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Tuesday 6 July 2010

Getting Paid - Why Does It Have To Be So Confusing?

By Hamish Hayward

There are many different reasons why people choose to get involved in network marketing. Although it may not be the primary reason for many people, getting paid will be rank high on most people's list.

So it makes sense that, when you are deciding which of the many available network marketing opportunities to get involved in, that part of your evaluation process will consider the payment, or commission scheme in place.

At this point things can get a bit complex. Unsurprisingly, almost every network marketing company in business today will claim to have the best pay plan available. They probably genuinely believe this (and they might be right) and will usually devote several sheets of paper or screens to show this to you in all its glory. Expect to see the word "revolutionary" used at least once.

Some of these schemes can appear a bit complex to say the least. There will almost certainly be a matrix of some kind involved and there will probably be some kind of "ladder of success" where you earn new ranks and titles as you progress in the business.

It can seem a bit daunting, trying to work out how long it will take you to get from Space Cadet to Star Fleet Commander and what it all means in terms of money - but focus on a few simple questions and you can cut through the mumbo-jumbo.

1. What will you get paid for?
2. How much will you get paid?
3. When will you get paid?
4. How will you get paid?

** What will you get paid for? **
Surprisingly enough, this is a (slightly) more important question than "how much?" - for one simple reason. If your main, or only, source of income results from recruiting other people into the business, then there's a very high possibility that you may be involved in a pyramid scheme.

Your main income should arise when you sell a product or service to a customer, not when you recruit someone. There's absolutely nothing wrong with profiting whenever someone who you have introduced to the business makes a sale - but you shouldn't be making significant income just for recruiting them.

You should also check if there is a "qualifying" level of sales that you need to make each month in order to get your commission. It can be very frustrating if, having built a large customer base and a healthy downline team, you miss out on your monthly cheque due to an insufficient amount of personal sales.

** How much will you get paid? **
Having satisfied yourself that you're getting paid for moving a genuine product or service, you can now focus on how much you'll be earning. Obviously you want to make as much as you can - but how much is enough will depend upon the type of product you're going to be marketing.

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