Em. El. Em. You say that like it’s a bad thing. Multi Level Marketing (MLM) is a business strategy where the sellers are compensated for their sales and anyone they recruit.
Unilevel, Stair Step Breakaway, Binary, Matrix, Straight Line, Hybrid… Oh My! I do not intend to bore you with the nuances of each. I will mention the “cons” instead.
stair step breakaway (think Amway, Shaklee and Tupperware) – is one of the oldest in the industry that has a tendency towards inventory overload, and when one distributor “breaks away” you lose that volume (although not residual) and if you have to maintain a specific volume, you need to replace that break-away-distributor.
unilevel (Young Living, doTerra)- restricts overall commission amounts and each sponsor is basically in opposition with each other.
binary (Isagenix) – paid on your weakest leg.
matrix or forced matrix – may not get spillover and limits depth on which you are paid.
hybrids – are just that. Some form of combination. May have a binary structure but use a uni-level payout. These can be very complicated to grasp.
First. Pyramid schemes are illegal. A pyramid is just a distribution shape. Think of a school, the most un-business like profession, where there is one principal, perhaps two vice principals, then staff, faculty, teachers, etc. It takes on this pyramid shape.
Second, most people (like myself) purchase items and never consider selling them. They have no clue what the comp plan is for those same products. Fortunately, I love the Plexus products and their comp plan is a game changer.
Stay tuned….
