MLM COMPENSATION PLANS? BEHIND THE JARGON


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ARIIX Sponsor ID 3303017

There are three main types of compensation plans in MLM (Multi-Level Marketing) businesses: unilevel, binary, and breakaway.
The main difference between compensation plans is how you are compensated for building teams. With a unilevel compensation plan you can have as many people on the first level of your sales team as you want, whereas binary systems let you have two people on the first level of your sales team.
Breakaway systems use distributor teams instead and allow distributors to break off and form their own teams.

BREAKAWAY COMPENSATION PLANS EXPLAINED

Breakaway compensation plans were the original format for MLM companies with modern breakaway plans first being seen in the mid-1970’s. Most of the largest MLM companies use breakaway compensation plans of some sort.
These compensation plans focus on two primary distributor types: salespeople who are paid a differential bonus and sales leaders who are paid a generation bonuses.
Differential Bonuses
With differential bonuses there are several sales ranks and each rank qualifies for a different percentage of the commissionable volume minus what salespeople below them have taken. So if you qualify for 10% of the total differential commission, you’ll get 10% if no one beneath you qualifies, 5% if someone below you qualifies for 5%, and 0% if someone below you qualifies for 10%. Once you reach the highest percentage of the differential you can form a breakaway group and become one of the sales leaders.
Generation Bonuses
Generation bonuses are a percentage of the amount earned by all the breakaway groups that used to be part of your main distributor team. This ensures that you don’t actually lose income when a group breaks away.

UNILEVEL COMPENSATION PLANS EXPLAINED

Unilevel compensation plans came around in the early 80s as a way to simplify the breakaway compensation plan. These plans feature a baseline commission earned by all qualified distributors as well as several sales levels. You earn the same percentage of commission for every sales level. This means that when your sales level increases you won’t get a higher percentage; you’ll get the same percentage for different levels instead.
Almost all unilevel compensation plans also come with a bonus structure to keep salespeople, especially new salespeople, interested. A fast start bonus  (typically given when you make a certain number of sales or recruits within your first 2-3 months) as well as bonuses for top level distributors are most common.
If you can build a substantial organization it is quite possible to make a living with unilevel compensation plans but it’s virtually impossible to make decent money on your own. If the unilevel pays 5% and you only have one level beneath you, you have to generate $10,000 of volume to make $500. This discourages many new salespeople and is part of why they offer fast start bonuses.

BINARY COMPENSATION PLANS EXPLAINED

The first binary compensation plans came around in the late 80s. With these compensation structures each salesperson only has two legs/downlines. Salespeople work to build both downlines but are only paid commission on the smaller of the two downlines. The stronger downline is also an upline connecting one distributor to the one above them, so both salespeople will be continually working on that leg. Your actual commission for the pay leg will be one percentage of the entire thing, regardless of how many levels there are in the leg or what your sales rank is.
Binary compensation plans typically also come with a bonus structure similar to what you find in most unilevel companies, offering a fast start bonus and a special pool bonus for top level salespeople.

ARIIX COMPENSATION PLAN

Ariix is a MLM (Multi-Level Marketing) company that markets high quality brands, starting of with a wide variety of health and wellness products. The Ariix compensation plan is an entirely new structure called the multi line. It takes the best out of the binary, matrix and unilevel, allowing unlimited depth and width making Ariix the highest paying compensation plan in the industry.
How is Ariix’s compensation plan different from a regular binary compensation plan?
In a traditional binary compensation plan the arms of the business competing against each other (and usually pays out of the lower arm). When you sign up with Ariix you start out with two arms of the business below you. Those affiliates all then get two people below them, but they are all still linked to you. You will be paid 15% commission on the Product Volume (the number of products affiliates buy to sell) from the weaker line.
The Ariix compensation plan starts to differ from a binary plan when your pay line makes $2,000 or more in a single month. At this point you will be given a second pay line to manage. You get another pay line every time one of your pay lines earns $2,000 in a month.
Team Lead Bonus
Team lead bonus means when you bring just four customers to Ariix you earn enough in commissions to pay for your Ariix products. Bring four customer to Ariix and you will make the team lead bonus.
Matching Bonus
The matching bonus is a percentage of the base commission earned by the affiliates working under you. This bonus goes a full seven levels deep with the following pay structure:
  • 15% for members you personally sponsor
  • 10% on your 2nd genration
  • 5% on the third through seventh generations
The levels where you earn these commissions must also be unlocked, which means:
  • You can unlock level 1-3 by ging gold  and signing up four new affiliates in your first 8 weeks.
  • Unlock levels 4 and 5 by earning $500 and $1,000 base commissions, respectively
  • Unlock 6 and 7 by optmissing 2 income positions
Pay Line Optimization Bonus
Every time you’re assigned a new pay line you get one share in the Pay Line Optimized Bonus, however if you have the IIX membership that doubles to two shares. This bonus gets paid out at the end of every year from the pool, which is 1% of the total money earned from sales by the entire company.

ARIIX SAVINGS BONUS

When you make $250 in any given week in the Ariix compensation plan, Ariix will put an extra 15% of that into a savings account up to $500 per week. When your savings account gets to $10,000 you will get a phone call from Mark Wilson the president of Ariix and they will pay that  direct into your bank account and then every week there after will pay you accordingly.
IIX Membership Bonuses
The IIX membership doubles all bonuses in the Ariix compensation plan. The IIX membership comes with the elite pack and business pack when enrolling with Ariix or you can purchase it within your first 8 weeks of joining for $150.
Overall
The Ariix compensation plan is the highest paying compensation plan offered by any network marketing company. Designed by CEO Dr Fred Cooper who is known in direct sales as a foremost expert in direct selling companies and compensation plans. If you are looking to be well paid for your production Ariix is most certainly where you need to be building a business in the network marketing industry.


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