MLM Comp Plans

Programs And Compensation Plans

Each Program Has 5 Main Compensation Components

1) The First Component Is The Tier (Think Levels) Structure. This can be set up as an MLM comp plan, to pay multiple levels deep (currently up to 5 levels maximum – you decide how many levels to pay). You can also set this to pay only on the first tier (level), which pays affiliates for direct sales only (sales from members they personally refer). Tier one only comp plans are not MLM. Payments can be normal (one time), or subscriptions.

2) The Second Component Is The Powerline (X-up) Structure. This can be set as a 1-up, 2-up, 3-up, 4-up, 5-up, etc.. (any number you wish). This can run alone, or in tandem with the tier structure, to create a unique hybrid comp plan. Payments can be normal (one time), or subscriptions.

3) The Third Component Is The Forced Pass Up. This can used with the tiers or powerlines, and should not be confused with powerline pass ups. This feature makes the most sense used as a 1×2 forced matrix.

4) The Fourth Component Is The Admin Fee. Payments can be normal (one time), or subscriptions.

5) The Fifth Component Is A Second Admin Fee. Payments can be normal (one time), or subscriptions. This fee can be assigned to a different admin profile, if desired.

Mix & Match Compensation Components And Payment Types & Prices

Each program can run any or all components, if so desired. So you could, for example, have a program with no admin fees, or a program that pays only the admin (useful for selling or upselling lead capture pages, traffic, advertising, etc..), or just a tier comp plan, and or just an x-up comp plan, paying the members only. The fees for each component can one time or subscription, and each can be set to any price you desire.

If you need more options, you can simply set up more programs to handle more payments, and even run them as one program.

Or, have a main program, and additional optional programs, selling traffic, lead capture pages, advertising, etc..

Mix & Match Subscription Payments / One Time Payments

You can set up an admin fee (and a set up fee) for each program. Either fee can be a one time, or a recurring (subscription) payment. It is quite common to have a one time set up fee, and an ongoing “subscription membership” or “hosting” fee.

Many top programs are using the subscription payments to admin feature, to create a nice residual income from the members. The time period for subscription payments is set in number of days. It could be set to 30 days, 90 days, 365 days etc.. (any number you wish). The most common setting is the monthly subscription (30 days).

The subscription period starts from the time the member pays and becomes Active.

The sponsor payments can also be one time or subscription, and you can mix and match either or these, with either admin payment type.

Admins Earn From Set Up Fees, Subscriptions (Dues, Hosting Fees), And Referrals

As the admin of the program you can make money 3 ways – with an admin fee, set up fee, and affiliate commissions (when appropriate).

The admin also earns sales commissions, just like any other member, for referrals they make into their own program, i.e. when members join and pay under you directly (or otherwise fall into your payline based on the program’s compensation plan), you get the affiliate commission(s), (including tier and powerline sales created by your personal downline, if either or both exist in the compensation plan).

The admin also collects excess money in certain situations, e.g. if the program pays down 5 levels deep, but the sale is only 3 levels away from the admin (thus 5 levels do not exist where the sale is being made), the admin will earn tier commissions for levels 3, 4, and 5, combined, (in addition to the admin and set up fees).

Anytime a member joins directly under the admin, the admin earns the entire program payment.

Powerline Hybrid Programs / Splitting Pass Up Sales With Your Sponsor

Typical 1-up and 2-up programs force members to pass up their first, or first 2 sales. The compensation plans these models provide is excellent, but the problem is all too often, members grow impatient, waiting on those “qualifying” sales, before they can be compensated themselves.

Automatic Web Software’s MLM / Powerlines Modular Multi Affiliate Program Network Creator is perfectly equipped to ease the pain of the powerline commission pass ups – by allowing the admin to create hybrid programs, that pay out commissions on all direct level 1 (personally referred) sales, in addition to the powerline commission. In this fashion, members don’t completely lose any sales, because they earn a fixed amount on all their direct sales, while they qualify for the x-up commission structure. They could even earn multi-levels deep if desired, in addition to a powerline.

If you are considering a powerline pay plan, it is a great idea to split that commission, and pay half of it on the first tier, as members earn faster, and can get into profit faster, which could equate to a more successful program. You might also then consider allowing unpaid members to earn only only direct (tier 1) sales.

Powerline Fast Start Bonuses / Reverse 1-up / Reverse 2-up / Reverse 3-up

Imagine the leveraging power of a 2-up, with the instant gratification of keeping the first sale(s) ALL for yourself.

Ever heard of a reverse 1-up, or reverse 2-up? If you have, odds are, our software is running it. Call it a reverse x-up system, powerlines turbo, jump start, or fast start bonuses, or anything you like. We simply call it:

Changing Positions Of Qualifying Sales In An X-up Powerline Commission Structure

Automatic Web Software allows the admin to change the positions of the qualifying sales. So, instead of a member passing up the 1st sale (if a 1-up), they might be required to pass up their second or third sale. In a 2-up, they might be passing up their 1st and 3rd sales, or perhaps their 2nd and 4th sales, or their 3rd and 4th sales. The combinations are endless.

Our powerful powerline software, allows all members to break even, and get into profit faster than ever before. And the sooner members get into profit, the more likely they are to remain in the program.

This feature actually makes bigger x-up powerlines feasible. Rarely seen is a 3-up, or higher, since even 2-up programs struggle while members grow impatient trying to qualify. Now, with the ability to change positions of the qualifying sales, the idea of 3-ups, 4-ups, or even 5-ups is not too far fetched.

For example an admin could run a 5 up, and define the powerline sales as sales 2,4,6,8,10 or 1,3,5,7,9, or even 3,4,7,8,11,12. Add to this the ability to pay on direct sales (with the tier commission component), and with the right numbers, you and your members can get generate tremendous leverage.

Removing The “Pay To Play” Requirement

The admin also has the option to allow unpaid members to join the program, and earn commissions on as many levels as the admin desires. This eliminates the standard “pay to play” requirement found in most programs.

If giving free members commissions, is important to you, you should consider using the tier structure as part of your compensation (or “comp plan”).

NOTE: You may elect to reward unpaid members on the tier commission structure, and or the powerline structure, by requiring them to pass up an extra sale (or more). The latter function allows unpaid members to earn a paid membership, after passing up a required sale or more.

Examples

An interesting comp plan, which eliminates pay to play, is to allow unpaid members to earn on tier 1 (direct sales only), while paid members can earn on tiers 1-5, or perhaps just tier 1, in addition to a 1-up or 2-up powerlines comp plan.

To put it another way, your comp plan pays on direct sales, as well as powerlines, and allows unpaid members to earn on those direct sales, but not the powerline sales. This eliminates “pay to play”, since unpaid members have the right to earn, without paying for it.

If you want to allow free members only, we can simply set up your site without a paid program. This can be useful for things like: creating a downline builder, simple genealogy tracking, program pre launches, where you want to create excitement, and have members recruiting and pre building their downlines, (but not actually have the program live until you decide it’s time), etc..

We will gladly assist you in creating your comp plan, if desired.

Quick Recap:

MLM Programs capability – create as many levels (programs), (or as few) as you like (up to 5 max).

X-up system, easily run a 1-up, 2-up, 3-up, or any number.

Reverse the x-up powerlines pass up order (or create any unique order).

Run a single tier, MLM with an x-up, or just one, or the other.

Charge an admin set up fee and or an ongoing membership hosting fee.