Traditional MLM Compensation Pay Plan Doom For 2009?

It’s a fact our current state of economy is bad and it is apparent things will get a lot worse before they get better. Independent distributors hope to position themselves in front of this trend and what seems like an all out mass assault, distributors are pitching their programs and compensation plans as the end all solution to prosperity. Some may believe MLM is the answer, but will traditional MLM compensation pay plans work well in a bad economy?

Independent marketer Matthew Martin doesn’t think so. Matthew says “MLM compensation pay plans as we currently know them will not benefit people in our bad economy. The reasons for this are clear. Firstly people cannot afford to spend money on high priced distributor kits just for the opportunity to make money. They have better things to spend their money on like food or rent. It is to risky. Secondly the lag time between the time you get paid with most MLM compensation pay plans is to long. People need money up front and they need it now. They will not stick around long enough to grow their businesses overtime if it isn’t going payout well enough.”

It is true that many MLM companies require distributors to purchase what they call distributor kits in order to earn higher commissions. These distributor kits range in prices but are usually priced around $100 to $500. The idea is to then resell the products at retail. This could prove to be difficult to accomplish in a bad economy. People are more cautious than ever on what they’re spending money on and it may prove difficult convincing people to buy products they’ve never heard of no matter what the benefits may be.

The time frame from when you are paid with most traditional MLM compensation pay plans is 30 days after your first month in business. This can prove very stressful on people’s finances as most MLM companies require it’s distributors to purchase product on auto-ship. New distributors would be billed two additional times for products before they’ve received their first commission check and if they were not able to resell the products at retail themselves, they would be out significantly. Fast start bonuses may not be enough to keep people in business. You can expect a high rate or attrition during these tuff economic times.

Matthew believes he has the perfect opportunity to thrive in a bad economy. You can view his pitch at http://www.successedge.ws. He claims his program allows up front cash when products are sold and that his company guarantees it’s distributors will be in an earning position within 10 days of joining the program. His program sounds ideal but one should approach business opportunities with caution and understand most MLM compensation pay plans take time to pay off. If you are not prepared to wait months to produce a significant income, perhaps you would be better off looking for an alternative method for making a little extra cash.

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Jason Michalek

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