There is so little information floating around on the internet these days on the comparison of network marketing pay plans. Companies and distributors always play the high points of their plans against the competition without helping the prospect (potential new recruit) really understand what are the benefits of each plan.
Our focus here is to highlight one such plan which may help you in your research for the best network marketing plan in the direct selling industry. Please do not think you must stop reading now if you do not like a binary plan. The next few paragraphs are important to anyone in the industry.
A network marketer’s success depends on two important factors. One if how much you get compensated by the plan you are in. The second is how much you can take advantage of the plan and make the most money from it. By this we mean that with proper structure in your business you can build a very strong organisation which in turn will compensate you handsomely.
Every network marketer wants to earn the most income for his or her efforts. Be cautious about plans that pay too little as there are ones out there that pay more. With that said I would like to point out that plans that pay more than the industry average must be looked at closely as they may go out of business soon with over paying. Remember that the company has to make a decent profit to stay viable. Companies can only pay a certain amount out to their distributors. If they choose to pay more then this amount will come out from the profits of the company and or the quality of the raw ingredients of the product being sold. A poor quality product will not stay on the market for too long.
There are a number of different pay plans that are present in the direct sales industry. In the last 60 odd years we have seen compensation plans come and go and a few have been very successful. Some of these plans may seem on the surface to be the same yet they all differ as you dig deeper into the plan structure. Companies such as Amway and Herbalife have been around for years and their plans have withstood the test of time. More recent companies such as Usana Health Sciences use a more modern day approach to the direct selling industry and have been making a lot of head way towards being recognised as a leader in the direct selling arena.
One such plan is the binary plan now being used a lot in the last 16 years in the industry. Binary means two and so all you need to do is to introduce the products to two people and you are in business. It is very much like a human cell dividing into 2 and then 4 and then 8 and so on. In matter of months or a few years the organisation of distributors and customers can far exceed many thousands.
Most binary plans have their volumes capped at a certain figure so that the compensation does not eat into the company profits. This allows the company to distribute commission more evenly down the ranks and more to share for the lower levels. Look for a binary plan that offers their distributor at least 38 to 42% payouts as this is the industry average that most sales companies use to pay their distributors in other conventional fields.
Please don’t fall for the old saying that “my plan pays the highest” as this will normally come at a price.
Claude Fullinfaw and his wife Vicki Parker have been in multilevel marketing or better known as network marketing for over 6 years now with a cummulative experience of over 15 years in the industry.
SEM or Search Engine Marketing includes: Paid inclusion in a directory where you can pay to have your business added to a search engine’s directory. It is useful if you want to make changes to your content frequently because your site will be indexed more often by the search engines. You can also see how the changes that you make will affect your ranking.
Traditional Ads involve placing your ad on search engine result pages. (SERPs). You pay by impression – this means that whether or not someone clicks through to your site, you are paying for the ad. For example, a banner ad is considered a traditional ad.
Pay Per Clicks are text only ads. Paid keyword searches are a set of search engine results that relate to the specified searched words. The paid keywords show up depending on how many other competitors are paying for the exact same keywords. Advantages of PPC campaigns: you control the budget, set the maximum that you will pay per click, and pay only when someone clicks on your ad. Disadvantages include: Your competitors can click on your ad, the more competitors you have for the keyword you’re advertising The more competitors you have, the more it will cost for you to achieve the top position. It is also easy for a competitor with deeper pockets to outbid you. Example: Google AdWords.
Search Engine Optimization (SEO) should always be the first step when you decide to better your website. The purpose of SEO is to make the site better for both search engines and the end user. Example: Any search engine results and where you rank organically.
Viral marketing is a strategy that encourages individuals to pass on your message to others, creating the potential for exponential growth in the message’s exposure and influence. Brides love to read the blogs of wedding vendors. They truly get a taste of the latest and greatest as to what the bride who got married just last weekend did for her wedding. Brides no longer have to wait until next month for her wedding magazine to come out to see the latest trends which are already a few months old by the time the magazine goes to print. Example: Myspace, facebook, etc…
Direct email marketing is a great tool for targeting brides. Using lists of leads generated from other marketing resources (i.e. portals, bridal shows, etc…), users can quickly and cheaply market themselves to potential customers. A number of elements make direct email marketing different from spam or other less sophisticated email campaigns. For example, the sender may use customer segmentation techniques to ensure that the message is appropriate for the group it’s sent to, and use personalization techniques so the recipient is addressed as an individual.
What is a direct sales business?
A direct selling business is an opportunity to sell products online & offline without having to stockpile or ship the products yourself. You are given a website where you can promote your business & takes care of most of the selling & explaining of the company, its products & compensation plan. It gives the average opportunity seeker a chance to make a very good income by using a state of the art income generation system.
Can I make money with direct sales?
Yes you can once you are able to find the right business. Most direct sales companies offer great training & support to help you get your business up & running. You earn money up front with this business model by having your own payment processing page. You get paid before the company. You can make anywhere from $1,000 to $10,000 per month.
What is the difference between a direct sales & MLM?
MLM has a very good business model but you have to rely on recruiting a very large down line before you are able to make anything at all. Let me give you an example. Let’s say that you are selling e-books at a cost of $30 each. Most MLM business compensation plans will give you anywhere from $5 to $10 commission every time you sell their product. You can make income on your front line as well as deeper levels. The first level may pay you $10 each time you make a sale. The second level may pay you $5 every time your down line makes a sale. If you sold 10 e-books at a profit of $10 each, 10 x $10 = $100. Now if you would like to make sales on your second level, you would have to teach your down line how to sell. If they manage to sell 10 e-books, you would make 10 x $5 = $50. Basically you would have to recruit at least 10 people in your business before you make $100 & teach your down line how to recruit before you make any money on the second level. If you do the math you will see that it can take a lot of work in order to make any money at all. You have to wait until the company pays you which can be anywhere from bi-weekly to monthly.
Now with direct sales the compensation plan is much more in favour of the marketer (you). The compensation plans are much higher. If you make a sale today, you get paid today! You collect money up front from your customer. Most direct selling companies (top tier) will allow you to make a commission anywhere from $1,000 to $10,000 up front. To be able to make a $1,000 sale, you only have to sell to one person. In a nutshell, with direct sales you can make a substantial income with only a handful of customers.
How much does it cost to get started with a good direct sales company (top tier)?
It can cost anywhere from $1,000 to $20,000 depending on what level you are coming in to the company with. It may sound like a very expensive deal but this kind of business plan attracts more entrepreneurial minded individuals instead of the job seeker. There are many professionals from other industries that are making it big time in this industry. Keep in mind that most people are shying away from the MLM business model & are headed in to direct sales. The start up costs are actually quite low compared to the potential income that you can make. It is also much cheaper to get started with than a traditional franchise model.
What does it take to succeed in direct sales?
To succeed in direct sales you need a very strong desire for change. You need to be able to think like an entrepreneur. Many people come in & get out just as fast in this industry because they have a hard time dealing with the transition from an employee to entrepreneur. Most people are stuck in their comfort zones & are not used to free enterprise. Most feel safer & with a steady pay check & if for some reason they don’t see money in their first month, their history.
The majority of the people who make the money in direct sales are the people who stuck it out & learned how everything works. They basically did what it takes to succeed & get what they wanted. It may take up to 6 months or a full year to master this business but it can be very very rewarding. Top earners continue to pave the road for the future entrepreneur by proving that you can make up to 6 or 7 figures in this industry. They have worked very hard to be in the position that they are in but are heavily rewarded for their efforts.
It takes good communication skills, organization skills, discipline & a white flame burning desire to succeed in this industry. However once you do, you can make way more than a doctor or lawyer without spending 10 years in school. You will also have the privilege of being able to spend most of your time with loved ones or doing what you love.
Who should apply?
Only people who are 100 percent serious about replacing or surpassing their incomes from home should apply. People who have a genuine desire for time freedom & prosperity. People who truly wish to make an income of at least $5,000 per month. If you have issues with job security then this is definitely NOT for you.
In closing I would like to say that this industry can be very challenging but rewarding for those who will do what it takes to succeed. More & more people are figuring out how to succeed in this industry everyday.
Most people who start marketing online try to get into affiliate marketing of some kind, They find their selves searching through many affiliate programs and direct merchants, This can be a huge task in itself for a new affiliate, Then the question comes up, should I use affiliate programs or direct merchants or both, Direct merchants can take some time to join, once you find one that you want to join you have to go through the application process with each one.
The good part is that many direct merchants offer lifetime or reoccurring cookies, as well as commissions for sub affiliates, and 2nd tier commission payments, These commission structures can be handy for an affiliate marketer. Joining affiliate programs can be a good because you can sign up for one program and promote many merchants and products from one account and get paid from one central source for them all.
Residual commissions are received when the program offers a membership or a subscription of some type that reoccurring, You then get paid for each member that signed up through your affiliate link for as long as the member keeps the subscription or membership, Their can be a lot of money made with this type of program.
In my opinion for the long haul merchants are a way to go because most of them have lifetime cookies, What that means is if someone clicks on your link and then goes back a year or two later you will still get paid for that customer, As with affiliate programs most cookies will expire after one month, As an affiliate marketer you will want to find out before you join any program.
Affiliate programs are based on many different and unique ideas and by operating one accordingly you can rest assured that your business will greatly benefit from it.
When you first start seeing the results from your affiliate marketing start coming in you are probably going to be quite amazed with the whole event. But you will never know unless you give it an honest try, Get your research done and get started if you havn’t already to get on your road to financial freedom.
In order to fully understand how affiliate programs work you are going to have to get your feet wet and get started, It may take a little time to see results but be patient and dedicated and it wont be long before you start to see the results that you are looking for.