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Residual Affiliate Income - The Various Plans

January 6th, 2009 · No Comments

In the last installment of RISE, we went over some tips on how to choose a company to represent and of course why residual income is so important. In this installment, we’re going to briefly cover some of the compensation plans that these companies offer and leave you with some tips. I’m sure you’re going to love it.

The interesting part about these residual income opportunities is that they all have different ways of paying its affiliates. This gives you a lot of choices as to what kind of company you want to work with. Each plan has its pluses and minuses but we’ll leave those more for the book itself to explain. There are basically 4 types of plans.

The first plan is what is known as The Break Away Plan. This is actually the oldest of all the compensation plans. Its basic premise is that each affiliate gets paid on an unlimited number of affiliates that are on their front line or first level. When these people reach their own designated level, they break away from the person above them and form their own organization.

The second plan is what is known as The Unilevel Plan. With this plan, you are only paid on a certain number of levels designated by the company. There are no breakaway groups in this plan. The more people you have on your first level, the more people you will have in your group.

The third plan is what is known as The Matrix Plan. This plan works on what is called a structured matrix. So with a plan that is a 3 x 5 matrix, you’ll have 3 people on your first level, 9 on your second, 27 on your third, 81 on your fourth and 243 on your fifth and last level. Anybody brought in beyond level 5 does not get credited to you.

The fourth plan is what is known as The Binary Plan. The word binary means 2. This means that you can only have 2 people on your first level. There are other things about this plan that the book discusses in detail. So I’ll just end this part of the discussion here.

Like I said, residual income does take some work. However, if you put the time into it, you don’t have to worry about losing your job and having no income because of it.


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