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Product Vs. Compensation Plan

When I receive business offers of all kinds or I find an announcement or launch of a new company, those who advertise it generally worry about highlighting the income potential that you can have, headlines with phrases such as “Financial Freedom“,”secure the future economic ”,“ residual income“,”retire young“, etc. etc. etc.

Multilevel Marketing: Product Vs. Compensation Plan

The greatest attention is directed to explaining every detail of your profit plan and the income potential that we can have if we join your company.

But… what about your products or services?

The number of new and not so new companies that use the network marketing system grows day by day, mainly through the Internet.

On the Internet it is very easy to change or join a new company, with practically a single click you can start a new business, and “better” than the one you are in now (and I say “better” in quotes). You will tell me … “I am still faithful to my company”, OK. But your organization of distributors or affiliates?

Before, to attract new partners for your business, they had to do it in person, having to go to the live presentation in an office, conference room, hotel, etc. Today your organization is consciously or unconsciously witnessing different opportunities every day. Each new company offers them more profits, more prizes, more bonuses, rapid growth, paid vacations, etc., etc., etc., and this is one of the reasons why we go from business to business.

It would not be the first time that a “Group leader, he takes his entire organization to another company, and if he were in your group, your check would surely fall apart.

There may be companies that appear to have greater potential compared to many other companies, even better profits than the company you are with now. But you must ask yourself the following: “Is this profit potential sustainable over time?

In my short experience since I started my first MLM business in 2000, I have seen several companies born and die. They offered us the definitive solution and their profit plans assured us to obtain income for life !!! In my view of Network Marketing, the fundamental pillar by which every company should lay the foundations are its products and / or services.

Mainly and first of all, what sustains and makes a company great are the products and / or services they offer. For this reason, it is advisable not only to analyze the company’s compensation plan, but also to offer a product or service of quality and high demand.

– If your company offers a bad product or service, I assure you that it will not last over time.

– If your company offers an overvalued product or service (that we can obtain the same product on the market at half the price and up to a tenth of what we pay for it), in that case it will not prosper either.

– If your company is sustained only through a profit plan and does not have a product or service to offer, forget about it. Not only because it will not last, but it is also illegal in most countries, in that case you would be facing a Pyramid System.

Not only are the companies responsible, but to a large extent we are the “networks”We are also dedicated to promoting and selling the profit plan, and little or nothing of the products and services.

Always remember this: What sustains and grows MLM companies, the star of the business, is the products and services, NOT your profit plan.

The best way to select the company to work with and ensure that your referrals will not disappear from one day to the next, is by asking yourself a simple question:

Would I join this company even if it did not have an economic benefit, just for the product or service it offers me?

If you “fall in love” with the product or service, surely your clients and partners will too, and it will be more difficult for them to want to leave the company because they are not obtaining the income they expected or because another company offers them “better earnings”.

In summary, after all this analysis, my recommendation is that you do not stop so much in the profit plan, but also take your time to analyze the products and services that you will recommend.

Of course, a good compensation plan is also important, but if you want to receive your check every month and for many years, join a company that offers good products and / or services, solves problems and makes life and business better. of people.