Network Marketing - Compensation Plans

Before choosing a network marketing business you will want to know the compensation plans. You want the right plan, one that will generate a good income in reasonable time and one that will allow you to build your network marketing organization as wide and deep as you want it to go. A good plan must be simple enough to explain to a new recruit. It must be replicable making it easy for the recruit to duplicate what you have done, thus setting up a great downline that will bring in reoccurring income not only for you, but also for them. Below we discuss different types of compensation plans.

Stairstep. This one is the oldest and is very simple. Each promotion you meet will advance you within a set structure made up of levels. Usually, the distributor works on volume, and the sponsor will receive a percentage of that volume.

Breakaway. If you don