INVESTMENT MLM COMPENSATION PLAN
Investment plan is different from other compensation plans. In this plan, people make an investment in the company and the company pays them a daily based percentage return. This fixed daily percentage return is called royalty. The percentage depends on the amount invested.
It is more or less like stock market investment, except that you do not get a share of the company. This plan offers a great opportunity for people to generate an indirect income. And this is a more suitable plan for people with no experience in the MLM business. Unlike other plans where you have to recruit associates and develop downlines, this plan lets you earn income by making an investment. The scheme of investment changes from company to company. Some companies have the amount to invest fixed while others have a set minimum amount for investment.a
HOW DOES INVESTMENT PLAN WORKS?
MLM companies usually offer this plan along with other regular MLM plans. So, a member who opt for this plan first makes an investment. The company then pays a fixed daily percentage return to the member, i.e., the investor. It is as simple as that.
The investment and returns are fixed by the company, but also in accordance with government regulations. The investment is sometimes called top up and the daily percentage return is called royalty. The company invests the top up payed by the members in its business. So, it does not put a burden on the company to pay back royalties.
It also helps the company in raising the required working capital. This is how it works for the company. As for the member who makes the investment, it works in that it lets him earn a better return than conventional investments or bank deposits.
INVESTMENT COMPENSATION PLAN ADVANTAGES
- Better income for members. Investment plan offers a better income opportunity from the MLM business, compared to other MLM compensation plans. Since it is usually coupled with other regular plans, returns from the investment plan serves as an additional income to members.
- Alternative mode of investment. As mentioned earlier, opting for investment plan in an MLM company is a better alternative to traditional financial investments. It is way better than saving money in a bank deposit and safer than investing money in stock market.
- Good for people with no selling experience. Other MLM compensation plans require you to be good at selling and recruiting people. In most cases, this is something that needs some experience. But in investment plan, all you need to do is raise the money for the investment. No experience whatsoever is required. But you are still assured of regular income.
- Investment is needed only once, but income will be recurring. You will be regularly getting royalty for the one-time investment made, just like how you would be regularly getting interest for your bank deposits. The added advantage of MLM investment plan over bank deposit is that the returns are comparatively much more.
- Most attractive option for newcomers. Unlike other plans that are difficult for newcomers to start making income, this plan is favorable for newcomers in the MLM industry. You do not have to satisfy any conditions to be eligible for income, other than making the investment.
- No work involved to generate income. This is the best part about the investment compensation plan. All other compensation plans in the MLM field requires some or the other tasks to be performed. It could be anything from recruiting associates or selling products. But in this case, your investment does all the work for you.
INVESTMENT COMPENSATION PLAN DISADVANTAGES
- No added income like compound interest of bank deposits. For bank deposits, there is additional income from compound interest. This means the interest amount earned from the deposit is added to the deposit amount. So, the next time interest is calculated, you will be getting interest for this added amount, not just for the original amount deposited. This is not the case with money invested in the MLM investment plan.
- It comes with a limit on possible income. The royalty you are entitled based on your investment will be already fixed by the company. So, in this compensation plan, there is no scope for any additional income beyond that. Other compensation plans have no such limitation as to how much money you can make.
- Royalty may not be justifiable in terms of company’s profits. If you are investing in stocks or shares, your income will grow as the company’s profit grows. But in this case, your income is fixed, irrespective of how well the company performs.
- Investors are not entitled for shares of the company. Though the investment goes to the company’s capital assets, the investors do not become shareholders. This compares negatively with investing in the share market, where you get shares of the company worth the amount you invest. Shares can also be sold whenever you want. But the money invested through investment MLM compensation plan stays put.
UNIQUENESS OF INVESTMENT MLM SOFTWARE
As evident from the above points, investment compensation plan is a logical choice for newcomers with sufficient financial capacity. But we cannot compare it with other financial investment methods like stocks, shares, mutual funds or even bank deposits. Each of these conventional modes of investing have their own peculiarities, advantages and disadvantages. But if you are looking to make an entry into the MLM industry, this plan assures you a steady income. Also, if you are someone with no aptitude in sales and marketing, but still want to give a try in the MLM business, this is the best suited compensation plan for you.
COMPENSATION IN INVESTMENT MLM PLAN
The MLM Companies Define Their Compensation Plan Based On Their Policies. As A Leading Provider Of Investment Software System, We Offer Different Compensation Structures As Per The Companies Requirements.
INVESTMENT RETURN BONUS
The percentage of investment returns are fixed under policy norms and vary upon companies. This is one of the fabulous money earning platforms for new members after investing some money at once.
REFERRAL / SPONSOR BONUS
It is same like in other compensation plans. This as a motivational bonus because these type of bonus is offered by sponsors to make members active in stable network expansion.
It is the amount earned as a percentage for every person signed on by your down lines. This actually starts almost 5-6 levels below you and is actually a motivation for you to grow your network deeper.
RANK ACHIEVER BONUS
his bonus is paid to existing members when they turn eligible to the higher level or rank. It acts as a promotion bonus in the MLM industry.