Evaluating each of the myriad of home business opportunities objectively is not an easy task. The marketing materials and website each business has are designed to accentuate the positives and forget the negatives. This is'nt good nor bad in itself; it's just a fact. After evaluating at over 100 business opportunities, I made a check list of "Things You Should Know." These are further divided into Things You Should Know About The Company, The Products, The Pay Plan, and The Training. This article will cover what you have to know about the pay plan before you start.
Things to know about the pay plan
1. If you are going to put in the time and effort it takes to build a successful business, make sure you are working toward a secure and increasing residual income. This will generally come from one or both of two sources: from ongoing monthly fees (dues, subscriptions, etc.), or from repeat sales to the end customer. If the pay plan has any kind of breakaway feature, you will constantly be building just to keep up with the parts of your business you lose as people "break away" from you.
2. Keep away from any kind of "pass up" pay plan. Pass ups can be called many different names ("qualifying sales," for instance), but all of them do the same thing. The first "X" number of sales you make goes to your sponsor. After that, your sponsor makes no more income from your efforts, but has "X" new people to produce sales to be passed to him. Once your pass up requirement is met, your sponsor has NO incentive to help you.
3. I am a fan of network marketing, but the system has one great flaw-- to make any serious money, it takes tens or hundreds or thousands of people in your downline. Most often, this is a result of the small profit margins available to you from the sale of products. If each sale or recruit earns you only pennies a month, the money does not pile up very quickly. Look for the kind of plan where you can make up to $900 or more per sale.
4. Look for a pay plan that you can move up through without harassing all of your friends and family. If you have already been through a few "can't miss" opportunities, you probably have already found this out. If you are looking for your first venture into the home business field, prepare for the fact that your friends and family won't be interested in what you are doing until you are making some money without them.
Once the company, products, and pay plan passed your personal requirements, move on to learn what you must know about the training you will get.
Things to know about the pay plan
1. If you are going to put in the time and effort it takes to build a successful business, make sure you are working toward a secure and increasing residual income. This will generally come from one or both of two sources: from ongoing monthly fees (dues, subscriptions, etc.), or from repeat sales to the end customer. If the pay plan has any kind of breakaway feature, you will constantly be building just to keep up with the parts of your business you lose as people "break away" from you.
2. Keep away from any kind of "pass up" pay plan. Pass ups can be called many different names ("qualifying sales," for instance), but all of them do the same thing. The first "X" number of sales you make goes to your sponsor. After that, your sponsor makes no more income from your efforts, but has "X" new people to produce sales to be passed to him. Once your pass up requirement is met, your sponsor has NO incentive to help you.
3. I am a fan of network marketing, but the system has one great flaw-- to make any serious money, it takes tens or hundreds or thousands of people in your downline. Most often, this is a result of the small profit margins available to you from the sale of products. If each sale or recruit earns you only pennies a month, the money does not pile up very quickly. Look for the kind of plan where you can make up to $900 or more per sale.
4. Look for a pay plan that you can move up through without harassing all of your friends and family. If you have already been through a few "can't miss" opportunities, you probably have already found this out. If you are looking for your first venture into the home business field, prepare for the fact that your friends and family won't be interested in what you are doing until you are making some money without them.
Once the company, products, and pay plan passed your personal requirements, move on to learn what you must know about the training you will get.
About the Author:
Trying to find a good and reputable home business or mlm? Don't risk getting ripped off. Read Jack Beddall's informative series of articles about things you need to know to evaluate any online opportunity.
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