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One of the main attractions of MLM businesses is the fact that you can earn residual income, and that this continues to grow with minimal effort on your part. However, this can only be realized if you have a great MLM business structure that would ensure that the plan is sustainable, and would not just crumble on its own weight because all the money that is earned just goes to paying off residual income. There are a number of factors to consider when setting up the structure for your MLM business. To make sure that your residual income does not pay out too much, here are some of the things that you have to consider: 1) Income per sale – in order to know how much you have to give in bonuses, you have to know how much you will be earning first. There are different ways that this can be done. One way would be through giving bonuses not in terms of cash, but in terms of discounts. The bigger the order one salesman makes, the bigger his discount. Even if you place a cap of 50% on the discount you have, your salesperson would be able to keep half his sales because of his discount, and that's a huge earning. You need to make sure though that your company will still be able to pay the “upline” of your employee, as well as make a profit from the remaining amount that you have in order to keep the business operating. 2) Limits on downlines – some people believe that the MLM business would work out because all they have to do is hire a number of people, and that would be the start of their residual income. Although that is true in some ways, if you do the math you would know that the idea may not be sustainable in the long run, because the eighth downline of a person cannot shoulder the residual income of all eight people above him. Otherwise, the company itself will not make any money. To make this sustainable, you will need to put a limit on the number of downlines that can contribute to one's residual income. 3) Product – the backbone of the money making in any MLM business is the sale of a product. You need to have something that is confirmed to be a need, and can be easily sold. Once you have this product, then your MLM business should work. That means it would be easy to sell the product, and more people would be willing to sign on, and sell the product to others. 4) The caution for MLM businesses is really the presence of the product. There are some that have the structure of the MLM business, but rely more on the earnings of the buy in of people who want to re-sell their products to others. This becomes more of a pyramid scheme than anything else, because one cannot make money out of nothing, and most people would be very cautious to invest. An MLM business is a good way of making money as well as spreading it around in order to allow others to make more than just a decent living as well. The residual income is also a good way to attract people, because it allows others to promote the product and convince others to continue to do so as well, which will take care of the advertising aspect of the business. If you think all these things through, then you should be able to create success for yourself and continue to pass this same success to others as well. For more information on one of the best MLM companies in the world, please visit http://satinac.toolsrock.com/homebiz.html?
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