for those just starting out.
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Leasing is for you.
Why?
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Leasing business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
2) You Own & Control EVERYTHING: With MLMs and Network Marketing, you don’t really own anything. You have no control over the quality of products. You don’t even own your “team”.
Look at the fine print for most of the agreements folks sign when they join one of these companies. At any point, the company can change your commission structure, reduce your profit margins, or kick you out entirely.
With Digital Leasing, you own the assets, which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Leasing with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) No Inventory: Alright, so most MLMs don’t make you buy the products and fill your garage with them anymore (unlike the good ol’ days), but you’re still in a physical products business.
And physical products always have physical limitations. Even if you don’t have to manage the inventory, you still have to deal with supply chain shortages that cause major delays.
Imagine finally landing your first customer, and then losing them after one sale because they had to wait 6 weeks to get their order.
With Digital Leasing, a 100% online business, you never even have to think about that risk.
5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with an MLM, you’d have to double your customers OR double the average order size of your existing customers. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
6) Make Money Helping Real People: This part is what makes it all worth it. In an MLM, your “upline” might convince you that what you’re selling improves people’s lives, but deep down, you likely know that’s not true.
Most of the time, you’re either selling a dream or a poor-quality, overpriced product with a fancy label.
And that makes it pretty hard to sleep at night.
But with Digital Leasing, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Leasing, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Leasing makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours.
You could continue browsing, looking at the best mlm compensation plans which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Leasing.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Leasing.
