Evaluating a home business opportunity objectively is not always an easy task. Everyone's website and marketing materials are designed to highlight the positives and evade the potential negatives. This is neither good nor bad in itself; it's just a fact. After seriously looking at over 100 business opportunities, I developed a checklist of "Things to Know." These are broken down under the subheadings of Things To Learn About The Company, Things To Learn About The Products, Things To Learn About The Pay Plan, and Things To Learn About The Training. This article will cover the third category.
What you need to know about the pay plan
1. Since you are going to put hours of time and effort to build a successful business, be sure you are working toward a stable and steadily increasing residual income. There are two sources for this: from repeat sales to the end customer or from ongoing monthly fees (subscriptions, dues, etc.). If the pay plan has some kind of "breakaway" feature, you will continually be building your business as you continue to lose people who "break away" from you.
2. Run away from any kind of pay plan where you are required to "pass up" your recruits. Pass ups are called many different things ("qualifying sales," for instance), they all do the same thing. The first "X" number of people you recruit go to your sponsor, along with all of the business they may ever create. After that, your sponsor no longer gets paid your efforts, but has "X" new members to produce sales to be passed to him. Once you meet your pass up requirement, your sponsor has NO incentive to help you.
3. I am a fan of network marketing, but the system has one great flaw-- to make any serious money, it takes tens or hundreds or thousands of people in your downline. Most often, this is a result of the small profit margins available to you from the sale of products. If each sale or recruit earns you only pennies a month, the money does not pile up very quickly. Look for the kind of plan where you can make up to $900 or more per sale.
4. Look for a pay plan that you can move up through without harassing all of your friends and family. If you have already been through a few "can't miss" opportunities, you probably have already found this out. If you are looking for your first venture into the home business field, prepare for the fact that your friends and family won't be interested in what you are doing until you are making some money without them.
Once the company, products, and pay plan have met your requirements, move on to find out what you need to know about the training.
About the Author:
Looking for a good and reliable home business or mlm? Don't risk getting ripped off. Read Jack Beddall's informative series of articles about things you HAVE to know to evaluate any online opportunity.
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