Best MLM Compensation Plans In 2021
Would You Like To Know If Joining MLMs Are Worth It?
Do you want to learn more about the multi-level marketing MLM business opportunity?
Is it a scam or a legit opportunity?
This article will review and determine which MLM is the best out there.
You’ll learn which MLM is the right online business for you.
At the end, you’ll find answers to some of the most frequently asked questions regarding MLM and its compensation plans in general.
Table of Contents
MLM Review: What Is An MLM?
Is this yet another network marketing strategy that simply wants people to sign up, buy a product kit, and then recruit their family and friends to do the same?
The truth is that most MLMs teach people how to succeed as network marketers, but most members earn very little money promoting their products.
Can you really get rich off of a measly commission on products that you can get cheaper from Amazon?
If you want to really earn much money online, check out our #1 recommendation here.
But to give you a fair and honest review….
Some MLMs do offer beneficial ways for people to make money online and earn commissions.
In the end, you’ll find answers to some FAQs about network marketing as a whole.
And most importantly, you’ll see the exact system many others have used to build their own internet marketing business to over $40,000 a month in mostly passive income.
This system made them swear off Network Marketing for good, because it uses some of the same skills but in a much more powerful and profitable way!
For now, let’s check out MLMs and their Compensation Plans!
MLM Review: Are MLMs A Pyramid Scheme?
You’re probably reading this article because you want to earn money.
Because many people fall victim to MLM scams, this review is dedicated to various MLMs.
This article aims to clarify things:
- Is it worth it joining MLMs?
- Can you really get rich with MLMs?
- What is the best MLM compensation plan?
- Are all MLMs a pyramid scheme?
You’ll see various aspects of the organization that can help you determine if it’s best for you. And will give recommendations in the end — so you can truly make a wise decision.
Multi-Level Marketing Review: How Do MLMs Work?
So, how do MLMs work in order to make money?
Basically, multi-level marketing is a business model in which companies use sales representatives to bring their products to people.
These sales representatives typically work from home and purchase inventory to sell. The multi-level aspect is concerned with their ability to recruit and train people into their downline. Every person above them earns a commission when recruits generate sales volume and also recruit below them.
Earned income is made up of commissions on personal sales volume as well as a share of sales made by other reps you have recruited.
MLM Companies: What Are The Top 5 Companies In 2021?
Here are the top ten MLM companies in terms of revenue:
Who Is The Number 1 MLM Company?
For many years, AMWAY has been the world’s leading Multi-Level Marketing company. Amway was founded in 1959 and has since developed a variety of products that people have grown to love, including household cleaners, laundry detergents, weight loss shakes, beauty care, and more!
Compensation Plan: What Are The Various Types?
This will show the various types of MLM compensation plans before digging deeper into the best MLM compensation plan. The following are the four most common payment plan types:
Stairstep Breakaway MLM Plan
What do MLM companies do when they want to increase the sales of their distributors efficiently?
They use the Stairstep Breakaway Plan. When an affiliate achieves the highest rank, he and his team “break away” and are immediately added as a new tree under the admin.
Unilevel MLM Plan
The Unilevel compensation plan has a single business level in which all sponsored affiliates are automatically placed in the first level. Because there is no spillover, all recruiting work done by a distributor directly benefits him. Because it appears in all compensation plans, the Unilevel Plan is also known as the “universal plan.”
Matrix MLM Plan
This one is unique. The first two affiliates on level one are on the Matrix Plan, which has a fixed depth and width (front line). When the front line is full, the remaining affiliates are added to the tree’s next available slot (called spillover). MLM companies use the Matrix plan to increase group sales volume.
Binary MLM Plan
Binary compensation plans are made up of two legs (right and left) or subtrees for each affiliate. A binary tree is created when subtrees are added. Later on, as new recruits join, they flow onto the downlines or, better yet, the next business level — and so on to an unlimited number of levels. The Binary compensation plan is simple to understand, which helps in attracting more recruits.
Home Party Plan
This strategy increases product promotion by having affiliates invite people to a space (usually a home) and sell the products after a proper introduction and presentation.
This one is famous.
A “board” is a new tree that is created for specific members who meet certain criteria. Depending on the company’s policies, a compensation plan may have multiple boards. This plan is also known as the recycling matrix plan.
Try the Generation Plan for good retail income and downline commissions. This plan is similar to a Unilevel Plan, but it has different generation levels, each having an affiliate and his clients. This strategy appears to be ideal for e-commerce businesses.
Monoline MLM Plan
The Monoline Plan, also known as the “Linear Plan” or “Single Leg Plan,” is very simple and straightforward. It has a single-line structure with unlimited levels. Its simplicity of use makes it a popular and common choice for most businesses.
Best MLM Compensation Plans: What Factors Make For The BEST Plan?
Question: What is the best MLM Compensation Plan?
The truth is that there is no such thing as a perfect MLM Compensation Plan. Each has advantages and disadvantages. Do you believe the Mary Kay compensation plan will be successful at Avon? Or how about the Avon-Amway partnership? Certainly not!
The answer is to be the PERFECT FIT. Is the plan in line with the company culture and system — for example, direct selling, pricing, field training/culture, leadership development, and so on?
Each multi-level marketing company has a distinct approach to direct selling companies. Avon, Nu Skin, and Mary Kay all sell beauty products, but they are all unique in their own way.
As a result, the BEST and PERFECT FIT MLM companies select one of the primary compensation plan types, use it to develop stable revenue, and then use and align other plan types for growth. That being said, see the factors you should look for in a great compensation plan.
MLM Compensation Plan: Building Blocks For The Best Plan
1. Customer-Sales Focus
It is absolutely important for MLMs to focus on retail sales to customers who are not also MLM affiliates. Why? To reduce the possibility of the Federal Trade Commission conducting an investigation and taking action (FTC). Great MLM compensation plans place a high value on this.
2. Customer Commission Or Profit
Early rewards boost affiliates’ motivation. When they enroll a customer, they must earn a commission when orders are placed, which is normally between 20% and 25%. Companies that give bigger percentages for higher volumes, on the other hand, have had better results.
3. Ranks And Recognition
This is really motivating. In addition to commissions, a good compensation plan should provide ranks and recognition. Affiliates should receive a title for their rank as they go through the levels and additional compensation.
4. Rank Advancement Bonuses
The best MLM compensation plans provide a one-time fixed bonus when an affiliate advances in rank toward a well-defined career path. What an incentive this bonus gives to hardworking members. Advancement implies growth!
5. Strategic Compression
Strategic compression occurs when an upline affiliate is compensated as if there were no ineligible or inactive members in the tree. This way, despite the inactivity of others, hardworking affiliates are still encouraged.
6. Activity Requirements
Companies that want to increase sales should create activity requirements that reward desired behaviors. The objective is to boost sales, company profits, and affiliate retention.
7. Fast Start
The best MLM compensation plans get off to a fast and strong start. Companies have seen significant benefits in affiliate retention by rewarding new recruits.
8. Career Path
A good MLM compensation plan revolves around an affiliate’s career path. Making sure affiliates have a future in the company motivates them to work hard, stretch themselves to achieve more, and stay with the company. This path indicates how affiliates will sell, recruit, lead, and build their teams.
9. Mentoring And Team Building
Building and mentoring a strong team must be rewarded. Because the entire MLM organization exists due to the presence of each member, affiliates must be recognized for their contributions to team building.
10. Leadership Rewards
Company leaders are powerful influencers. As a result, they must be well compensated for coaching, mentoring, and growing their downline.
11. Recruiting Rewards
Recruitment activities must be rewarded in addition to sales volume compensation. However, due to compliance regulations, MLMs should not focus on recruitment. Nonetheless, these bonuses can serve as the icing on the cake.
How Do I Create An MLM Compensation Plan?
Here are 7 ways for developing a good compensation plan for your company:
1. Understand Your Company’s Objectives
Before you do anything else, examine the following key aspects of your company:
- Product type
- Product or service offered
- Corporate goals
- Cost to consumer ratio
- Ease of sales
- Distributor experience
- Room for incentives, etc.
2. Do Your Research
Before you enter the terrain, do some research on it. Try watching instructional videos on compensation plans. Alternatively, read extensively on relevant topics. These will help you get started.
3. Know Your Numbers
Before you begin compensating your affiliates, familiarize yourself with the numbers game. Understand your cost of goods, distributor price, retail sales price, and so on. If you know more, you will be more ready to answer questions.
4. Choose An MLM Compensation Plan
Next step, you can now choose from the various standard types of compensation plans that have been previously discussed.
5. Hire An MLM Marketing Agency
Are you feeling overwhelmed? Don’t worry. You can hire an MLM marketing agency to help you set goals, navigate obstacles, and set realistic expectations. They will assist you in determining the best compensation plans.
6. Consider An Incentive Program
There are times when your sales team really needs that extra boost. Why not consider a bonus or a profit-sharing plan? Taking care of your team is necessary for your success.
7. Be Ready To Make Changes
Despite your research and preparation, you will undoubtedly make mistakes. Always take time at the end of the year to assess. Examine your strategy again and, if necessary, make changes. Are you still on track? Is your team motivated?
Stick To What Works
Simply put, keep things simple. Yes, you can be unique, but don’t move too far from the standard. Learn from the mistakes of other multi-level marketing companies. It pays to be wise and to use the best compensation plans.
What Is The Highest Paying MLM Company?
AMWAY is the highest-paying multi-level marketing company at the present time.
Why is this so?
Take a look at the benefits they provide to affiliates:
Amway Benefits For Associates:
- Get discounts for products at distributor price
- Join in Loyalty Program (loyalty points can be redeemed as products)
- Points earned from purchases
Amway Commissions And Bonuses:
- Commission: 3%
- Retail profit:15% of sales
- Income: retail profit + commission
Which MLM Has The Best Compensation Plan?
There are NOT ONE, but 5 multi-level marketing companies that most believe have the best compensation plan. They are as follows:
Products: Lifestyle brands (Nutrifii, Puritii, and Nucerity)
Ariix uses the industry’s first multiline compensation plan, known as Activ8. Unlike matrix plans, this allows you to have an unlimited width and depth. Furthermore, you will receive a 50% payout — the highest commission structure available right now.
Finally, they use an algorithm that calculates cost-of-living-increases to support you over time adequately. Activ8 also allows members to sign up with one affiliate and then with a different team.
This encourages cross-line support and teamwork. Isn’t that cool?
Activ8 is, without a doubt, one of the best MLM compensation plans available right now.
Products: Biohacking products (fitness, nutrition, beauty)
MLM Compensation Plan: You can join in 2 ways —
- Preferred Customers – buy products wholesale
- Distributor – receieve commissions via sales and from your downline
The pay plan can be complicated at first. But if you sell well and are willing to stick with it for the long haul, you can make a good living.
You can earn income through these avenues:
- Retail sales
- Smart start bonus
- Launch bonus
- Royalty commission
- Generational matching bonus
- Elite bonus pool
- Rank achievement bonus
- Business center
3. Total Life Changes
Products: Lifestyle products (beauty, skincare, hygiene, essential oils)
MLM Compensation Plan: As soon as you join as a representative, you can start earning commissions on products sold. They use a hybrid binary plan. Here are some ways to make money:
- Retail profits and commissions
- Fast Start Bonus
- Binary pay
- Matching bonus
- Lifestyle bonus
Products: Lifestyle products (weight loss)
MLM Compensation Plan: As a brand promoter, you earn 20% of all client orders. You also get free products when customers sign up for the auto-ship program. You can earn up to 8% per level of your placement tree by taking the unilevel path. To top it all off, cash bonuses for luxury cars and vacations are available.
Products: Lifestyle products (renowned line of essential oils)
MLM Compensation Plan: Here are three ways to earn money:
- Retail profit
- Fast start bonus
- Power of 3 bonus
DoTerra does more than just pay well. They are also the world’s fastest-growing MLM!
Which Is The Fastest Growing MLM Company In The World?
Since its inception in 2008, DoTERRA has spread like wildfire. Within seven months, it had reached a million dollars in sales! DoTerra hit $1 million sales days in 2012, and by 2015, it had reached a whopping $1 billion in sales revenue!
However, it does not end there. DoTerra has grown to over 3 million “Wellness Advocates” affiliates, and by the end of 2016, they had gathered 30,000+ affiliates in a convention!
Can You Really Make Money With MLMs?
Yes, You can!
There’s a lot that comes along with Network Marketing (MLM) that many people struggle with.
In fact, check out our Top 5 Reason Why Most Network Marketers Fail.
Now, don’t get us wrong…
You can certainly make money with MLM, but if you’re gonna put in the amount of grueling work to do this business (which, trust me, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
The program that helped skyrocket many online businesses to over $40,000+ per month is so simple that making money really does become second nature.
Bottom Line: Is Joining MLMs Worth It?
So, is it worth it to join a multi-level marketing company with a good compensation plan, such as those mentioned here? As you can see, not all MLMs are scams. They sell legit products and pay affiliates on time.
And the companies mentioned in this review DO PAY A LOT OF MONEY.
Some say they wouldn’t mind recommending them to a friend, especially one who is serious about making money through the MLM structure.
Are these, however, the best business opportunities for YOU?
We want only the best for YOU. Our goal is to help you gain financial stability.
When it comes to building a business, you have plenty of options.
And even if you’re dead set on becoming an MLM marketer, you’ve got way better options.
Keep in mind; we don’t get paid to promote any of the programs we review. We think the MLM companies mentioned have a great business model, but you could end up leaving way too much money on the table.
What Is Our Top Recommendation For Making Money Online In 2021?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where MLMs falls short is in scalability.
There’s only so much time in a day and there’s only so many people you can reach to sell by yourself.
MLM companies know this!
Which is why they push so hard for you to recruit for your downline…you can’t get rich with it as a one man/woman show.
But what if you could make even more money off of little local websites without having to spend hundreds of dollars on overpriced products and a bunch of time recruiting people to sell under you?
With this digital real estate program, you can make recurring monthly income without constant sales to your friends and constant recruitment!
Sound too good to be true?
Of course it does!
But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a LOCAL website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
How Do You Get Paid And How Much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it digital real estate now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to worry about:
- Your upline getting paid before you
- Begging your friends and family to buy from you
- Recruiting people all the time
Remember with MLMs, You only get what’s left of the pie if you meet a monthly quota…
The course we recommend actually allows you to collect HUGE FLAT RATE DEALS. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group much better than MLMs in our opinion. This group is much more active.
Unlike MLMs, where you’re getting maybe $10 per sale, you could be getting 10-20X THAT.
A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike MLMs, more people have been able to walk away from their 9-5 job as well.
Digital real estate allows you to have total passive income with most of your day being spent WITH your friends, NOT selling to them.
Now, I know you probably have tons of questions…