Is My MLM Commission Plan Fair?

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While MLM companies have been around for over fifty years, a lot of changes have occurred in that time period, allowing a diverse group of people to find success in all types of MLM business initiatives. Although experienced MLM owners can easily spot a problematic commission plan, those who are new to MLM can sometimes be suckered in and not realize what they should look for to ensure the commission plan being offered by their MLM is a fair one.

When evaluating MLM companies such as ZynTravel, it is important to research and learn all the information you possibly can about the opportunity. While there are many names for compensation plans, they all fall into four basic categories:

  • The Stairstep Breakaway Plan offers distributors the opportunity to rise from their initial sponsorship line while the original sponsor enjoys the benefits of receiving a percentage override.
  • The Unilevel Plan is the most basic of the MLM commission plans. Distributors stay at the basic level no matter how successful their performance. While this plan is the easiest to implement, it lacks the flexibility of some MLM commission plans.
  • The Binary Plan is a fairly new addition to the MLM commission plan lineup. In this plan, compensation is paid according to group volume and downline legs instead of the percentage sales of multiple levels.
  • The Matrix Plan limits distributors to a certain amount of recruits. This type of plan works more effectively when most of the products are being purchased and used by distributors rather than consumers.

Although any of these types of plans can allow you to be successful, not every type is for every person. When deciding on an MLM company, there are a few key factors to look for to determine whether or not the commission plan will be fair and give you the payout you are looking for.

It is important to check the overall payout to determine the percentage the compensation plan pays its distributors. Most MLM commission plan percentages average between 35 to 45%. If the plan you are considering falls into this percentage, it should be a good fit.

What is a Good MLM Commission?

A good MLM commission plan should have a lock-in option. This option allows you to lock-in your status once you reach a certain level so you cannot be downgraded should you have an off month.

It is a good idea to research information on the company’s orphan commissions. If the company receives the orphan commissions, this means the commission plan is not as fair as it should be.

Ideally, these orphan commissions should roll over to the next payout period. All MLM companies offer different perks to entice potential distributors to join. It is important to check out the perks and the qualifications required to earn them so you will know if the plan will be able to offer you what you are looking for.

No MLM plan is perfect, but there are many fair companies, such as, that offer straightforward commission plans. No matter which MLM company you choose to go with, research is the key to being sure the compensation plan you are being offered is a fair and sustainable one.