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mamitasbc
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Joined: 26 Sep 2008
Posts: 4
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#1 · Posted: 29 Sep 2008 13:37
I have a simple question regarding MLM commission plans such as the one from Agel.
What generates more raw returns: 5 people recruiting 3 people per month OR 1 person recruiting 15 people per month? I am looking for a purely mathematical answer.
I am wondering if its allowed to hire people to generate more leads and recruits. Now, all things being equal and all costs aside... one account income vs 5 account income... does the single guy make more money than the other 5 combined if they end up with the same amount of new recruits per month? (induction costs aside).
Regardless of whether you think hiring people to get me recruits would work or not... is the advantage of reaching more status (and more bonuses) an edge that would make 5 people work together under one account? and if it is... is that allowed? legal?
Thanks.
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Casper
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Joined: 27 Aug 2007
Posts: 301
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#2 · Posted: 30 Sep 2008 03:45
In my opinion I think it's better if you work as a team particularly if you are just finding your feet in MLM's as then you can not only get support but also share each others ideas for finding new ways to market your business, However you must have a good team leader to do this it's good being apart of a team but having the right team leader to lead the team is also a key to your success.
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mountainmom5
Joined: 30 Aug 2007
Posts: 3044
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#3 · Posted: 30 Sep 2008 09:10
I don't know how the Agel plan works exactly but if it is mlm it is always better to have more people recruiting - just makes sense... 5 people recruit 3 this month those 15 each recruit 3 next month and then those 45...and so on.
But I guess it would still depend on how the pay plan is laid out and I am guessing someone that is doing that will pop by soon or you could go to the Agel forum if there still is one.. there used to be.
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mountainmom5
Joined: 30 Aug 2007
Posts: 3044
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#4 · Posted: 30 Sep 2008 09:14
I see you asked in the Agel forum a few days ago but it seems pretty quiet over there... wonder where everyone went to.
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opendomain
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Joined: 19 Aug 2007
Posts: 533
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#5 · Posted: 30 Sep 2008 16:36
Well there is no simple math answer to this without a payment plan laid out. The way you have it laid out if you make the same money then 15 is 15 regardless. Now if you have a limit to how far your downline can go then you'll want just as many up top as you have down low to increase your tree from the top down. Where as 1 person in your lvl 1 eliminates an entire level.
Ideally with MLM you want to teach your recruits how to recruit.
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mamitasbc
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Joined: 26 Sep 2008
Posts: 4
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#6 · Posted: 30 Sep 2008 19:10
I see what you mean, I would need someone in the Agel organization to answer.
They have car and office bonuses that depend on the commision volume that your 'lesser leg' generates, and also when that grows you become director-senior director-diamond-etc... and that allows you to get a bonus on your recruits, and on the people THEY recruited, and so on, depending on your status.
Here is the bonus i am speaking of... i dont want to put the whole plan in here, but this is the part where its important to reach status even if its with pooled efforts, to reach more levels of commission.
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mamitasbc
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Joined: 26 Sep 2008
Posts: 4
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#7 · Posted: 30 Sep 2008 19:12
http://img407.imageshack.us/img407/499/levelingbonusfd3.jpg
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alexa
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Joined: 8 Sep 2008
Posts: 95
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#8 · Posted: 1 Oct 2008 07:35
mamitasbc: does the single guy make more money than the other 5 combined if they end up with the same amount of new recruits per month?
The answer to that question depends on two things.
1. The compensation plan
2. The way they're "stacked"/"positioned"/"placed"
For Agel, it's going to be a terribly hard question to answer because the Agel compensation plan is so complicated (not saying that as a criticism, though some people think simple is best) that not many people understand all its long-term consequences. Including Agel distributors.
The long-term consequences of how you stack and build an MLM structure is terribly unpredictable and variable, like "chaos theory".
This is really the sort of question you can ask 5 experts and get 5 completely different answers. The truth is that nobody really knows.
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PMHayes
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Joined: 23 Apr 2008
Posts: 129
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#9 · Posted: 3 Oct 2008 06:18
I believe the answer is the same regardless of the compensaton plan or the product or the company or anything, for that matter. MLM is predicated upon a very simple principle. Bring in 2 - 3 people, teach them to bring in 2-3 people, teach them to bring in 2-3 people, etc. Duplicate this process and success is a guarantee. Fail to duplicate this process and failure is a guarantee. MLM is based upon the simple concept of building your business by building success in others. So, my answer is it's ALWAYS better to work as a team. It's better to earn a small percentage of hundreds or thousands of people than on %100 of your efforts.
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GavinStephenson
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Joined: 24 Apr 2008
Posts: 95
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#10 · Posted: 3 Oct 2008 10:17
Its harder to build a team MLM on your own is easy but unfair as your taking money from people .. thats why people think its all a scam.
When you help people become more successful you then become more successful..
Doing by yourself creates a bad name for you!
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lavendersluv
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Joined: 28 Jun 2005
Posts: 53
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#11 · Posted: 4 Oct 2008 22:10
Working as a team is better in IMO for one thing you the lone person will end up working more to get 15 or how ever many you end up with on your team. If you help 5 get started, who get 5 and they get 5 as mentioned you still end up with 15 on the team this way you are doing less work which allows you to focus on other areas of your business. thanks
Michelle
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keepitlegit8
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Joined: 6 Oct 2008
Posts: 1
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#12 · Posted: 6 Oct 2008 14:55
I see where everyone is coming from in arguing that it MAY be better to work alone as you'd be making more/person in residual from their activity if they're your DIRECT referral versus further down; but personally I don't feel as though it's even debatable when you look at the big picture, for a few reasons:
1) Without a team, you lose out on the all-important notion of LEVERAGE! That's one of the primary aims of any successful business, and with the exception of a system that only rewards you for DIRECT referrals, should be a KEY focus for anyone, as you can achieve exponential growth that way. Sure, you may not be making as much from every person's activity if they're only in say your third level as opposed to your first; but you're making SOMETHING... which is more than you'd be making if you had to do it all alone. You may never have come across that person; or you MAY have, only to be rejected by them because you failed to be able to establish that level of trust necessary to get them to sign up. When you have a TEAM in place, you have an ARMY of sorts... strength of numbers, which is HUGE!
2) THIS is the one I think most tend to overlook..... the more people hear about something, especially from multiple sources, the more credible it begins to look in their eyes! Having a team of others out there under you talking about the same thing will create a buzz and spread the word a LOT more quickly than if you tried to go it alone. While it's certainly true that you'd make more off of having everyone signed up directly under you, think of how much more DIFFICULT it'd be to establish the credibility of the thing you were promoting if you were the ONLY one touting its benefits!
Here's an easy example: Look at a company look Avon or Mary Kaye; at Target or Wal-Mart! Those companies were ALL around for QUITE some time and had been established on a certain level. However, it wasn't until they created a buzz in the mainstream that they REALLY started to take off.
Sure, the original Avon lady would indeed be more rich than she has wound up (if she's still alive... I don't really know the actual history of the company.. just making an example of it lol) had she be able to sell directly to each and every person who's become a customer over the years. But there's clearly no way she could have covered even an entire STATE on her own, let alone the whole nation. Sure, she wound up outsourcing and had to pay comissions to those who signed up with her to sell... but look at what happened.... her company grew exponentially as more and more people came on board; she was able to hit a larger and larger customer base and over time her bank account got larger, her direct selling eliminated and she was able to focus on taking additional steps to grow the business in new directions. She had created the all-important LEVERAGE... and though we can't SEE it in the same sense with online MLMs, that is EXACTLY what CAN happen for each of us with a TEAM in place too.
I'd MUCH rather focus my time on teaching 10 people how to do what I do after bringing them into the fold than trying to be greedy and recruit 10,000 through my own efforts alone.
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hotconcept
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Joined: 10 Oct 2008
Posts: 23
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#13 · Posted: 16 Oct 2008 16:15 · Edited by: hotconcept
PMHayes: I believe the answer is the same regardless of the compensaton plan or the product or the company or anything, for that matter. MLM is predicated upon a very simple principle. Bring in 2 - 3 people, teach them to bring in 2-3 people, teach them to bring in 2-3 people, etc. Duplicate this process and success is a guarantee. Fail to duplicate this process and failure is a guarantee. MLM is based upon the simple concept of building your business by building success in others. So, my answer is it's ALWAYS better to work as a team. It's better to earn a small percentage of hundreds or thousands of people than on %100 of your efforts.
I couldn't agree more than what you have posted. Working as a team in MLM is essential but to duplicate is crucial for success also.
Great post PMHayes and best of success in your online biz.
best regards
Guy
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Wyoming David
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Joined: 30 Oct 2008
Posts: 9
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#14 · Posted: 3 Nov 2008 12:00
In my mind the whole advantage/leverage is that of teamwork.
If you can succeed,that is good, but if you can show others how to succeed you will succeed beyond your wildest dreams.
D
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seeyalater72
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Joined: 5 Mar 2008
Posts: 197
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#15 · Posted: 3 Nov 2008 16:54
The goal of every online business person should be to build residual income. The very essence of residual income is employing the efforts of others to make money. So teamwork or team building is critical.
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jaynen
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Joined: 27 Nov 2008
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#16 · Posted: 29 Nov 2008 15:06
Funny question.
With most of the compensation plans I've seen, there is most likely more short-term profitability in hiring people to process your front-line sales. There are a few questions that come into play however:
1) Can your product/service be successfully sold cold market? This is based on industry, company credibility, and market competitiveness.
2) Do you get charge-backs for cancellations within a given time-frame? Cold market buyers have no loyalty to you and may cancel a month in.
3) Is the comp plan built for the residual or the bonus income?
See, some industries are meant to be delivered person to person; i.e. insurance. You can sell cold market, but then your credibility and even more important market competitiveness need to be abnormally superior; which most network marketing companies are going to be unable to accomplish due to resale relationships and commissions.
The BEST network marketing companies are just a bit less expensive, a bit to a good amount better quality, but the credibility is not very strong that's why the relationship between the distributor and the customer are so important.
Big ticket, one-time purchase, type deals can definitely make more money hiring people with no vision (9 - 5er's who think you're doing a "pyramid" or don't want to spend any money out of pocket). We had a couple employees with Nouveau Riche; they made $10 an hour, while we made about $500 - 1000. It sounds mean, but these are the same people who if we brough them in the office for a "business opportunity" would bitch and moan about all the stupid stuff people against network marketing always do.
I would have to say that real network marketing companies, with a good compensation plan, and that are based on residual income wouldn't have to prevent you from hiring people by contract, it simply wouldn't be profitable. I couldn't see hiring people for my ACN business past the extent of my assistant, a webmaster, and maybe maybe maybe someone to work on business accounts; if I could keep an employee doing sales past six months to a year though, I would worry about how bright that person was. The only other way I could see hiring employees is if I were going to stop actively working the business; then I would hire those same people, but maybe add someone to look at my new distributors to make sure they were getting support.
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- Jaynen
It's not what you do, not too much of how you do it, more so the support/leadership you have, and mostly your attitude and drive to succeed.
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colibri
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Joined: 12 Sep 2008
Posts: 21
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#17 · Posted: 13 Feb 2009 14:55
As the famous first Rockefeller said, 'I would rather make 1% of my income from the efforts of each of 100 people than make 100% of my income from my efforts alone'.
I would say you are better in the long run to build a team. It is likely true that you would make less money AT FIRST, but the team action will soon surpass what you could do on your own (burning yourself out in the process from overwork).
Look for a team and passive income, regardless of the pay plan.
Ron
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MoneysLikeWater
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Joined: 20 Feb 2009
Posts: 3
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#18 · Posted: 21 Feb 2009 00:03
Hey mamita,
Good question!
First, I'd say having more people working on your team is always better. I'll sum it up in one word - Leverage.
I'd rather have an army out there doing things than trying to do it all myself. Just think if you wanted to knock on a million doors to tell them about your opportunity.
that might take you a life time. Not if you had a million people though.
As for your other topic, hiring people for lead generation.
I'd say that is the way the big guys do it.
Outsourcing is always the way to scale it way up.
Just think about McDonalds versus a mom and pops burger shop.
McDonalds chain, Mom and pops, they're killing themselves working long hard hours and maybe just scraping by.
I hope I helped.
Lonnie
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gowriter
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Joined: 16 Nov 2008
Posts: 176
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#19 · Posted: 11 Mar 2009 21:32
It's better as a team, but it also depends on what your MLM offers. Some MLMs have an advertising co-op that can help get your referral link seen.
I know that the smaller MLMs like 10K Matrix do that.
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ponnyfiggs
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Joined: 26 Feb 2009
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#20 · Posted: 15 Mar 2009 08:09
I will say u shud have a team of friends as u can always ask them to be ur follower and add them under u . Also more ppls being together can help attract more ppls nd market to wide number of ppls thnx .
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