Excessive demands on partners

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A common mistake, especially among companies seeking to quickly increase sales volumes and develop a partner network. But, for example, the need to attract 10 partners or make $1,000 in sales to receive the first rewards scares off newcomers without experience in MLM and they quickly leave the network business. The same applies to the requirement for MLM leaders to create a large number of partner branches - they are almost impossible to manage well and their productivity will fall. So, too complex conditions bitcoin data for receiving bonuses or higher ranks become the cause of a mass outflow of distributors and a decrease in the activity of the entire structure.

No break-even calculation

When entrepreneurs ignore the breakeven calculation when creating a bonus plan, they put the financial stability of their MLM company at risk. After all, the breakeven point helps determine what level of income is needed to cover all the costs of production, storage, logistics, technological infrastructure and payments to partners. Without taking all these costs into account, you can set bonuses and commissions for your distributors that are too high for your business to pay. As a result, this will lead to inevitable financial collapse.

Resume

Thus, a marketing plan is the basis for the success of every MLM business. But, as practice shows, creating a competent compensation plan is not so easy. To avoid mistakes, you need to deeply understand the specifics of the MLM sphere, various types of marketing plans, take into account the legislation of the selected region, the features of your products and business in general.