How MLM Home Based Business Companies Rip Off The Little Guy
Lee Williams
Have you ever taken a really close look at your mlm work from home opportunity pay plan?
MLM home based business compensation plans have always been the work of smoke and mirrors. Have you ever seen compensation plans with the terms "weak leg", "strong leg", "leg balancing", "group purchase volume" or "flushing volume"?
These are just a few of the terms that are commonly used by many mlm home based business companies to hide the fact that there is a large amount of commission money that will not be paid to the part-timer, the "little guy". This is the terminology of the typical pay plan, where money is taken from the average person and funneled up to the "heavy hitters" or back to the mlm work from home opportunity company.
When the compensation plan is explained, the company will proudly state that they pay on a certain number of levels. The question is, do you actually earn commissions on all of those levels? What do you have to do to qualify to earn commissions?
In most of these plans, you'll need a certain amount of "Group Purchase Volume". Often times the amount that needs to be produced in order to qualify is only achieved by a limited number of people. These people are usually the big hitters.
MLM work from home opportunity companies and the big hitters are well aware that very few part-time network marketers will ever achieve these goals.
Does your company's pay plan say that you must sponsor a specific number of people who must also sponsor a certain number of people and generate a certain amount of "Group Purchase Volume" themselves before you are eligible to earn commissions?
Again, the mlm work from home opportunity companies and the big hitters realize that most part-time network marketers will not be able to achieve this goal.
Many binary plans require some sort of "leg balancing" and if your legs or income lines are not balanced according to the plan specifications, you do not earn commissions, even if your team meets the group purchase volume requirements.
Part-time network marketers tend to struggle with these hard to achieve qualification requirements until they finally realize they will probably never qualify to earn commsisions. This where they realize that their dream of financial freedom may never be achieved. This is when they give up.
Eventually, even the full-timers begin to struggle. They realize that 90% of their downline are part-timers. As their downline members begin to drop out, it becomes harder for them to maintain the qualification requirements. Ultimately, this leads to the unavoidable conclusion, and the frustrated full-time network marketers eventually just give up and quit too.
The fact of the matter is, mlm home based business companies with group purchase volume requirements and complicated compensation plans are not fair to the part-time network marketer and they produce a very high number of dropouts.
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