I recently saw some interesting numbers about a handful of Network Marketing compensation plans. The comparison took a business built in the suggested method with 5,000 points of volume. You will see that most companies do not pay very well on the front end (if at all). Feel free to do your own research evaluating the compensation plans listed here.
MonaVie
5,000 Points
Approximate Wholesale Cost of Product: $6,000-$12,000
Personal Order: $220
Bonus: $316*
Percentage Paid: 5.2%
Compensation Plan: Binary
(Bonus money is assuming that volume is perfectly balanced, in most cases it is not)
Efusjon
Approximate Wholesale Cost of Product: $5,000
Personal Order: $120
Bonus: $71.30*
Percentage Paid: 1.2%
Compensation Plan: Matrix
(Some associates carry multiple positions (up to 15) so the personal order might be significantly higher)
Arbonne
5,000 Points
Approximate Wholesale Cost of Product: $7,462
Personal Order: $149
Bonus: $196.61*
Percentage Paid: 2.6%
Compensation Plan: Stair-step Breakaway
Xango
5,000 Points
Approximate Wholesale Cost of Product: $6,000
Personal Order: $120/$240
Bonus: $300*
Percentage Paid: 5%
Compensation Plan: Straight Unilevel
EIRO
5,000 Points
Approximate Wholesale Cost of Product: $5,617
Personal Order: $140
Bonus: $1216.73**
Percentage Paid: 21.6%
Compensation Plan: Unilevel Hybrid
* Payout based on compensation plan perspective.
** Actual average payout to those with 5,000 points.
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Hi there,
I liked what this blog unveiled to the readers. It shows the disparity between the sales generated and the amount earned by distributors. Any serious networker should know these stats..
Sincerely,
Verniel Cutar
Posted by: Verniel Cutar -- MLM distributor | August 07, 2009 at 05:21 AM
fyi efusjon doesnt pay on "points"
i would like to know where you got your numbers? commision is 4.25% of sales and 1.25% for overlap. you get paid this rate for everyone in your matrix.
***The numbers are simple. $120 is the volume requirement. The pitch is "get 3", so if you get 3 x 120 that is $360. $360 x 4.25% = $15.30. Then you need another $4650 to make $5,000. $4650 x 1.25% = $58.
$58 + $15.30 = $71.30
You earn $71.30 for $5,000 in volume at Efusjon.***
Posted by: anon | August 07, 2009 at 11:46 AM
Thank you for this compensation comparison. It is one of the reasons that I got involved with EIRO Research.
Posted by: Jack Weinzierl | August 08, 2009 at 11:41 AM
This information is a must for anyone considering these companies. Thank you once again for doing the research.
Posted by: Tadd Bowditch | August 16, 2009 at 11:14 PM
Did anyone else have trouble following this post? Is the bonus the amount which one would recieve if one is in one of these MLM's?
The way I understood eFusjon's payment plan meant you would be paid 4.5% down a 3x15 matrix, which by my calculations is 21+ Million in your downline?
Posted by: Chris Davis | Best MLM | February 06, 2010 at 10:39 PM