DO YOUR DUE DILIGENCE 3.2

Do your due diligence 3.2

UNDERSTAND THE COMPENSATION PLAN

How you get paid matters, the work involved to create success matters. It should matter to you if you're building a business that involves other people. The problem people make when choosing a business opportunity is they make decisions based on self. The don't consider potential customers nor potential business partners. People make decisions based solely of what they think and how they feel. People are concerned about leadership which matters. But I've seen and watched people disregard the products, services and because they don't understand compensation plans they just went off what someone else told them. 

You should be able to trust people. And you should be able to take people at their word. Unfortunately people lie, or they tell you only what you want to hear. Perhaps they tell you what they think you want to hear. It's assumed that people only want to hear the positive. You should be actively listening for the balance.

It is one thing to build a customer base and to focus on customer acquisition.  But it is another thing to build a team or a sales organization. With customers there is no excuse for lacking personal experience and knowledge of your products and services. With business partners there is no excuse for lacking understanding with your compensation plan. People participate in business to earn money and for most the compensation plan is extremely important to them. Never promote or sell products and services that you've never used, tried or proven. Never promote or sell a business opportunity that you don't understand. WHY? You don't have credibility. Without credibility people can't trust you. They may like you, they may know you. But will never do business with you!

Do your due diligence 3.2

HOW MUCH WORK ARE YOU WILLING TO DO?

Too often people dismiss or disregard and never consider the work necessary to create success in an opportunity. When it comes to the skills it is the same across the board. Some examples. Professional athletes who play for the opposing team. They all have the same opportunity at the beginning of the season they start with 0 wins and 0 losses. How they train and prepare before a game will determine their level of success. Even if athletes are with in a 1% difference in skill it comes down to who makes the fewest mistakes. They all have the same skills, the same level of work ethic or they would of never been drafted to play at the professional level. The home based business industry is no different. 

The truth is you can only play for 1 team at a time. Switching companies is like switching teams. It takes the same skill to make 1 opportunity a success as it does any opportunity that you choose. And it takes the same skill to succeed with 1 compensation plan as it does the other.  It doesn't matter which company pays out the most at the pinnacle point. If you don't have the skills to get to that level then its irrelevant. 

There is no such thing as the "most powerful" or "best" compensation plan in the history of the industry. If a company doesn't pay out 50% commissions as a minimum up to 85% or better consistently through the entire compensation plan then it is the "most weakest" or "worst compensation plan in the history of the industry. And 99.9% of all compensation plans are built with the same concepts and same intentions regardless of what the compensation plan is. The compensation plans in our industry was not designed for average/below-average people.

Do your due diligence 3.2

THE MATHEMATICS HAS TO MAKE SENSE

All money has to cycle through the company first before commissions can be paid out. If the product based compensation plan is not based 100% on volume that is a red flag. That right there is the flaw. Every company has a primary qualifier. Anything beyond that initial qualifier means it's built on ranks and levels. And this also means that there are complex hoops that you must jump through in order to earn on additional levels or additional lines of distribution. 

Think about the start up cost, think about the cost of the products, think about the requirements to be qualified to earn. Consider the amount of money the company is generating. A percent of a commission does not matter. If your cut is less than 50% of the profit from your personal production is not worth your time. It doesn't matter what compensation plan you're working in. If you did the work you should be entitled to at minimum 50% of the work you did at all times. Or at any given time. How are you a partner if you kill yourself for 20%, 15%, 7%, 3% or 1%. 

What about your team's production. If you build a customer base, and if your team duplicates your results. Should you earn more or less? MLM compensation plans pay less and less for more and more production. There is always a cost to doing business. If the company pays you 50 - 85% the company still makes money that leaves 15% - 50% for the company to pay it's bills or develop more products, or create more individual branding. I don't care how good the products and services are. I don't even care how much they cost. When it comes to the labor 1 partner provided the opportunity the other partner moved the opportunity. Anything less than 50% is unacceptable. 

 

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