The bonuses and levels of compensation, along with other eye popping spiffs, can literally make a network marketer's head spin with dreams of residuals incomes falling into their laps. Multi-Level Marketing Compensation Plans are usually the stuff marketing dreams are made of.

These compensation structures are usually the last thing the MLM company will discuss with a likely candidate to come on board and become an independent distributor for them. It is the hook, the enticement. The opportunities to gain independent wealth are all wrapped up in the MLM compensation plans.

The MLM companies want to move their product. Their independent distributors are their marketers. The company knows that without their line of network distributors, no products will be sold. The organizations motive is money generated by their Multi-Level Compensation Plan.

Would you recognize a good, solid multi-level marketing compensation plan if it was presented to you?

Because Multi-Level Marketing Compensation Plans are the bread and butter, the determining factor that tips the scale in one direction, or the other, it is important to have a basic understanding of the different types of compensation plans that are most popular. If you are considering MLM opportunities as a career, you need to have a grasp of how the compensation plans work. After all, some MLM company's plan structure could be what you will be working with.

1.Unilevel Compensation Plans can be one of the hottest plans out there to some, but not as appealing to others. Typically, unilevel plans are the simplest to understand at a glance. These plans allows distributors to sponsor as many individuals as they want under them that go deep and wide, forming a nice little pyramid you can call your own.

It might sound good, but the truth is it will cost you a lot to keep this organization you are building. The key is the percentage of compensation you receive for work you put in.

When considering a unilevel plan, take the time to look at the details, then do the math. These plans usually mean a distributor needs to have a ton of people in their pyramid in order to make some serious money.

2.Binaries are confusing, but from experience we can tell you they work. Taking the time to know what makes these type plans work for you will be the tool for you to make some real money.

Binaries work with two's. Two frontlines, then two who get two, then two more, etc. Binaries might have the illusion of a pyramid, but Binaries only pay when the second leg is filled out. They are very involved. To know them is to put you ahead of the game.

3. Australian plans are scary. They may look good on paper, but they spell doom. Many veteran industry experts of MLM believe these plans to be 100% failures. Enough said.

4. Matrix plans another type that looks simple, but is loaded with pitfalls if you don't keep your eyes on the road ahead. The current matrix models build down to infinity, it the abstract. With matrix plans, you fill a cell, then start over. When considering this type of plan, get more detailed information about how and why these plans are unsettling.

5. Compressed plans pay out less, but they give you a real shot at making serious money. More MLM companies are going over to compressed plans. They are safe and fair minded to the distributors. These companies are setup so a new rep without a big following can still earn money quick.

Here is a snapshot of the 5 most highly recognized Multi-Level Marketing Compensation Plans. All of these plans are much more detailed and should be looked at in better scope when considering their structures. All detailed information is readily available to study online.