Every company has a way they pay their distributors, known as a "Compensation Plan"..or "Comp Plan". Every company has one and that is how you are paid, by the volume you have created by the Comp Plan.
You go out, and create Volume of sales, and you get a certain percentage of the sales. Most plans focus on the sale, or movement of products and services to the marketplace, and that is what drives the wealth vehicle.
There are different types of Comp Plans to know about and consider, and there are many more Hybrid forms, but generally there are 5 different types, and you need to really understand the Plan that your company has.
The Stairstep is a simple plan that has requirements that you must meet to get up the "Stairs of Success".
The Unilevel is a simple "Number of levels" that the company will pay you, and usually there is no promotion or rank.
The Binary is an interesting design for a Comp Plan. It usually has 2 "legs" that you can have "Business centers" in, and you have a volume requirement to get paid on each leg. There is what is called "balance" in the Binary.
This plan has been said to have become somewhat unpopular in the industry, as you could lose the business you build, once it gets to a certain level of success, and it "breaks away".
The matrix is a computer driven plan that people are put into your group by computer, and they go in the next available slot.
The Stairstep is a simple plan that has requirements that you must meet to get up the "Stairs of Success"...each stairstep is a promotion based on Volume usually, and each promotion you make more money.
Usually you must qualify each month for the rank you obtain to get paid at that rank. And the stairstep usually has a number of levels it pays down to.
The Unilevel is a simple "Number of levels" that the company will pay you, and usually there is no promotion or rank. You make money by getting a certain override off of the volume, and usually there is a requirement of volume to qualify for a check.
The Binary is an interesting design for a Comp Plan. It usually has 2 "legs" that you can have "Business centers" in, and you have a volume requirement to get paid on each leg. There is what is called "balance" in the Binary...you must balance the volume form each leg to make sure you don't have a runaway leg...one leg explodes, while the other one sits idle...you must balance the two, and you usually can override the same volume a number of times with different business centers.
This plan has been said to have become somewhat unpopular in the industry, as you could lose the business you build, once it gets to a certain level of success, and it "breaks away" to no longer be a part of what you get paid on. It usually is a stairstep type of Plan, but I have seen it in others as well. I disagree. It is a good plan for those who work it.
The matrix is a computer driven plan that people are put into your group by computer, and they go in the next available slot. Usually this plan is combined with some form of a Binary, and it does work well if there are a lot of people that are recruited. When you recruit someone, the computer searches down for the next open slot, and positions them there. There are some plans that allow you to override the computer's selection if you want them to go a particular place in your downline.