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compensation plan

Compensation Plan Basics Page 2

Your Sponsor

This is the individual who introduced you to the network marketing company that you joined or are looking to join. They were the ones that initially asked you if you were interested in starting your own business, gave you information to review, explained the business opportunity to you and registered you with the network marketing company.

Your sponsor may be an individual who started with the company, or may even be a person who literally started just a few days earlier than you. One thing to watch for here is how was the business information presented to you. Did your sponsor have to give you the whole presentation or was there a system used to share the information about the company, such that anyone could do it?

The person who is your sponsor will become the individual that you will work with on a daily basis. While you are responsible for your own action and commitment to your business, your sponsor is responsible for you to ensure you know all the systems and trainings that you have available to you. They should be willing to work with you on a one-on-one basis until you have the experience you need to do it on your own.

Distributors and Associates

After you have done your due diligence about your potential Network Marketing company, and you agree to get started, this is what you will be called with regards to the contract. The term distributor, or associates, or members are all used interchangeably. You will see the term that is used by your Network Marketing company based on the contract that you signed, whether that is the old fashioned way or digitally, when you got started.

Business Center

Compensation Plan Organization

When you start your Network Marketing business, you will be in business for yourself. When you get started the position that you will create will be part of the entire distributor base. For most companies they will call this position that you hold your Business Center. This is your business and once you meet the qualifications of the compensation plan, you will start to get paid through your Business Center.

Your Business Center, as can be seen by the image above, will include you and all the distributors / associates that are in your organization. The larger the number of distributors / associates that you have in your organization, the more volume your Business Center will generate, and therefore the more money you will make based on the compensation plan.

More information on Compensation Plans, go to . . . Page 3 >>
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