According to the company you are, it is the type of compensation plan working. The companies have designed different compensation plans in this industry. There is profit and personal gain from the sale of products by the network according to the following: phased Plan. It is also called Breakaway. It is one of the oldest and is used today. Distributors earn a Commission from their personal sales and sales of its network until they beat them on the step.
Some of the companies that work with this system are: Agel, Herbalife, Amway, Omnilife, etc. Plan Matrix. In this plan the number of sponsored that each person can have on your first level, i.e. its direct sponsorship is limited. Depending on the company, there may be different levels and fees vary depending on the level. Binary plan. This type of plan limits each level to two direct sponsorships. The main advantage is that there are no steps or levels.
Partners gain all their distributors the same regardless of the level in which they are. It promotes teamwork. The binary plan has three types: short leg, where the representative paid him commissions from the side that won fewer sales or consumption. Binary compensation 50/50 where the company pays partners by both direct sponsorships, when both legs are consuming the same amount of product. Another system is the binary of 1/3 2/3, which works similar to the 50/50, only that this is a little more flexible. The key of the binary plan is kept in balance or compensated. This compensation plan has been the last in was created, so it has certain advantages over others, as it is the case of not having levels, and a single frontality of two new representatives. Finally the revolt matrix is: in this type of system, all members of the team advance in the compensation plan by rotating the matrix system. Structure lift or pyramid. Its legality is questioned and consists of a game board in which each dealer pays one or more units of products in order to participate or receive bonus. This scheme, is considered to be a fraud, giving the money to the founder of the business and leaving in the last bankruptcy coming. You must take special care when researching any network marketing company because every day new companies are formed in the world and not all offer security in the business, or product management team.