![]() Although companies can restrict the number of recruits that distributors enroll under them, a unilevel structure places no limits on width. Read on to learn how companies with the following multilevel marketing compensation plans calculate commission.Īrguably the simplest compensation structure, unilevel plans revolve around a first tier of distributors. The amounts of these commissions will depend on the compensation structure of the multilevel marketing firm. However, if distributors' money comes from sales to the public, the company has a multilevel marketing (MLM) plan, which is legal.Īlong with bonuses, the commissions that independent contractors receive for their sales are their compensation. If the money distributors make comes from how many people they recruit and their sales to those recruits, the operation is likely illegitimate. The illegal form of this marketing plan is known as a pyramid scheme. These representatives then make commission on their sales as well as the sales of people they recruit. Also known as network marketing, multilevel marketing involves distributors selling the public products directly in most cases. If you've ever suffered the nuisance of the Avon lady at your door or a vacuum salesman pushing his wares in your neighborhood, you've encountered multilevel marketing. How to Calculate Multilevel Marketing Commissions ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |