SECRET # 2

Does the business have a lucrative compensation plan?

Of course, "lucrative" means different things to different people but the bottom line is this….

If you are going to be marketing a product for commission, you want to be earning a high commission bonus upfront as well as a residual income on the backend.

Most compensation plans either have high upfront income and low residuals, or the other way round, with low upfront income and high residuals.

You need to find a company with an equal balance of the two.

 

Why is this so important when searching for a home-based business?

When you start out in a new business, unless you have a great deal of capital behind you to "tide you over", you will need to make high upfront commissions because otherwise you will find it impossible to build momentum.

Most people starting a home-based business do so with the intention of supplementing their existing income initially, with the goal of building up to a full-time income, enabling them to leave their current employment or business.

But if all you're making is tiny $100 commission checks along the way, it's very difficult to accomplish this. You will run out of steam, and capital, before you reach your goals.

So you should look for a company with products selling for $1,000 upwards. This will enable you to earn commissions of $500 and over per sale.

Always look for a compensation plan which pays you at least 50% of the retail price upfront and one which also pays you a residual income.

The high upfront commissions will help you get off to a faster start and stay in the game whilst the residual commissions will help you retire.

If the company you choose ONLY pays high upfront commissions but no residuals, you will earn a decent-sized income quickly but you will eventually burn out because you will never be able to relax your pace, as the onus will be on you to produce month after month after month.

High residual commissions which you earn on the sales of your team are vital because then, as you build your team, you will be able to scale down your own activities as your residual income grows.

Click here to learn about the Home Business with the highest commissions and biggest earning potential in the WORLD!