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Comp Plans: EVOLUTION (Part 2)

(See also – Part 1: The best compensation plan in the world)

It’s impossible to understand the variations in compensation plans without defining MLM.  So, what is MLM?  Go to Google type in “what is MLM” and you’ll get an onslaught of varied opinion.  The best descriptions are those that start by defining it from a surface, face value approach.

Multi-Level Marketing:

Multi:  More than one.

Level: Generation or degree of separation.

Marketing:  “the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling.” (

So, what is MLM?  Any business where “participants in the marketing program may recruit other participants”[1] and where “commissions, cross-commissions, bonuses, refunds, discounts, dividends, or other considerations in the program are or may be paid as a result of”[1] a sale of a product or service “for valuable consideration”[1]  “through independent agents, contractors, or distributors, at different levels.”[1] Read the rest of this entry »

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