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How MLM Home Based Business Companies Rip Off The Little Guy
Category: MLM
Have you ever really studied your mlm work from home opportunity compensation plan?
MLM home based business compensation plans have always been the work of smoke and mirrors. Have you ever seen compensation plans with the terms “weak leg”, “strong leg”, “leg balancing”, “group purchase volume” or “flushing volume”?
These are just a few of the terms that are commonly used by many mlm home based business companies to hide the fact that there is a large amount of commission money that will not be paid to the part-timer, the “little guy”. This is the terminology of the typical pay plan, where money is taken from the average person and funneled up to the “heavy hitters” or back to the mlm work from home opportunity company.
When the compensation plan is explained, the company will proudly state that they pay on a certain number of levels. The question is, do you actually earn commissions on all of those levels? What do you have to do to qualify to earn commissions?
In many cases, you’ll need a certain amount of “Group Purchase Volume”. Often times the amount needed to qualify is so large that it is only achieved by a very, very limited number of people. Those people are usually the full-time network marketers with huge downlines.
MLM work from home opportunity companies and the big hitters know very well that most part-time network marketers will never reach the GPV requirements and never qualify for commissions.
Does your company’s pay plan say that you must sponsor a specific number of people who must also sponsor a certain number of people and generate a certain amount of “Group Purchase Volume” themselves before you are eligible to earn commissions?
Again, the mlm work from home opportunity companies and the big hitters know very well that most part-time network marketers will never reach the GPV requirements and never qualify for commissions.
Many binary plans require what’s called “leg balancing”. If your legs or income lines are not balanced in the correct way, you do not earn commissions even if your group meets or exceeds the purchase volume requirements.
Part-time network marketers tend to struggle with these hard to achieve qualification requirements until they finally realize they will probably never qualify to earn commsisions. This where they realize that their dream of financial freedom may never be achieved. This is when they give up.
Eventually, even the full-timers begin to struggle. They realize that 90% of their downline are part-timers. As their downline members begin to drop out, it becomes harder for them to maintain the qualification requirements. Ultimately, this leads to the unavoidable conclusion, and the frustrated full-time network marketers eventually just give up and quit too.
The fact of the matter is, mlm home based business companies with group purchase volume requirements and complicated compensation plans are not fair to the part-time network marketer and they produce a very high number of dropouts.
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