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Mastering The Plan Mechanics
Mastering The Plan Mechanics
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Mastering The Plan Mechanics
Not Just About Arrows and Circles...5
Know Yourself, Know Your ‘Enemy’...6
Using the Knowledge Effectively...8
Unilevel: Unlimited Width and Depth...9
Stairstep: Climbing the ladder of Success...13
¬¬Binary: Two at a Time...19
Two-up: The Art of Giving Away...24
Matrix: Reloaded...29
In Closing...32
Recommended Resources + Bonuses...33
Using the Knowledge Effectively
Each plan will be explained in a few sub-headings.
(1) Plan Structure
There is a diagram associated with each plan. This will explain how the commissions are paid out, as well as the typical network building strategies. I will also illustrate typically what type of companies use this kind of plan structure.
(2) Advantages
Plan advantages are very crucial to build a long term business. If you haven’t decided which network marketing company to join, or you are thinking of moving to another company (for whatever reasons), this information will give you a very good idea how to build your downline, especially if you are moving your entire network to another company.
(3) Disadvantages
Not all plans are created equal. There will always be aspects where some plans excel where others don’t. Furthermore, as mentioned in the chapter above, you know where the weak points of other network marketing plans lie and you can use them to your advantage.
(4) Placement Strategies
Placement of your downline is crucial. Most of the time, this strategy also applies to companies which allow you to have multiple accounts (usually husband and wife, boyfriend and girlfriend, or brothers and sisters.)
NOTE: All plans illustrated here are presented in the rawest form and for you to understand and dissect the basic concepts. The information here is designed to guide only, not as a law. There are many hybrids and variations available in the market today. What I write here is the basic, fundamental structure of where most plans derive their ideas from. Check with your upline or company to be 100% PRECISE about your company’s plan.
Unilevel: Unlimited Width and Depth
The Unilevel plan is one of the oldest types of plans in the market. It basically allows you to sponsor as many people as you want at your level. According to the diagram, there are six people on your ‘frontline’ and more can be sponsored as you like. Your downlines can also sponsor as deep as they want until infinity levels with no restrictions.
In a Unilevel, the commissions are usually fixed percentages of generational overrides. This means that whatever commission paid to you as generated by your downline is determined by how deep they are in your organization. As you can see from the diagram above, the ones where the six circles are at the front line, is given the highest percentage (because those are the people sponsored PERSONALLY by YOU.) You get the most money because they are your hard work. The commissions deeper down the level is smaller because the work was not done by you (or rather, indirectly because the new people are sponsored by your downline, hence a result of your hard work).
A simple mathematics will show actually the bulk of the money is made in the deeper levels, even though the percentage is smaller.
Level 1 You find 6 frontlines: 6 * $100 volume * 25% override = $150
Level 2 Those 6 find 6: 36 * $100 volume * 5% override = $180
Level 3 Those 36 find 6: 216 * $100 volume * 3% override = $648
Level 4 Those 216 find 6: 1296 * $100 volume * 2% override = $2592
Level 5 Those 1296 find 6: 7776 * $100 volume * 1% override = $7776
Level 6 Those 7776 find 6: 46656 * $100 volume * 0.5% override = $23328
At the end of the day, because of the duplication power, you will get paid the most when you build a massive organization at the deepest levels because there are the most people there.
This type of plan is seen in a lot of the older companies (since the 50’s) and they revolve around physical products. Although there are Unilevel Internet companies who use some sort of hybrid plan. Although the Unilevel plan is quite similar to the Stairstep plan in terms of structure, the commission payout method and building techniques differ very much because one is based on fixed levels and the other increases your ‘rank’ based on volume sales.
Advantages of Unilevel
Unilevel is very simple to design, very straight forward calculation. The design allows you to sponsor as wide as you want if you are very aggressive and have a large network. The company determines beforehand, how the percentages are paid out and it trickles down based on the depth of the network so it gives higher rewards to
Not Just About Arrows and Circles...5
Know Yourself, Know Your ‘Enemy’...6
Using the Knowledge Effectively...8
Unilevel: Unlimited Width and Depth...9
Stairstep: Climbing the ladder of Success...13
¬¬Binary: Two at a Time...19
Two-up: The Art of Giving Away...24
Matrix: Reloaded...29
In Closing...32
Recommended Resources + Bonuses...33
Using the Knowledge Effectively
Each plan will be explained in a few sub-headings.
(1) Plan Structure
There is a diagram associated with each plan. This will explain how the commissions are paid out, as well as the typical network building strategies. I will also illustrate typically what type of companies use this kind of plan structure.
(2) Advantages
Plan advantages are very crucial to build a long term business. If you haven’t decided which network marketing company to join, or you are thinking of moving to another company (for whatever reasons), this information will give you a very good idea how to build your downline, especially if you are moving your entire network to another company.
(3) Disadvantages
Not all plans are created equal. There will always be aspects where some plans excel where others don’t. Furthermore, as mentioned in the chapter above, you know where the weak points of other network marketing plans lie and you can use them to your advantage.
(4) Placement Strategies
Placement of your downline is crucial. Most of the time, this strategy also applies to companies which allow you to have multiple accounts (usually husband and wife, boyfriend and girlfriend, or brothers and sisters.)
NOTE: All plans illustrated here are presented in the rawest form and for you to understand and dissect the basic concepts. The information here is designed to guide only, not as a law. There are many hybrids and variations available in the market today. What I write here is the basic, fundamental structure of where most plans derive their ideas from. Check with your upline or company to be 100% PRECISE about your company’s plan.
Unilevel: Unlimited Width and Depth
The Unilevel plan is one of the oldest types of plans in the market. It basically allows you to sponsor as many people as you want at your level. According to the diagram, there are six people on your ‘frontline’ and more can be sponsored as you like. Your downlines can also sponsor as deep as they want until infinity levels with no restrictions.
In a Unilevel, the commissions are usually fixed percentages of generational overrides. This means that whatever commission paid to you as generated by your downline is determined by how deep they are in your organization. As you can see from the diagram above, the ones where the six circles are at the front line, is given the highest percentage (because those are the people sponsored PERSONALLY by YOU.) You get the most money because they are your hard work. The commissions deeper down the level is smaller because the work was not done by you (or rather, indirectly because the new people are sponsored by your downline, hence a result of your hard work).
A simple mathematics will show actually the bulk of the money is made in the deeper levels, even though the percentage is smaller.
Level 1 You find 6 frontlines: 6 * $100 volume * 25% override = $150
Level 2 Those 6 find 6: 36 * $100 volume * 5% override = $180
Level 3 Those 36 find 6: 216 * $100 volume * 3% override = $648
Level 4 Those 216 find 6: 1296 * $100 volume * 2% override = $2592
Level 5 Those 1296 find 6: 7776 * $100 volume * 1% override = $7776
Level 6 Those 7776 find 6: 46656 * $100 volume * 0.5% override = $23328
At the end of the day, because of the duplication power, you will get paid the most when you build a massive organization at the deepest levels because there are the most people there.
This type of plan is seen in a lot of the older companies (since the 50’s) and they revolve around physical products. Although there are Unilevel Internet companies who use some sort of hybrid plan. Although the Unilevel plan is quite similar to the Stairstep plan in terms of structure, the commission payout method and building techniques differ very much because one is based on fixed levels and the other increases your ‘rank’ based on volume sales.
Advantages of Unilevel
Unilevel is very simple to design, very straight forward calculation. The design allows you to sponsor as wide as you want if you are very aggressive and have a large network. The company determines beforehand, how the percentages are paid out and it trickles down based on the depth of the network so it gives higher rewards to
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