RunawayLeg.com

Stair Steps is one type of a MLM Marketing Plan. It is shown usually after the Retail Profit section.

The position or percentage goes up as the sales goes up. Its just like climbing a set of stairs. When a distributor achieve 250PV, he is a 3 % ter.  (Three Percent-ter) as shown above.

What is PV?

PV stands for Point Value. Some other names are like BV (Business Value or Business Volume), eV (electronic Value). Some company may call it CV.

How PV works?

PV derived from the amount of sales generated by you and your group. 0.50PV could equals to $1.00, which means if you purchase $100 worth of products, your Point Value is 50PV. Some MLM company calculate it as $100 equavalent to 100PV. It varies from one product to the other and from one MLM company to the other. The bonus or income are calculated based on the PV for the month.

There are 3 ways how we work out this plan.

1) Accumulative

After you reached a sales of 250PV and created a sales of 650PV this month, which comes to a total of 900PV, you are a 6% ter. Perhaps they may call you a position, "Two Star". If you do another 850PV, you will reach the 9% mark. As you keep on doing your sales month after month, at your own sweet time, you know that you will eventually reach 12,500PV sales, at 21%ter (Eight Star position)

2) YoYo

The percentage of sales for each month is not certain. It depends on the sales you generated in that particular month. If you did a 250PV on the first month in the business, you are at 3%. When you did another 650PV, you are still at the 3%. The reason is because you start from zero each month. Only when you did a 900PV in a month, then you are entitle for the 6%. You know how YoYo is played. Up and Down.

3) Combination of both

Your sales accumulated, lets say from 250PV up to 9500PV. But from sales of 9500PV to 12,500PV is a YoYo.

So you may be at 21% this month, next month you could drop to 18%.

Authored by Kevinn Tan on 29th June 2009

Retail Profit is the first income in a MLM Marketing Plan. It ranges from 20% to 30%.

Let take for example: a product cost at $198.00,  customer price (C.P) and you, as distributor buys at $165.00, which is at a distributor price (D.P)

When you sell that particular product to a customer at $198.00, you make a profit of $33.00 ( which is 20% profit )

A MLM company may have a wide range of product line, and the percentage of retail profit defers from one product to another.

Some distributors likes to sell. They make their profit from selling. 

Tips:-

To join a MLM company, one will have to pay a Membership fee. Most MLM companies requires a membership fee. A new prospect may initially sell the products to earn the profit. From the profit earned, they sign up as a distributor under you.

If the membership fee is $50.00, then he/she will have to make 2 sales of the above product.

Authored by Kevinn Tan on 19th June 2009

This sounds similar to Agent 007 (Agent double O seven) but its not.

An MLM distributor with this position, zero zero one (001), means he is the number one person to be recruited direct by the company. All the rest of the distributors will be under him. The person who is immediately below him will be the zero zero two.

This zero zero one person will be someone who has the experience needed to run the MLM company, giving advice and producing sales for the company. Not only he will be rewarded with MLM bonuses, but he is also given allowance to make things happen for this newly established MLM company.

Zero zero one will be earning good income. But this doesn't prevent him or her to jump to another company, if the other company provides a better pay and bigger income opportunity. It could be some sour relationships going on between him and the company men.

He is also a very influencial guy, having the ability to both talk and bring in people to the company. He is responsible to make the company grow and being recognized by other distributors from other MLM companies.

If he is a zero zero one, he is somebody who knows his stuff. But again, not all zero zero one knows his stuff that well. It depends on his experience and exposure in the MLM business he has been involved with. Zero zero one improves as he goes along.

As zero zero one learns and improvized, MLM industry becomes more interesting in all aspects including the products, people behind the company, the strategies being used and especially the marketing plan.

Zero zero one is an important person as an upline, an advisor to the company and also a mentor, someone who we (distributors) could look up to and hope for in growing our business together. 

Authored by Kevinn Tan on 19th April 2009

Binary means having 2 legs in your MLM organization, one distributor on your left and another on your right.

The payout was designed in such a way that you have to balance up the two legs.

Some company which have a Binary Plan implement other payout which makes it more interesting. This is what we called it combination of two or many types of MLM Marketing Plans. 

As for now, let's talk solely about Binary Plan and how the word "RunawayLeg" comes into picture.

There was a rule which stated that you must have 1/3 and 2/3 of distributors on either legs, in order to get paid.

There was also rules that says you must have 3 distributors on your left and 3 distributors on your right, and also there are 5 left and 5 right to receive your bonus.

Nowadays, if you have sponsored 1 on your left and 1 on your right, you will also get paid. That sounds easy.

Unfortunately, there can never be a balance of both left and right legs in MLM business. When one of the legs grows bigger than the other, then you will have 1 big leg (a lot of distributors) and 1 small leg (less distributors).

Some MLM people named this big leg as an Elephant Leg.

The common word to use for this big leg which grows bigger than the other in Binary Plan is called "RunawayLeg"

RunawayLeg happens in Binary Plan and it is not so good.

Authored by Kevinn Tan on 5th April 2009

Binary according to Wikipedia : 

1) a system of two, characterized by or consisting of two parts or components; twofold.

2)  Of or relating to a system of numeration having 2 as its base.

To make it short : composed of two parts Having two parts

Binary is one of  many types of Marketing Plan or Compensation there is in the market.  And quite many MLM companies nowadays are implementing binary as their marketing plan.  

In this case, it is having one member on your left and another  member on your right in your MLM  organisation.

Authored by Kevinn Tan on 20th February 2009