My specialty for last twelve years has been writing software for MLM companies, especially compensation plans.

In non-cyber world there are a great many different types of compensation plans. Some, like break a way plans, can be very complicated.

On Internet you usually see only three different types of compensation plans. These are forced matrix, a two up system, and a uni-level program. Of these forced matrix is by far most common.

Forced Matrix Programs

A forced matrix is a program where each member can have only a certain number of members on your first level. This number is usually between two and six with three being most common. When number is three, it is called a three-wide matrix. The lower number, more likely it is that you will receive spillover. As an example, suppose you are in a three-wide matrix program and you have three members on your first level. When you sponsor another member that new member would have to be placed somewhere below one of members on your first level. This is called spillover. Most companies want to be able to advertise that you will receive lots of spillover, so they make their matrix with a small width.

The other factor in a forced matrix is number of levels on which you will be paid. This usually varies from three to 20. If number is low then you will not have very many people in your matrix before it is filled. If number is large, like 15, then chances are that you will never get your matrix filled. My personal preference is a program that pays on six to eight levels. If program is three wide and pays on seven levels then it would be called a 3 X 7 matrix.

An important thing to look at is percents that are paid on each level. Some put large percents on first or second levels. Others put large percents on lower levels. With high payout percents on higher levels you are likely to be breaking even or making money fairly fast. With high payout percents on low levels it will take longer before you make any money, however income potential can be fairly large. I like higher amounts on upper level as this favors person that does not sponsor very many people, which is majority of members.

Uni-Level Programs

A uni-level program is very similar to a forced matrix. The difference is that with a uni-level there is no limit on number of members you can have on your first level. Uni-level programs are commonly used with free or very low cost programs. Many of traffic and surf programs are uni-level. The philosophy appears to be that if it is free or very inexpensive then it is easy to recruit people.

2-Up Programs

The third type is a 2-up system. These are harder to explain. Like matrix and uni-level, these have their roots in non-cyber world of network marketing. Originally they were called Australian 2-up or Aussie 2-up. Unlike a matrix where several members receive commissions from one member, with a 2-up system exactly one person receive commissions from a member.

With a 2-up program you must recruit three members before you make any money. The commission from first two you sponsor goes to someone up-line from you. You receive all commission from third person you sponsor, and from each person you sponsor thereafter.

However, it is not average person who enjoys huge success atop a powerful network marketing organization.

Unfortunately, there has been too much misinformation, dishonesty, and of course, our old friend 'hype' involved in business.

Still, as with anything, there is truth behind hype that can show you way to real success.

However, despite how 'easy' everyone who is desperate to recruit you into their business will tell you it is, it's not. It takes time. It takes knowledge. It takes confidence. But most importantly it takes a PLAN.

Those largely successful in network marketing, no matter company, have several things in common.

1. They believe whole heartedly in company they work with and products or services it markets.

You cannot succeed in network marketing if you are only a money seeker and do not genuinely care about company you chose to work with and use products or services it markets for yourself. Hands down, don't argue with this one, just trust me.

I know there are a few 'slick' individuals that can sell anything and seem to make it work for them, but unless that's how you want to be you'll just have to find a company you actually like and are happy to be associated with.

2. They have, and SHOW, a confidence in themselves and their ability to succeed.

People are attracted to others who are successful or have confidence in what they are doing. Everyone is looking to increase their wealth or position in life and will only listen to others they see as being able to help them in doing just that.

3. They know their products, their business plan, and likely objections they will face from people to whom they will present them.

Ever see someone who is high up in a network marketing organization that didn't know their stuff? Do you think they know their stuff because they are high up in organization or do you think they knew it first and that was what helped them to get there? Think about it.

4. They have a well defined system in place for obtaining leads on people that may be interested in what they offer.