Updated: May 3, 2020
Throughout the many decades history of the network marketing industry, there have been many tens of thousands of network marketing companies. Each of those companies has/had a compensation plan (aka "pay plan"). Almost every network marketing company that's ever existed has claimed that their pay plan is "the best", or that theirs "pays the most", or that theirs "is the fairest", or that theirs is "exclusive", or that theirs is "copyrighted", or that theirs is "patented", or that theirs has been approved by an "attorney", or that theirs has been analyzed by a leading "economist", and so on and so on.
On top of all the claims, boasts, bragging and hype about the various pay plans being the best ever, what's worse is that pay plans have become convoluted, they've become over-the-top complex, and they've become extremely difficult to learn and to explain to others.
What's silly - and what always makes me laugh - is when a network marketer tries to "sell" his company's pay plan to a prospect, making it seem that the prospect should sign up with that company ONLY BECAUSE of the pay plan, making it seem that the company's pay plan is the one and only reason for getting involved in the company.
The Four (4) Basic Pay Plans
The bottom line is that there are just four (4) basic play plans. They are (in alphabetical order:
That's it! Those are the four basic pay plans. Everything else is just a mixture and/or hybrid of two or more of those four basic pay plans.
Do I have a favorite pay plan of the four? No, I don't. I've made big money with all four pay plans NOT because of the pay plan, but because I know how to "play the game" of network marketing and build a big downline quickly. I've made big money with a company that had a hybrid binary plan, and I've made big money with a company that had a hybrid breakaway/matrix/unilevel pay plan.
Is one plan better than the others? No, I don't believe for a minute that one pay plan is any better than the other three. The fact is that network marketers have made tons of money working with four pay plans, and with mixtures of the four plans. I know people who've become millionaires with the breakway plan, the binary plan, the matrix plan, the unilevel plan, and with variations and mixtures of those four pay plans.
However . . . there's a whole bunch of self-anointed pay-plan experts out there who will argue feverishly that one particular pay plan is better than the others, and they use all sorts of "smoke & mirror" statistics to try to make their point. To that I say, "Let them argue. I'm not wasting my time reading or listening to their arguments." (Not surprising, only a few of those so-called "experts" have ever made big money in network marketing, yet they consider themselves "experts" on everything and anything related to network marketing.)
Some 25 years ago, there was this stupid but popular network marketing magazine. It went bankrupt and shut down due in part to the fact that its articles were vanilla-coated B.S. generic training that caused people to fail, such as the constant emphasis for warm-market recruiting and the asinine 3-foot rule. Anyways, this once popular industry magazine featured a two-part article in which two so-called network marketing "experts" argued for the various pay plans. (It's humorous to note that I've since learned that one of the two "experts" has never owned his own home, and for most of his adult life he has bounced around from house to house belonging to his various "friends". He lives in one house until he wears outhis welcome, then moves onto the next one. And I since learned that the other "expert" owns what most people would call a rundown "shack". One of his articles featured his business address, which is actually his home address, so I used google maps to look at it from the street, and my jaw dropped so far down it hit my desk. I was shocked! I mean, I've seen better looking dog houses than what this so-called industry expert lives in.) In Part 1 of the two articles, the one "expert" argued that the Breakaway Pay Plan was the best, while the other "expert" argued that the Binary Pay Plan was the best. In Part 2, the one gy argued for the Matrix, while the other buy argued for the Unilevel. Neither "expert" won the argument. Each made good cases for the pay plan he was advocating.
Reading those articles was a royal waste of time. The paper the articles were printed on would have been better served as toilet paper on a camping trip.
Joking aside, the point I want to make is that a person can take any one of the four plans, and they can make a strong case for that particular pay plan, that it's the best of the four plans, while putting down the other three plans. A person can do that with any one of the four pay plans.
It's like taking four candy bars - a Snickers, a Milky Way, an Almond Joy, and a Baby Ruth - and giving one bar to four people, then asking those four people to make the case that the particular candy bar they have is the best of the four. In the end, no one is the winner because each person believes the candy bar he's holding is the best of the four, with the bottom being that all four candy bars still taste great!
The bottom line is that all four network marketing pay plans - binary, breakaway, matrix, and unilevel - and all of the many thousands of hybrids and mixtures of those four pay plans - are for the most part good pay plans. No one particular pay plan is better than the others unless a person wants to believe it is.