BEAUTY FROM THE INSIDE USING CUSTOM NUTRITION

Network Marketing came into my life back in 2004. A friend introduced the networking concept to me. I was very excited at the possibility that this business opportunity presented. As anyone in the network marketing field has known, this industry has the amazing ability to produce a significant income even if you only do it on a part time basis.

Here's why.

In Network Marketing, there are usually at least 2 ways to earn money. First is the products. You buy them at distributor cost and sell them at retail. The profit goes right into your pocket. I've heard it called, "Hip National Bank"

The second way is with the compensation plan. This is where big money can be earned. You find people to do the exact same thing you are doing, buying at distributor cost and selling at retail. Now this is where the magic of network marketing starts. From each person who comes into the business after you, you earn a presentage of money from their sales as well as your own sales. Let me see if I can explain it better.

Lets say you joined XYZ Company. You love their products and sell some to your friends and family. They love them as well. Now you tell one of your friends about how they could sell this stuff as well. They could some extra money on the side. They decide to get their own business going. Every time your friend makes a sale, they earn the retail profit as well as points toward a commission check. You earn points too, from their sale.

So, lets say you have 6, 8, 10, 50, 100 people join you company and they are all in your organization. You earn commission points from all those sales.

Now, different company's have different compensation plans. Lets take a look at some of the differences.

1. The Unilevel Plan

In this plan, recruits do not advance to positions above basic distributors, regardless of their performance.The principal advantage of the unilevel plan is that it’s easy for companies to administer and for distributors to explain to potential recruits.

Its chief disadvantage is its lack of flexibility in achieving some of the goals believed to be attainable. In addition, unilevel plans are limited in depth of levels of payment which inhibits deep sales organizations. Instead, front line width occurs which may cause sponsors to be "thin" in support. Over time, most companies that start with unilevel plans adapt them to look more like a stairstep breakaway plan.

2. TheStairway Breakaway Plan

This is the oldest and most common type of network marketing compensation plan. After meeting certain performance criteria, a distributor advances in rank and "breaks away" from his or her original sponsorship line. The original sponsor receives a percentage override on the sales of the entire breakaway organization. In a way, a stairstep breakaway plan is a unilevel plan with the flexibility to motivate distributors to perform and advance.

Its chief advantage is that it has a good track record, is easy to modify, is accepted by regulatory agencies, and is driven by volume and performance.

The primary disadvantage of this plan is that it is sometimes so complicated that it’s difficult to explain to new recruits. Another disadvantage is that if the company does not monitor its distributors, they tend to get involved in inventory loading. And sometimes, there is an unreasonably high ongoing monthly personal purchase volume requirement.

Nevertheless, the stairstep breakaway plan remains the most tried-and-true type of plan out there today — and the most likely to survive in the decades to come.

3. The Matrix Plan

This plan looks like a grid in which a distributor is limited to a certain number of recruits at each level. For example, in a 3-by-5 matrix, each level down to five can have only three downline distributors.

This type of plan is sometimes considered to be more gimmicky than others. Why? Because due to the width limitations, new recruits may find themselves placed underneath upline distributors who did not directly recruit them. In a three-wide matrix, for instance, the fourth distributor you personally sponsor would be placed under one of the first three distributors you personally sponsored (your first-level distributors).

This automatic filling of spots in the matrix can be attractive to novice distributors if they sign on with strong leaders who help fill their grids. Also, it works well in companies where most of the products are used by the distributors, rather than sold to outside consumers.

Matrix plans have been subjected to attacks by regulatory agencies because they sometimes look like "a game." By and large, they have not had a successful record in the industry, and they foster nonproducers, which makes the upline distributors resentful. Nevertheless, several major companies operate matrix plans. Only time will tell whether these plans are here to stay.

4.The Binary Plan

The binary plan is the newest on the scene. In a binary plan, a distributor is allowed to occupy one or more "business centers," each limited to two downline legs. Compensation is paid on group volume of the downline legs rather than a percentage of sales of multiple levels of distributors. In other words, payment is volume driven rather than level driven. Sales volume must be balanced in the two legs to be eligible for commissions, which are paid at designated points when target levels of group sales are achieved. The distributor may occupy multiple positions and may re-enter or loop below other two leg matrices in which he or she has been active. There is no depth limit on payment but each matrix has a finite amount that can be paid out, thus necessitating involvement in multiple two leg matrices. Payment in binaries is often on a weekly basis.

Proponents of binaries cite several advantages. First, they like the weekly payout. Since it is a series of two leg matrices, it is simple to explain. Group cooperation is promoted because payout is on group volume and requires balancing of volume in each leg to be eligible for payout. Some call it more democratic because of the limitation on payout in each matrix, the unlimited depth of payout, and the allowance of looping or re-entry.

About Commissions

Different company's again, pay different percentages toward commissions. Some will pay 10% on your first level, 5% on your second level, 2% on your third level and so on. Depending on the company you choose, will determine which plan you get.

About My Business

My business is Market America. Almost everyone I say that name to tells me they have never heard of them. I think it's because until recently, we conducted our businesses solely by word of mouth. It's only been in the past few years that we have started taking Market America online as individual people. Market America themselves have always had an online presence, but now there are Market America distributors everywhere putting up their own sites and driving even more traffic to their MA web site.

Market America is a hybrid, Binary Plan. It is true that you have to have both "legs" reaching the same benchmarks to get paid. If only one side reaches, you may forfiet the pay. This is an incentive to keep both "legs" growing at the same pace or very close. They decided that this made the pay plan "fair". The people who worked hardest got paid the most. Makes sence to me. Work hard and you deserve to earn more. Don't work so hard, don't get paid as much. It's based on work.

Want a quick overview? I'd be happy to go over it with you. Just give me a call and we can set up a time to do just that. If you care to check it out on your own, go ahead and do so. You can find it at  www.dandmmoseley.com  Click on "about ma". Go through the step by step presentation. Write down your questions and we can get together so I can answer them for you.

Here's a bit about MA from our Senior Vice President, Loren Ridinger.