Network Marketing – How it Pays
Network marketing, or multilevel marketing as it is also called, depends on independent agents and distributors to sell products from a parent company. Many people make this form of business pay. The structure of payment varies from company to company.
Here are some ways you might get paid.
· Binary plans. This plan works by envisioning a pyramid, with you at the top. You can only have two people below you in this structure, and you get a percentage of their sales. However, if you sign up more people, you have to place them at lower levels of the pyramid, in one of the four places below the two below you. This benefits both you and the people below you, making everyone benefit.
· Uni-level plans. This is a very simple plan, in which the pyramid that you build with your recruits expands horizontally, each new agent being placed under you, then their agents expanding the pyramid vertically, so that their recruits’ commissions come back to you as well.
· Matrix plans. This plan is a combination of uni-level and binary plans. You can place more people on the first level than in a binary, but it is still a limited number. After that, you continue to place new recruits in the matrix beneath your original recruits, thereby increasing the benefits to everyone.
· Hybrid plans. These are the most complex types of plans. Rather like a matrix plan, they combine elements of different payment systems to structure your business network and to filter commissions up the pyramid to you.
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