There are typically 5 compensation plans which many others would be based on any or any combinations of these plans. Some may claim theirs is a hybrid but it is still based on these fundamental structures.

1.Unilevel Compensation Plans can be one of the hottest plans out there to some, but not as appealing to others. Typically, unilevel plans are the simplest to understand at a glance. These plans allows distributors to sponsor as many individuals as they want under them that go deep and wide, forming a nice little pyramid you can call your own.

It might sound good, but the truth is it will cost you a lot to keep this organization you are building. The key is the percentage of compensation you receive for work you put in.

When considering a unilevel plan, take the time to look at the details, then do the math. These plans usually mean a distributor needs to have a ton of people in their pyramid in order to make some serious money.

2.Binaries are confusing, but from experience we can tell you they work. Taking the time to know what makes these type plans work for you will be the tool for you to make some real money.

Binaries work with two's. Two frontlines, then two who get two, then two more, etc. Binaries may look like pyramids, yet they are not. They are very involved. To know them is to put you ahead of the game.

3. Australian plans are scary. They may look good on paper, but they spell doom. Many veteran industry experts of MLM believe these plans to be 100% failures. Enough said.

4. Matrix plans another type that looks simple, but is loaded with pitfalls if you don't keep your eyes on the road ahead. The current matrix models build down to infinity, it the abstract. With matrix plans, you fill a cell, then start over. When considering this type of plan, get more detailed information about how and why these plans are unsettling.

5. Compressed plans pay out less, but they give you a real shot at making serious money. More MLM companies are going over to compressed plans. They are safe and fair minded to the distributors. They are structured so the newer distributor that does not have a large downline can make money faster.

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