Introduction
 

No matter what company you choose to be associated with, here are a couple of things to look for:
 

	Compensation Plan Companies offer different compensation plans. Make sure you understand your company's compensation plan.
	In business for over 5 years   Many good companies go out of business.  After investing time and hard work, you could loose your business when the company goes under.   There are companies out there that have inferior products, lots of hype, and get many people involved in the "hoopla" of making money, only to go under because their products are not worth having.
	Scientific research If you company is offering health or technical related products or services, make sure they offer information to back up their claims.
	Reputation Does your company have a solid reputation in their field?
	Guarantees Reputable companies always offer product guarantees.

Compensation Plans

When you experience the wonderful benefits of using these products, you will naturally want to share them with family and friends so that they too can enjoy better health and happiness. It's like seeing a good movie, you can't wait to tell your friends about it.

However, unlike referring a good movie, when you tell friends and family about the products/services of the products you represent, you will be compensated!

That is the beauty of MLM.  MLM is a product distribution network marketing system that allows it's customers to not only gain the benefits of the products, but to enjoy financial rewards from doing what they would do anyway, tell their friends and family about products that have changed their lives.

If you looking for anything from a way to pay for your own supplements and essential oils, to starting a new and rewarding career, this is a compensation plan in which you can make money in many different ways now!

Each company offers a different type of plan.  While the dictionary below can help you to understand those plans, it is very basic.  Be sure you get specific information from your company.

Dictionary of
Marketing Plan Terms

Auto Ship Program
 

Is an automatic monthly shipment of products of your choice.

These programs are designed for the convenience of both Customers and Distributors.

To enroll, you must make a product selection that will be automatically shipped each month.

Some companies allow you to change your product selection as well as place additional orders by telephone. Some only allow you to change your shipment at specified intervals such as every 3 months.

In all reputable companies, you may also cancel at any time.

Payments will be made via pre-approved automatic credit card debit or pre-approved check by  phone.

The advantages of the Auto Ship Program are automatic monthly PV qualification and a high Member retention rate.
 

Is a telephone system designed to help you build your business from the convenience of your home phone, from wherever you may be traveling, or even from a pay phone.

Through the IVR system, you may order products and/or sponsor new Distributors and Customers over telephone 24 hours a day, 7 days a week, by giving them your Personal Identification Number (PIN) to identify you as their Sponsor.
 

	Infinity Generation Bonus of is a percentage is paid on sales from a level through to a specified number of levels below the next Star Executive (Or whatever they call a specific level you have reached); thereafter, the second, third or fourth. Infinity Generation Bonus pays to seven levels below the next Star Executive or to infinity if a Star Executive is not found.
	Basically, it is a program that helps you to earn more money as your distributors sponsor, and their people sponsor, etc.

Override Referral Bonus

	Override Referral Bonus is paid to the up line of the Sponsor of the new Member who made the purchase. This percentage varies, based on the achievement level of the up line.
	For example: If you are an Executive, you are entitled to receive a XXX% Referral Bonus.
	If you have a personally sponsored Supervisor who is entitled to receive a XX% Referral Bonus and he/she personally sponsors a new distributor, then XX% will be paid to the Supervisor, and the balance of XX% will be paid to you as an Override Referral Bonus (example: 25% + 10% = 35%).

Referral Bonus

Here is where you can make money NOW! Each time you enroll a new member (either customer or distributor), you will earn a one time bonus of XX% to XX% of that New Member's first purchase, based on your Achievement Level.

Your check will usually be paid one time per month, however some companies issue check two times per months.

Also, some companies will charge a data processing fee for checks, statements and genealogy reports. 

This is not something to be concerned about.  Remember, you are being offered an opportunity to own a business for very little investment or overheads.  These fees should be considered as a business expense.
 

These deeper level commissions are a smaller percentage than those they earn for the people they personally sponsor.

Companies differ in their compensation levels. Some pay 5 levels deep, some pay 10 levels deep, some have bonuses, etc.

Further, some companies offer additional bonuses on new member's first purchases.
 

Are incorporated features, which assures you that unqualified Distributors and Customers in your down line organization do not occupy levels that would eliminate or reduce your commissions.

However, in many companies, Distributors and Customers who roll up will  not satisfy your achievement level requirements until the Member whose level they have rolled up to has had a specific number of consecutive months of inactivity and has been placed in the inactive computer file.
 

Are the members you have signed up, as well as those they signed up.

Example: You sign-up Mark, who signs up Sara, who signs up Leslie, etc. All these people are in your downline, and you will be paid commission on  their purchases according to your Level of  Achievement.
 

Are lists of the members in your downline.

Many companies will charge a data processing fee for genealogy reports. Since you cannot know all the people who are being signed up deep in your downline, it is a good idea to order one of these reports from time to time, depending upon the size of your personal organization.

Why? To keep in touch with them and to let them know about new products or changes within your company.

While you may have never met them, you make commissions on all the products these people buy and sell.  A monthly newsletter is always a good way to keep in touch.
 

Refers collectively to both Customers and Distributors.

Many companies offer a "Preferred Customer" plan as well as distributor plans, for those people who do not want to become distributors.  Customers pay a slightly higher price for products and no not receive commissions or bonuses. 

 Usually a customer may convert to a Distributor upon request and by satisfying Distributor enrollment requirements.
 

This is important to know.  In order to receive commissions and bonuses, most companies require that you place a minimum purchase each month by a certain date.

You want to know what this date is, and which types of payments allow you to make purchases before the monthly cut off date.

	Mail Orders
	An example of a mailed order would be:  Postmarked by the last day of the month and received by the sixth of the following month. They usually ask that you designate the month in which the order should be processed, or the order will be credited to the month in which it is received.
	Phone and Fax Orders
	Usually the last calendar day of the month, unless otherwise stipulated because of holidays, etc.

This is your member number that you use  to place orders or have new Members use when they sign-up. This number enables your company to track your commissions, product discounts, bonuses, downline members, etc.
 

Some companies give their distributors a further discount on their personal purchases, based on their Achievement Level, Auto Ship, or promotional.
 

Is the amount of "commissionable" product you personally purchase from the company in any given month.
 

	A Distributor who purchases a minimum of $XX per month is considered "Active" for receiving commissions. Distributors may also be paid bonuses on the achievement level for which they qualify each month.
	Pre-discounted volume amounts are usually used to determine your personal PV qualification.
	Most companies do not allow you to purchase product in the names of other Distributors/Customers for the purpose of qualifying them in order for you to obtain higher achievement level income. This is the textbook definition of inventory loading, which is not legal and violates most companies Policies and Procedures. Usually, distributors found engaging in this type of activity could be subject to termination without warning.

Many people retail their MLM profits.  There is usually a suggested markup, above your wholesale price
 

Some companies offer a Safety Auto Ship program that can be used only a few times per year (such as each calendar quarter of the year).

It is designed to protect Executives who miscalculate or accidentally forget to place their minimum monthly Personal Volume order (PV), and therefore would not qualify for achievement level commissions.

When signing up for this type of program,  you will be sent products (usually selected by the company) to ensure your qualification to received your monthly commission check.

Payment for these products are either debited from your account or charged to your credit card, and you will receive the appropriate commission

Also see Auto Ship
 

Still think Network Marketing is a
"Pie-In-The-Sky,
Pyramid" Scheme?

	Network Marketing, also known as Multi-Level Marketing, is a 40 year old industry
	Last year Network Marketing achieved more than twenty BILLION dollars (yes, BILLIONS!) in sales.
	There are approximately 500,000 millionaires in the United States. In the past two years, 20% achieved their millionaire status through Multi-Level Marketing!
	According to the Harvard Business Review and The Wall Street Journal, it is predicted that 70% of all consumer goods in the 1990's will be sold through Network Marketing programs.

For more information see Success & Freedom Manual, What is MLM?

These are the Business Opportunities I Recommend.

Then check out Success & Personal Freedom Guide for a complete guide to starting your new business!