Is It Really The Best Pay Plan?
I see this hyped up statement so often it becomes rather boring and of course it is not unusual to get more than one program in the same mail with the same claim. I have only ever seen it really in relation to MLM Multilevel Marketing Networking Marketing or Matrix structured programs so will consider it in that light although many comments are valid for any such claim.
Cut through the hype and use some business basic thinking. Have you any idea how many programs there are on the internet today? My search engine produced 307 million “business opportunity” and 159 million “pay plan” results. Searches for
other options like MLM and matrix produce equally large numbers of results.
Can you really believe that they have had somebody research and compare all those results so they can develop the “best pay plan on the internet”. It would not be possible anyway by the time the analysis of existing opportunities was completed there would be a whole lot of new ones launched that needed to be examined as well and so the process would continue.
A business basic they are completely overlooking is credibility. If some of their claims are not believable then most people will view all they claim or offer with distrust.
Even if they had been able to do the research and comparison who decides what is the best pay plan? There are bound to be different views on the subject of “best pay plan” and here are some examples of what I mean:
Everybody likes to get into profit as early as possible and so any pay plan that achieves that could be considered “best”. Perhaps one that returns profit after three members have joined and so a significant part of the payment over one third goes to the immediate upline.
But there are those who would like the opportunity to make a large income and that is achieved from receiving many payments. Have a look at this theoretical example:
The matrix is three wide and four deep with payouts at 40 30 20 and 10 and the monthly payment is 20.
Here are the results of a full matrix comparing the top persons income for a structure that goes from high to low and the reverse:
Level Number Top income H to L Top income L to H
1 3 8 24 2 6
2 9 6 54 4 36
3 27 4 108 6 162
4 81 2 162 8 648
Total Income 348 852
You can clearly see that the “best” plan will depend on your personal view point; do you want early profits or big profits?
The “best plan” is a subjective view and such claims should never be made even if the research had been done! Unless of course a clear definition of what is best is included.
Applying some business basic thinking to all the claims is a great help in assessing the credibility of the promoters.
About the writer: Ken Briggs is a qualified accountant with many years experience in business and over 12 years experience in online businesses. His book “Business Basics for the Internet” was written to assist people in applying business basics to online business opportunities and from the knowledge gained be able to identify the programs that are doomed to fail for most and those that have a high probability of success for participants. This makes it The book sponsors do not want you to read. http://businessbasicsinternet.com
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