In this blog, we shall discuss all about MLM profit and loss Calculators and how that have made it easy for any marketer to calculate the compensations and bonuses from a network by MLM Calculator, without the complexity of using Excel tools for calculation.
People around the world are looking for ways to earn a bit of extra cash. Days of toiling after school and work for part time jobs are long gone. With the advent of internet into everyday lives, people have a great source of passive income in the comfort of their homes – multi level marketing.
Multi level Marketing – the golden words to earn big
Multilevel marketing involves the sale of products or services through a bunch of independent distributors who are not the direct employees of the company, but earn commissions on the sales they make. The company does not need to spend a fortune for marketing and advertising, the distributors bring in the sale through word of mouth and through online marketing. They are in return offered great commissions and other incentives like all-paid holidays, cars etc upon attaining specific targets.
This practice of selling products through independent agents started in the late 1950s in United States of America and Amway, Tupperware and MaryKay were one of the first companies to begin networking marketing or multilevel marketing. If we take a look at the products sold through MLM, we can see that life style and beauty products dominate the stage.
Compensation Plans – The backbone of MLM business
Now that we know how the independent distributors earn money in a MLM network, let us see how to decide how much they would make.
There are a number of MLM Compensation Plans that have varying network structure and compensation calculations. Now a days, companies are even opting for combining two or more plans and arriving at a customised plan. Many a times, MLM companies have fallen because of the mistakes they make over deciding the right compensation plan. They overpay their distributors and lose big time on money. So, the company must take care in deciding the right compensation plan and it’s calculation before building the MLM software for the smooth functioning of the business.
Basically, three plans are quite popular in the MLM business.
1. Binary MLM Plan
2. Unilevel MLM Plan
3. Matrix MLM Plan
MLM Calculators – Easy way out!
Now, it might seem to calculate the compensation and bonuses for these MLM Compensation Plans. The fact is that a MLM company deals with really large networks. By large, we are indicating thousands of members. It becomes practically difficult to calculate the compensations from simple means like Excel tools.
Microsoft Excel requires the user to develop complex equations and formulas to calculate the compensations. Chances of errors are creeping in are very high. With our intricately developed MLM Plan Calculators, all you need to enter some basic details and voila! You will get the commission you can expect from the network.
Fret not, we are happy to give you a hand.
All you need to do is enter a few basic details regarding the network like Joining Amount, Product Amount, Capping / Ceiling, Number of Levels, Admin Charges, Tax Deduction etc, the calculator gives an insight about how you would fare before you join the network.
What are you waiting for? Get rid of the dreary Excel tools, workout your MLM compensations with MLM Compensation Calculators by Infinite MLM Software.