benwesdorp
Forums Member
Joined: 21 Jan 2010
Posts: 7
|
#21 · Posted: 3 Dec 2010 10:43
Someone mentioned 5linx versus ACN so I wanted to comment on that. I've looked at bvoth compensation plans, and there are some important differences.
ACN has a unilevel plan, but with a generational override for the top 3 percenters. Most of the commission is paid out on levels 5, 6, and 7. However, you must have 40 points (about 20 personal customers) to qualify for levels 5, 6, and 7. Most people never get anywhere near 40 points, so the company owners keep most of the commission.
5linx uses a generational compensation plan. You still need to get customers and customer points in order to qualify for commissions. However, because of the nature of the plan, the breakage gets paid to your upline - the tops reps - rather than being kept by the company owners. This makes the 5linx plan more fair in my opinion.
The biggest challenge with both companies is the slim margins on telecom services. If you make an average of $1 per customer (sure, you can make more on some, but we're talking average here) then you need to build a downline of 10,000 customers to make $10,000/mo in residual income. Most companies pay at least $5 to $10 per customer, so you would only need 1,000 to 2,000 customers. So ACN and 5linx pay out a lot less per customer.
The biggest issue in my opinion is that most of the income in both of these plans comes from recruiting. I think they are both $500 to join, and you don't get anything of value in exchange when you sign up. The money eventually funds upline recruiting bonuses. So when the recruiting stops, the paychecks just about stop as well.
If you work the plans the right way, you can still make a lot of money. You need to be a super recruiter in my opinion. So just be aware of what it is that you need to do. If you are not a super recruiter, and prefer to build through customers, then you'll probably do better in a different type of compensation plan.
__________________
|
FreeCashMan
Forums Member
Joined: 31 Dec 2007
Posts: 1012
|
#22 · Posted: 3 Dec 2010 12:27
benwesdorp: The biggest challenge with both companies is the slim margins on telecom services. If you make an average of $1 per customer (sure, you can make more on some, but we're talking average here) then you need to build a downline of 10,000 customers to make $10,000/mo in residual income. Most companies pay at least $5 to $10 per customer, so you would only need 1,000 to 2,000 customers. So ACN and 5linx pay out a lot less per customer.
This is a historical issue for most network marketing opportunities. While I'm not sure that people are not getting anything for there start up, the bigger issue is that people starting don't have a true and fair chance to create a 4-5 figure monthly residual income in opportunities that will require thousands of people that could fill up a basketball arena in order to create a monthly residual income that could give them some financial flexibility and freedom.
That being said the issue is NOT with network marketing, as such is intertwined in all we do. And the issue is not even that deep level networks don't have a place, but facts are that if the average person in general has to establish a team of thousand to make a good monthly residual income with an opportunity they do not have a fair chance to succeed.
I realized this recently and have taken the measures to succeed in the wonderful world of network marketing by not by having to first establish a huge network-team in order to do so.
__________________
|
Page 2 of 2: «« 1 2
