Understanding Multi-Level Commissions: And Their Role in a Successful Company


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MLM Explained Including Myths, Pitfalls and Tips to Success.

A lack of timely information results in confusion, which breeds mistrust between a distributor and their brand. Today, InfoTrax announces that they have received a business process patent for their product, known as FastTree. This capability not only benefits the independent distributor who gets accurate, relevant and timely information about their business, but also gives companies the ability to speedily act on that information for timely recognition and intervention when needed.

Understanding Multi-Level Commissions and Their Role in a Successful Company (Revised edition)

About InfoTrax InfoTrax provides essential management solutions and services for direct selling company growth. Supporting more than direct selling companies doing business in 25 countries, InfoTrax is the overwhelming choice of both startups and enterprises. It's a person brought into the business by a sponsor as a new member.

Recruits are trained by their sponsor or "upline" see below representatives. Downline: Your downline contains the recruits brought in below you. This can include members you've recruited as well as those your recruits have brought into the business.

Compensation Plan: Similar to the plan, this outlines all the ways reps earn money. To be legal and not a scam , the focus when it comes to earning money needs to be on the sales of products and services, not on recruitment of new members. Along with commissions on sales made by you and your team, many companies pay bonuses and increase commission splits based on volume of sales.

Publisher Description

Network Marketing: Multi-level marketing is sometimes referred to as network marketing as well. There are many myths and misconceptions about MLM , including its legality. For an MLM to be legal, it needs three things:.


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However, don't let the term pyramid throw you off. It's not the shape of the organization that makes it illegal. In fact, most companies have a pyramid structure with a CEO at the top, VPs next, mid-level managers etc.

Understanding Multi-Level Commissions: And Their Role in a Successful Company

What makes an illegal pyramid scheme is the lack of a quality product, or that income is earned on recruiting, not commissions from sales. MLM businesses get a bad rap because they have such a high "failure" rate.


  1. Multi-level marketing - Wikipedia.
  2. ISBN 13: 9780971753617.
  3. Financial Stability in the Aftermath of the Great Recession.
  4. However, there is much misinformation regarding these stats. This means that compensation for sales reps is based on both direct product sales and commissions or overrides that come from other recruited sales reps. Pyramid schemes actually work the same way, although the difference between a pyramid scheme and an MLM is that a pyramid scheme relies on recruitment only, and not product sales, for revenue.

    To avoid pyramid-like structures, it's important to avoid direct-selling operations that emphasize recruitment over sales. In the DSA reported that 84 percent of direct sales consultants worked 29 hours or less per week. Typically, new direct sellers buy a startup kit from the person who introduced them to the product. Costs of kits vary considerably and are based on the price of the products sold.

    ISBN 13: 9780971753600

    Fees and upline commissions may be deducted from sales, and products may have a variable wholesale pricing structure based on volume. Also, each company has its own set of rules in regard to selling back unsold inventory to the company. To best understand how specific direct-sales operations work, read the contracts and documentation carefully, and ask lots of questions before you start. Now that you have a basic understanding of direct selling, ask yourself why you want to get started in direct sales and the amount of time you want to put toward this endeavor.

    Do you enjoy the idea of entertaining in your home while at the same time making some money to offset the cost? Are you trying to build a full-time business and hope to earn a significant portion of your family's income from direct selling?

    Understanding Multi-Level Commissions eBook by Mark L Rawlins - | Rakuten Kobo

    Are you primarily interested in direct selling because you love certain products and want to buy them at a discount? There are no right or wrong answers to these questions and they're all legitimate reasons to get started in direct sales. Whatever scale you determine for your direct selling endeavor, the determining factor in its success will be you. Ask yourself if you have the personality of a salesperson.

    Contemplate if you can balance family and work all in one place.

    The True Odds Of Multi-Level Marketing (PART 1)

    To answer whether you have the right personality for a career in sales, you must be persuasive and have a pleasant yet persistent manner.

    Understanding Multi-Level Commissions: And Their Role in a Successful Company Understanding Multi-Level Commissions: And Their Role in a Successful Company
    Understanding Multi-Level Commissions: And Their Role in a Successful Company Understanding Multi-Level Commissions: And Their Role in a Successful Company
    Understanding Multi-Level Commissions: And Their Role in a Successful Company Understanding Multi-Level Commissions: And Their Role in a Successful Company
    Understanding Multi-Level Commissions: And Their Role in a Successful Company Understanding Multi-Level Commissions: And Their Role in a Successful Company
    Understanding Multi-Level Commissions: And Their Role in a Successful Company Understanding Multi-Level Commissions: And Their Role in a Successful Company

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