MLM Salary Plan
What is it?
In current times Salary Plan is one of the most known and popular plan in network marketing. Salary plan people can earn a fixed amount of money for a particular time period based on the amount they invested. In different region salary plan named differently. Like this plan also called ROI (Return of interest) plan, investment plan. Some also called it a compensation plan. Whatever people call it basic plan works same way in every place.
How does it work?
Salary plan works on two simple factors – investment and time. Investment is the amount of money you are investing and time is decided by the company or individual according to the amount. It is a simple concept of investing and gets interested. Then how it becomes network marketing? Smart business mined people attach this simple technique with some multilevel marketing plan. For example – someone wants to buy pizza hut franchise. But he needs 10 lacks cash deposit for it and also he needs to pay the company a profit of 5 lacks yearly.
Now he doesn’t have that amount of money. So he convince some people to invest on this business for a year with a condition, they will have to find new investors. Now he started that business without much investment on his own, but he keeps getting customers for his pizza hut and earns profit. Now he will distribute that profit among his team investors. And team members also earn extra commission by joining new associates. If he set the time period one year, then by the end of one year he will be able to earn that yearly profit money for that franchise and also return his investors’ money with a huge interest as well. Same concept can also apply for a business. In that case investment, interest and commission rate will be smaller.
How to maintain the commission?
Commission can be set weekly, by-weekly or monthly basis. You can release commission money according to time period as well. If they are investing for a long time then commission can release every month. If investing for a short period of time then it can be release on weekly basis. This still mainly depends on the plan and the individual or the company.
Who can go for this?
If a person, have a business idea to fetch quick return in handsome value by business, for example – share trading, crypto trading, land, gold etc, can make a good profit within a short period of time, he can start the business with this plan. It can help to establish his own business and his investors can earn a fixed amount without doing much hard work.
There are many different kinds of people in the market who are doing MLM business. Some are a genuine businessman who wants to build a proper platform with long term business plan. On the other hand, there are people, who want to gain profit with a short period of time. So the successful outcome of the salary plan can also vary from person to person. What their vision and how much effort and time they are putting in that business. We are publishing this article based on our experience. Through this article, we are not implying that it is 100% full proof plan. For any kind of inconvenience, any third party service provider is not responsible.
There are many different kinds of people in the market who are doing MLM business. Some are a genuine businessman who wants to build a proper platform with long term business plan. On the other hand, there are people, who want to gain profit with a short period of time.
So the successful outcome of the salary plan can also vary from person to person. What their vision and how much effort and time they are putting in that business. We are publishing this article based on our experience. Through this article, we are not implying that it is 100% full proof plan. For any kind of inconvenience, any third party service provider is not responsible.
I want to invest in salary plan but don’t know the genuineness and legality. Please give me the right direction.