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The Importance of Compensation Plans in Direct Selling

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Epixel MLM Software
The Importance of Compensation Plans in Direct Selling

Direct selling companies have the option of choosing from a number of different MLM compensation plans. There are many things to consider when choosing a plan, such as the time commitment and your company's target market. The right compensation plan can help make your direct selling business more successful. The compensation plan is the heart of any direct selling company. The plan defines how a distributor can earn money from their own sales and from sponsoring new distributors. There are many different plans available but not all work well for every type of organization, so it is important to do research before making any decisions about your MLM compensation. Let us understand a little about the binary MLM compensation plan.


The direct selling industry has evolved to offer a variety of compensation plans. Binary MLM plan is one of the most accepted because it creates a win-win situation for both members and company. Why is binary one of the most accepted compensation plans in direct selling? The answer lies in its structure, which offers equal opportunity for success for all members involved. In a binary MLM plan, distributors receive commissions for product sales and can also earn bonuses based on recruiting new members into their downline. The beauty of this system is that there are no limits to how many people you can recruit and everyone who participates has an equal opportunity to succeed. 


With the system of a limited two frontlines per distributors, binary MLM plan offers unlimited growth in depth. The two frontlines are called the right and left legs respectively. Commissions are usually paid on the basis of the weaker leg sales, thus driving teamwork among the distributors to balance the sales volume between legs. Understand the compensation plans and make the right choice for your MLM business. 



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