Regardless of how good any MLM plan may sound, none of these plans will make you money if you don’t sponsor anyone and develop them. Only YOU can make the plan work for without you, the plan is dead. DO NOT get too complicated about Compensation plans. Keep it simple while explaining to your prospects and make sure you understand that you can make money with it if you work your plan.

Below are 3 general areas to make money in any mlm plan

1) The First area is Retail Profit.

You must show the prospect that they can earn a retail profit with your products and services. The margin can be anything from 10% to 50%.

This is what traditional businessmen are doing. They buy products at a discount and sell them to consumers for a profit.

However, you must understand that if you are simply selling MLM products for retail profits, you are not leveraging on the true power of MLM. The true power in MLM is the overriding commissions generated by your network, which is the second income source that I’m going to explain.

2) The Second Area is Team Overrides.

This is where, just like a Real Estate broker, or Insurance agency, you get to develop your own sales team. ‘Sales Managers’ get paid a certain % of override off of them, just like the Real Estate and Insurance Agents do.

Some MLM skeptics argue that it is unfair to override on other people’s success. This is not really true. Many people don’t understand that for the team to generate substantial profit, the sponsor will have to provide training and coaching. In other words, the overriding commissions are rightly earned by the sponsor as a result of his effort in training his downlines.

To achieve overriding commissions, your goal is to help your people to make more sales. You have to help people or help your team in order to succeed. If they achieve success first, then only you will succeed.

3) The Third Area is Leadership Bonuses.

This is where you help develop Successful leaders in your group, and you get an additional bonus or override from your group. Some companies even have revenue sharing scheme, in which you get to share certain percentage of the company’s overall earning when you achieve certain status. It is as good as being one of the shareholders of the company.

MLM business is a people helping people business. The true wealth is made by helping others develop their leadership potential. Once your leaders are in place, your MLM business will go on autopilot.