The "Magic Number" In MLM Compensation Plans

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The "Magic Number" In MLM Compensation Plans

Author: Devon Brown | Total views: 37 | Word Count: 594 | Category: Business | Date: Dec 29th 2006

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I've spoken before about compensation plans and how they don't matter
(at least as far as recruiting is concerned).

Now if you haven't read my article on "why compensation plans dont really matter",
just understand that my basic point is this:

Getting someone to understand the intricacies of a crazy comp plan
(with BV, PV, override bonuses, runaway legs, recycling this, breakaway that, etc...)
is not how we get this seemingly impossible task of duplication to occur.

So I wanted to take a second an talk about what I like to call the "Magic Number".

You see, with regard to any network marketing company's compensation plan, there ends
up being a specific number of people you should ideally personally sponsor...that's the
magic number.

If everyone were to recruit the 'magic number' of people then you would max out the
comp plan and everything would be hunky dory!

Examples:
Note: If you don't understand the specific comp plans (or why I'm saying that these
particular numbers are the 'magic numbers' associated with the comp plan) don't worry
about it...

A 2by4 Forced Matrix
The Magic Number is 2

A 1-up
The Magic Number is 2

A 2-up
The Magic Number is 3

A 4by3 Recycling Matrix
The Magic Number is 4

A 3by12 Matrix
The Magic Number is 3

Now, these are some very simple examples. Some company specific
comp plans are a little more intricate and it would take me 26 pages of writing to figure
out and explain what the 'magic number' would be.

Example:
I know of one company that has a Binary Compensation Structure but
the Magic number is 12 (when it reality it should be 2).

Regardless...The point is this. If we are ever to see success
in mlm then we must K.I.S.S (Keep It Super Simple)

I'm not saying that you shouldn't learn your company's comp plan.
I'm just saying that EVERYONE needs to know their 'Magic Number' more than they need
to understand all of the crazy dynamics of the compensation structure.

Isn't it much easier to say....

"Hey Tom, your job is to get 4 people, and if you do this
(assuming 4 get 4 who get 4 etc...) you'll be making $5,000 a month "

than it is to say

"Hey Tom, we have a 4by5 forced matrix with rollup and compression
and infinity override bonuses down to the 16th level of 3%. A full
matrix at 75BV yields you a check for $5000 a month"

So What's my point...Simply this...

Simplify your life and find out your Magic Number.
That's your goal and the goal of everyone in any mlm company.
If we can all focus on hitting our 'Magic Number' we all see success.

Note: I'm not saying once you hit the Magic Number then Stop recruiting or sponsoring.
I'm just saying that the 'Magic Number' is the simplified way of explaining a cooky
compensation plan.

Also keep in mind that if your company has a complex compensation
plan and you don't understand it, you may have to do some digging
or talking to your upline to find out the answer to the following
question:

"All B.S. Aside, how many people should everyone get in order
for all of us to make a bunch of money and max out our comapnys compensation plan"

www.RenegadeMlmSuccess.com

Article Source: ArticleSoft.com

About the Author

Devon Brown (a.k.a The Success Renegade) Is one of the fastest up and coming superstars in the Network Marketing Industry.Devon is showing the Network Marketing world why the MLM companies and Gurus have it all wrong! Learn more about Devon and take advantage of a FREE "No BS" Audio by visiting: www.RenegadeMlmSuccess.com

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I've spoken before about compensation plans and how they don't matter 
(at least as far as recruiting is concerned). 
 
Now if you haven't read my article on "why compensation plans dont really matter", 
just understand that my basic point is this: 
 
Getting someone to understand the intricacies of a crazy comp plan 
(with BV, PV, override bonuses, runaway legs, recycling this, breakaway that, etc...) 
is not how we get this seemingly impossible task of duplication to occur. 
 
So I wanted to take a second an talk about what I like to call the "Magic Number". 
 
You see, with regard to any network marketing company's compensation plan, there ends 
up being a specific number of people you should ideally personally sponsor...that's the 
magic number. 
 
If everyone were to recruit the 'magic number' of people then you would max out the 
comp plan and everything would be hunky dory! 
 
Examples: 
Note: If you don't understand the specific comp plans (or why I'm saying that these 
particular numbers are the 'magic numbers' associated with the comp plan) don't worry 
about it... 
 
A 2by4 Forced Matrix 
The Magic Number is 2 
 
A 1-up 
The Magic Number is 2 
 
A 2-up 
The Magic Number is 3 
 
A 4by3 Recycling Matrix 
The Magic Number is 4 
 
A 3by12 Matrix 
The Magic Number is 3 
 
Now, these are some very simple examples. Some company specific 
comp plans are a little more intricate and it would take me 26 pages of writing to figure 
out and explain what the 'magic number' would be. 
 
Example: 
I know of one company that has a Binary Compensation Structure but 
the Magic number is 12 (when it reality it should be 2). 
 
Regardless...The point is this. If we are ever to see success 
in mlm then we must K.I.S.S (Keep It Super Simple) 
 
I'm not saying that you shouldn't learn your company's comp plan. 
I'm just saying that EVERYONE needs to know their 'Magic Number' more than they need 
to understand all of the crazy dynamics of the compensation structure. 
 
Isn't it much easier to say.... 
 
"Hey Tom, your job is to get 4 people, and if you do this 
(assuming 4 get 4 who get 4 etc...) you'll be making $5,000 a month " 
 
than it is to say 
 
"Hey Tom, we have a 4by5 forced matrix with rollup and compression 
and infinity override bonuses down to the 16th level of 3%. A full 
matrix at 75BV yields you a check for $5000 a month" 
 
So What's my point...Simply this... 
 
Simplify your life and find out your Magic Number. 
That's your goal and the goal of everyone in any mlm company. 
If we can all focus on hitting our 'Magic Number' we all see success. 
 
Note: I'm not saying once you hit the Magic Number then Stop recruiting or sponsoring. 
I'm just saying that the 'Magic Number' is the simplified way of explaining a cooky 
compensation plan. 
 
Also keep in mind that if your company has a complex compensation 
plan and you don't understand it, you may have to do some digging 
or talking to your upline to find out the answer to the following 
question: 
 
"All B.S. Aside, how many people should everyone get in order 
for all of us to make a bunch of money and max out our comapnys compensation plan" 
<a href="http://www.RenegadeMlmSuccess.com"> 
www.RenegadeMlmSuccess.com</a> Article Source: <a href="http://www.articlesoft.com" target="_blank">ArticleSoft.com</a> About the Author: Devon Brown (a.k.a The Success Renegade) Is one of the fastest up and coming superstars 
in the Network Marketing Industry.Devon is showing the Network Marketing world 
why the MLM companies and Gurus have it all wrong! Learn more about Devon and take advantage of a FREE "No BS" Audio by visiting:<a href="http://www.RenegadeMlmSuccess.com"> 
www.RenegadeMlmSuccess.com</a>

Tags: mlm, network marketing, mlm success, network marketing success, mlm article, mlm training