There are hundreds of different pay plans and variations out there.
Which one is best for you?
That question seems very simple, but the answer is not.
Are you going to be in it for the long haul, or just for this week or month?
Can you recruit hundreds, or timidly suggest it to your co-workers?
Are you willing to advertise, or do you want it all done for you?
Let me start off explaining that every PAY PLAN is a plan for payment.
Payment for a required action, usually a sale, but not always.
Keeping that in mind, can you successfully sell (or whatever action is required)
enough widgets to support your efforts, personally? Is it going to be worth your time
and expense to get each sale, and is the reward (profit or commission) large enough?
There are plans that operate much the way most of the business chain operates.
They pay the largest amount upfront to the one who gets the product to the end consumer.
Sometimes (as in many ClickBank products), that is all that they pay. It’s a 1 shot deal.
There are others that have a continuing scale (as in LAD15.com’s Leveraged Ads), where they pay out on 5 levels ($100 to ALL 5 advertisers) per $600 sale. It’s like a relay race. You get a few initially, then they take the baton and get themselves a few, etc. It can explode.
Both your advertising efforts and your income. In the exact same vehicle.
The important thing to figure into an equation like this is not that you will only get $100, but HOW MANY $100 Bills you can amass at those levels, for effort that you did months, or even years, before?
The FIRST YEAR is $600! Advertisers can Make Money even if no one buys their service/product, which is highly unlikely. Plus it adds an extra revenue stream possibility with ZERO additional effort.
You need the upfront commission to justify whatever expense comes with the product or service, and getting the word out..
My belief is that if you can’t get YOUR initial investment back (and maybe even some profit, however small) in 3 or 4 sales, then it doesn’t pay enough for my time, therefore it won’t pay enough for someone else’s time (my recruits or sales).
This is also very important since studies show that the “average online marketer” will only bring in 2.77 (just about 3) people into any plan or program. Keeping this in mind, I try to recruit above average people, or train average people to perform at an above average level. I need them to succeed and prosper, for me to accomplish my ultimate goals. But, I MUST take responsibility for my own success.
Many of the Vitamin and magic potion products have Bonus levels (usually named after jewels: Diamond, Ruby, etc.), in addition to the “regular” payplan. They pay a smaller amount upfront so they have the funds to pay the car and house bonuses to “the leaders”. Many pay on less than 1/2 of your organization’s total sales volume. “The smaller of 2 legs”. To me, those pay plans operate much the same ways as banks and stock casinos (oops-market), and Government, benefiting the rich, on the backs of the poor. Too much greed.
Many now offer a 100% commission. How can this be profitable? It’s NOT! They get a fee, or someone on their list, or upsells.
100% is great. It is also a LIE! (An “almost 100%” is listed below)
You don’t even get 100% when you own the product!
You have refunds, customer service, website, hosting, processing fees, etc.
My favorite concept for a payplan is the “reverse 1 up”. I have tried many. I love the concept. With the reverse 1 up, sale #1 you keep the commission (usually enough to break even-not counting fees). Sale #2 is passed up to the next qualified person above you. #3 Onward – You keep, (usually putting you into profit). Once you have passed up #2, you are done passing up. You become qualified. Now everyone that you recruit has to pass up #2 to YOU!
That doubling effect make this very powerful, and helps average people perform at above average levels. It also makes it worthwhile for your sponsor to actually help you to get started, since they will be getting your #2!
Again, since the “average” person will only bring in 3, many can succeed in this type of endeavor. And success propels them to perform at above average levels.
The best concept that involves pass ups, overrides, etc is with 25 Dollar 1 UP. I joined at the $500 level, because I could afford to do so. But anyone can start for $25 (+ a 1-time $10 Hosting fee). No Monthly Bill.. EVER! And Make unlimited $25 commissions when anyone joins them.
Except for #2. You will have to pass up #2. That’s not bad though, and here’s why. Everyone that you get WILL HAVE TO PASS THEIR #2 TO YOU, once you have passed up your #2, to become “qualified”.
I don’t mind what level new members come in at. I want people to feel comfortable with their purchase. Guess what? If you come in at $25, and sell a $250 package, You will get the 1st $25, and I will make $225, doing nothing!
To truly create an Auto Income you need to go with a plan that you fully understand, and can help you to accomplish your goals.
If it takes you more than 10 minutes to explain to your wife/husband/kids/friends or parents, it probably is not going to work for you.
I personally believe that if you are not making positive money after 3 months of genuine effort, QUIT! Find something else or get a job.
Except in the case of $25 1-UP or LAD15 as there is no monthly fee or charge , so just keep working it until you find success.
You don’t want to work at explaining how to make money, or you never will. Rather, spend that time explaining the product, service or benefits.
Find a way that works FOR YOU, so you can work the program and create your own Automatic Income.
LAD15.com/RIPAny and all comments are greatly appreciated.