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Feb28
The Network Marketing Hybrid Compensation Plan

Are you stuck in 1959?

No, I'm not talking about your wardrobe, I'm talking about your MLM compensation plan. The stair-step breakaway plan was launched a little before 1959, but the most famous company to use this plan is probably Amway (now Quixtar in the U.S. until they change their name back to Amway in the months to come...maybe a story for another post).

Prom.JPGSeveral companies followed suit including Herbalife and Tupperware.  There is little doubt that the plan has lasted the test of time and many experts point to the fact that the largest companies in the Network Marketing industry have this type of plan. 

However, you will see very few Network Marketing companies launch today with a stair-step breakaway plan.  Not because they don't work, but because the plan is outdated and there are better options.

The most intriguing option I have seen today is what I would call the hybrid compensation plan, taking the best portions of different plans and rolling them into one plan.

Max International is a good example.  The Max International compensation plan takes the best of the binary compensation plan (without the cycles and binary creep usually associated with a binary plan) and merged it with a Unilevel compensation plan, largely looked upon as the fairest and most equitable plan in the industry.

Then the company took the typical Global Leadership Pool and flipped it around so that the newest associate who is growing will participate in 2% of the global sales. Usually this type of pool is given to those that make $20,000 to $100,000 a month. But imagine the change in belief level of a new associate if they make a check for $300 and then get an additional $200 Global Bonus Pool check.  That can be a life-changing experience for a new person.

Kudos to Max International for recognizing some significant trends in Network Marketing and forming their plan around those trends. 


1 Comments/Trackbacks




Excellent. I'm 100% agree to you Ty Tribble. The Hybrid compensation plan is the unmatched MLM plan at the moment. In Malaysia, a company called Uptrend Network Sdn. Bhd. (www.uptrend2u.com) were using Hybrid Plan too, and it works. During the 1st year of operation, it created 12 millionaires, and now more than 50 millionaires had born in Malaysia with Uptrend in just 4 years! This is a record figure in MLM industry in Malaysia. I knew a MLM company in Malaysia with 19 years of business operation here which also created 50 millionaires and were using the stair-step breakaway plan. 50 in 19 years, and 50 in 4 years.

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