MLM Binary Model Vs Corporate Hierarchies

I’m employed in the corporate sector and have a part-time network marketing business. I’m OK on both accounts and although I’m very new to direct sales and realize the stigma it creates, I’m just not OK when I hear comments like this. Here’s a newsflash…It’s the same in the corporate world!Comparing an MLM binary system and a corporation’s hierarchy, you can say the TWO are actually quite similar in that the ones at the top (i.e. CEO of a corporation and Founder of an MLM company) do and will make more money from the efforts of those below them. That’s why they’re the CEO and Founder.Here’s the biggest difference – those at the bottom of an MLM structure have a greater chance to increase their earnings vs. being at the bottom in a corporation.COMPARISON ANALYSIS:Corporate Compensation Plan:The CEO of a company hires Executives, which are placed immediately below the CEO.Each Executive is responsible for a certain number of direct reports, called the VPs. VPs are responsible for a certain number of direct reports, such as Directors.Directors are responsible for a certain number of direct reports, and so on and so on.The efforts of those at the bottom return bonuses for their managers. The efforts from the managers return bonuses for their managers, all the way up to the CEO’s bonus.Employees work approximately 8-10 hour days.
Receive a salary.
Receive insurance benefits (premiums are deducted from paychecks).
Most companies have done away with profit sharing and stock options due to the new Healthcare Reform Act here in the States.
Many people to answer to.
Merit increases, if any, usually will earn about 3% of your prior year’s salary. If you’re earning $50,000/yr., your annual increase will be around $1,500 or $125/month or an extra $31.25/week in your paycheck. At this rate it will take you 24 years to earn a 6-figure income.
As of January 2011 there were 2.8 million job openings and approximately 22 million civilians looking for full-time employment. Of the 22 million, 8.3 million are working part-time because they’re unable to find full-time jobs. Source: National Jobs For All CoalitionRevenues received from products and/or services sold, fund payroll, research and development, marketing, and other operating expenses, with the overall goal in turning profits.Companies downsize for many reasons such as acquisitions, mergers, poor economy, or poor management. The goal is to decrease expenses or fix an otherwise failing business. When this occurs, employees who are fortunate in making the cut are usually overwhelmed by additional workloads, which they need to keep up in order for their managers to receive their bonuses — all the way up to the CEO and rightfully so. The CEO is managing and overseeing all operations of the company.MLM Binary Compensation Model:The Founder of the company enrolls new business partners (team members, owners, business builders, etc.) in which the first two are placed immediately below the Founder (one on the left leg and one on the right leg).All additional owners are placed on the next level’s outermost leg, thus adding new business for those who are immediately below the Founder.The level immediately below the Founder, enroll new owners (one on the left and one on the right). Any overflow is placed on the next level’s outermost leg, bringing in additional business to their downline.Set your own hours.
Nobody to answer to.
Your paycheck is dependent on your efforts as well as your upline and downline’s efforts. All the activity performed by you and your downline (remember, your downline includes your referrals, your sponsor’s referrals, and your downline’s referrals), earns points, which in turn becomes part of your paycheck.
Sponsor refers new members -> Your business grows
You refer new members -> Your business grows
Your downline refers new members -> Your business grows
As your business grows, you begin moving up in rank.
The higher the rank, the higher the commission checks.
Insurance coverage in the US, under the Healthcare Reform Act, offers programs such as “Exchange” and “SHOP” (Small Business Health Options Program), which provides affordable health insurance coverage for small businesses and self-employed individuals. Source: Small Business Health Coverage
Depending on your MLMs compensation package, additional benefits may differ, such as earning bonuses and stock options.Revenues earned by the company as a whole, are used for operating expenses and researching new ways to improve products and/or services to benefit partners and keep their business flourishing. If the partners are able to excel and grow their business, they’re able to reap greater financial rewards — all the way up to the Founder and rightfully so. Like a CEO of a corporation, the Founder manages and oversees all the operations of the company!Conclusion:For me personally, I’m happy to be positioned where I am right now. I have a great full-time job and a part-time job that’s easy to share with others. If anything were to happen to my full-time job, I won’t be stressing over finances. Having a Plan B in place is critical these days and I’d rather have a plan that allows me to work my own hours, from my own home!Network marketing isn’t for everyone… I didn’t think it was for me until this opportunity crossed my path. I loathe selling and hosting parties at strangers’ homes – taking valuable time away that I will never get back and the gas to get there, well – with the price of gas and the time away from family and friends, doesn’t say much for work-life balance, especially when you have a full -and part-time job. Skyping with others and showing them the business opportunity from the comfort of my home is AMAZING!!:)