This document summarizes a network marketing compensation plan presentation. It discusses the role of distributors as catalysts and powerhouses. It then analyzes different compensation plan structures like unilevel, binary, matrix, and hybrid plans. The presentation promotes a company called CLIXSTERS and its integrated compensation plan, which combines elements of different structures. It provides examples and projections showing how CLIXSTERS plan can provide higher returns than other plans. The document aims to educate people on compensation plans and recruit them to CLIXSTERS' opportunity.
2. Your role & significance
You are a POWERHOUSE
Catalyst
Power Booster
Turbo Charger
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3. Building the Foundation
âREPLICATIONâ
The Power Behind the Network
It is duplicating/copying several times
over, the various aspects of the
CLIXSTERS business program so as
to create a successful, profitable, and
progressive business at the shortest
possible time.
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7. The Compensation Plan
Compensation plans are ultimately the way in which you get paid in a network
marketing business and therefore it is important that you understand how they work.
In which will teach you how to understand a network marketing pay plan.
4 basic compensation structures:
1. UNILEVEL 2. STAIRS STEP 3. BINARY 4. MATRIX
This will evaluate the benefits and limitations of each of the common pay plan
structures and help you to identify the best compensation plan.
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8. UNILEVEL PLAN
There are no width limitations to this plan and commissions are normally paid out on
a limited depth (common plans that we have reviewed pay commissions between 5,7
or 10 levels deep).
Therefore, the common goal of this plan is to recruit a large number of frontline
distributors and then encourage them to do the same.
Weakness and disadvantages:
Many direct sponsors required Huge number of distributors
with minimal income potential
Limited leverage income
With maintenance
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9. STAIRS STEP PLAN
The Stair Step Breakaway Plan was one of the
original network marketing compensation
plans and is still used by a number of
foundation companies today. this structure
has been around for many years and has a
proven track record it is still commonly
implemented by some new start up
companies, however, just like all
compensation structures there are some
advantages to this compensation
structure, there are also a number of
disadvantages.
Weakness and disadvantages:
With personal sales volume requirements Upgrading sales requirement for positional
qualification
With group sales volume requirements
Breakaway â decreasing income
Upgrading personal maintenance
Demotion
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10. BINARY PLAN
Binary Compensation Plan
Binary Plan is one of the most popular compensation model among network
marketing companies and members within the industry.
As well as the simplicity of the design that the binary compensation
structure offers there are a number of advantages that make it attractive to
all network marketers including those new to the industry and part-timers.
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11. Binary Compensation Plan is not the most lucrative compensation plan
Although the Binary Compensation Plan is not the most lucrative but it is
believed to be one of the fairest compensation model that offers very high
potential income if you are willing to put in the work.
Binary Compensation Plan Helps Even The Average Network
Marketer
The average network marketing distributor sponsors between 2-3 new
distributors into their business.
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12. Older plans started to give the industry a bad reputation
as being "too hardâ.
After these studies started to appear in the 1980âs the
Binary Plan was create to give everybody a fair chance
of success. Because the Binary Compensation Structure
only allows the sponsoring of 2 frontline distributors it
means that even your less than average network
marketer still has the potential to achieve financial
freedom using this compensation model.
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14. MATRIX PLAN
Matrix Plan
The Matrix Plan, also known as a Forced Matrix Plan, is based around a
compensation structure that has a set width and depth for which distributors are
compensated. Although there are many variations to this compensation
plan, the basic concept remains the same.
The basic structure of this compensation plan is normally identified by a simple
equation that distinguishes the width and depth of the plan.
For example a 3 x 5, plan suggests you can only sponsor a maximum of 3
frontline distributors and you have the potential to earn commissions up to 5
levels deep.
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15. When reviewing compensation plans, in particular the different Forced Matrix
structures, you should be aware that the narrower and deeper the plan, the more
supportive your upline distributors will be.
For example a 2 x 12 plan encourages more teamwork and support from upline distributors
than a 6 x 4 plan. Having said this, the variable commission rate should also be considered
as some wider plans have an incentive for distributors to focus their efforts towards
assisting different levels of distributors.
It should however be considered that a number of these bonuses are very attractive, only
a small percentage of distributors will be successful enough to earn them.
In summary the matrix compensation plans have the potential to be very rewarding to
both new comers and recruiters particularly once you get to understand the compensation
structure.
Like most compensation structures this model does offer the potential to earn a very high
income if you are willing to put in the work.
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18. CLIXSTERS INTEGRATED COMPENSATION PLAN
Supported by 4 basic compensation model
1
UNILEVEL PLAN CLIXSTERS PLAN
VERSU
Left Group Sales Right Group Sales
S
You
100CV 100CV
Direct Referral
100CV 100CV 100CV 100CV
Income
Direct Referral $ 277 CYCLE INCOME
Income * $177 - cash
* $100 - Product Certificate
* 20CV- credited to MMB
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19. CLIXSTERS INTEGRATED COMPENSATION PLAN
Supported by 4 basic compensation model
2
STAIRS STEP PLAN VERSU CLIXSTERS PLAN
S
With personal sales volume requirements
With group sales volume requirements
NO maintenance
Upgrading sales requirement for
positional qualification Achievable qualification
Upgrading personal maintenance No demotion
Breakaway â decreasing income NO breakaway
Demotion
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20. CLIXSTERS INTEGRATED COMPENSATION PLAN
Supported by 4 basic compensation model
3
BASIC BINARY VERSU CLIXSTERS BINARY PLAN
S Left Group Sales Right Group Sales
Left You Right
Entry CV Entry CV
50CV 50CV
Personal
Cycle 20CV 20CV Group/ Cycle
Personal Repeat Purchase
1 source pairing Group Repeat Purchase
generating system Accumulated 50 CV Accumulated 50 CV
5 source pairing
generating system
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21. CLIXSTERS INTEGRATED COMPENSATION PLAN
Pairing incentive derived from repeat order
OTHER BINARY CLIXSTERS BINARY PLAN
VERSU
Left You Right
S Left Group Sales Right Group Sales
SALES VOLUME SALES VOLUME
SALES VOLUME SALES VOLUME
P8,800 Group sales
P50,000 â P100,000
Group sales Accumulated 50 CV Accumulated 50 CV
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$38
22. CLIXSTERS INTEGRATED COMPENSATION PLAN
Supported by 4 basic compensation model
4
BASIC FORCED MATRIX VERSU CLIXSTERS MATRIX PLAN
S Left Group Sales Right Group Sales
Left You Right
100CV 100CV
100CV 100CV
Perfect Matrix
100CV
100CV
$ 277 CYCLE INCOME
Scenario 1
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23. CLIXSTERS INTEGRATED COMPENSATION PLAN
Upline support program
BASIC FORCED MATRIX CLIXSTERS MATRIX PLAN
VERSU
Left You Right
S
Left Group Sales Right Group Sales
100CV 100CV
Perfect Matrix
100CV 100CV 100CV 100CV
$ 277 CYCLE INCOME
Scenario 2
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24. CLIXSTERS INTEGRATED COMPENSATION PLAN
Downline support program
BASIC FORCED MATRIX VERSU CLIXSTERS MATRIX PLAN
S Right Group Sales
Left You Right Left Group Sales
100CV 100CV
100CV 100CV
Perfect Matrix
100CV 100CV 100CV 100CV
$ 277 CYCLE INCOME
Scenario 3
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25. AVERAGE ROI PROJECTION
Base on total sales and ROI or income projection
OTHER COMPANY VERSU CLIXSTERS PAY PLAN
You
S Left Group Sales Right Group Sales
Left Right
100CV 100CV
100CV 100CV 100CV 100CV
Capital = P8,000 Capital = P4,500
ROI: 1,500 x 5 = P 7,500 ROI: P7,600 = 68% income from capital
$100 Products + 20CV for MMB
RATIO: 1-10 RATIO: 1-6