We can then apply that to the commissions on levels that various organizations (The ones that remain and that we are evaluating) would pay for this structure and evaluate the return for the average representative based on the time and effort they have put in. Also, we need to consider the fact that the number one reason for attrition, dropout, and failure in network marketing companies is that the average representative has such a difficult time in achieving a profitable situation. Knowing this we can conclude that if the plan we are evaluating yields more than $250 per month or thereabouts, this would be a plan that would significantly reduce the attrition rate in an organization. That is because in our assumption the average representative will need to spend at least $100 on their products (mentioned above but can be for personal use or sale in most instances) and will likely need to acquire a few sales aides, product samples, and do a bit of advertising (newspaper, business cards, flyers, etc…). Therefore if one can achieve more than $250 in residual monthly income on this hypothetical 20 Club organization that is doing $2,000 in monthly volume it can be said that this is a plan that is very advantageous to the average individual representative and very beneficial to retention and growth within the organization. 

To summarize compensation the plan needs to be capable of returning a profit quickly and residually to everage participant excluding one time bonuses.  There are a handful of companies in huge growing industries with fabulous products that are philisophically just and who do just that.  However, there is not many of them.  In our summary on the next page of this article we present some links you may want to evaluate.

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Summary
After going through this scenario with literally hundreds of companies there are only a couple that meet the criteria we have laid out. Regardless of what we have found through our research the method used and evaluation process remains intact and viable. Therefore, it is strongly recommended that you do this type of homework before becoming involved in a network marketing / MLM business opportunity.

To aid you with this there is a really fantastic online tool that will compare compensation plans based on the hypothetical 20 Club mentioned above in this article. In addition, this database driven tool contains results from nearly 200 MLM companies and you can compare one to another and examine what your ongoing monthly residual earnings would be in the 20 Club scenario. We highly recommend you give it a test drive by visiting the MLM Comp Plan Calculator.

Further the author of this article participates in those opportunities found to be viable using this method and has achieved great success. Opportunities that meet the criteria outlined here generally have a good retention and success rates and go a long way towards aiding the average representative in getting started in viable home business opportunity on a full or part time basis and getting profitable rather quickly. 

There is however one opportunity that meets nearly all the criteria outlined here but not the compensation plan section in full.  This opportunity is very lucrative if worked properly.  It is one of the premiere opportunities in the world today and is a HIGLY RECOMMENDED OPPORTUNITY!  Click Here to find out more about the World's #1 Business Opportunity.

For more information on MLM compensation plans a great reference is MLMInsider.com. For more about the businesses that meet these criteria please visit BOCOnline.com or email the author.