Product or compenstation plan, whats more important to you?

When it comes to picking a company, at times you hear of people joining companies strictly for compensation plan, yet others will join because they swear by the product.

Which do you think is more important?

It comes down to motivation. That's a major key to success.
If you can be motivated enough to stick with it through the lean times, you win.
The majority quit in the first 90 days because neither the product or comp plan excites them enough.
When both motivate you then the sky is the limit as long as you can stay excited.
If you lose the excitement then you lose the desire to tend your garden.
You reap what you sow, but it's only good if you nurture it to fruition.

I totally agree. It should be a combination of both. I think relying on one solely will limit your success, amongst other factors like, potential upline, support and duplication.

Then you have even some "leaders" jumping from company to company and I have even heard some say its all about the comp plan...


Thanks for your input!

Be a product of the product is still the best advice.
When a customer becomes a rep they already know the product works.
That is half of the motivation problem solved, and enough to carry some through.
It's when the excitement wears off, if ever, that they worry about the comp plan.
Some products are good enough the customers do your advertising for you.
It's hard to lose money with free advertising and no auto purchase or fees.
Losing money (from day one usually) is the biggest motivation killer.

The people who join just because they loved the comp plan and were eager to make a ton of money are the ones that made it big.

The ones that got it for the product will probably do a little or a whole lot worse then the person who loves the comp plan.

There is a lot of people who just love the product and don't focus on building their own teams.

How many super excited about the product but not the money people are making it big in a home business? Lets see....I know of and have heard of none.

Business, home business is about making money. Never ever think product trumps compensation.

FreeCashMan: Never ever think product trumps compensation.
The product creates the compensation plan, without a product you have no sales.
Even the best laid comp plan is nothing if the product won't sell repeatedly.
Short term, sure all you need is an exciting comp plan to lure people out of their money.
Long term you better be providing a product or service that has real value.

I understand your point, but the long term cash gifters would say you are wrong. Not a cash gifter guy but I like cash. Long term you need to be making money, if not you are just buying stuff from a non retail outlet store, but one ain't really doing business.

There are far too many people getting "garage qualified" on products, and no money from their business, and more so no serious hope of making money as the comp plan is wretched to the average and ordinary person. It's about making money when it comes to any business, and one's home business is no exception. Why do you think these physical product companies like to set people up on autoship as a way to move more product than an individual on average could use? Lets take a guess....so the company can fill their MONEY couffers.

It's the "Product Ruse" of big business. But the little guy is chastise for not having some grandiose product to b.s. people, a.k.a. make them feel good about autoshipping their money every month.

I hate to break this to people but It's All A Money Game. From one's job, to the street vendor selling illegal cd's and dvd's, all the way back to Target and Walmart pimping low cost (would be slave labor) out of China, Malaysia, Philippines, etc. down to our little home business opportunities.

There's a saying, "you may not get what you pay for, but you pay for all you get". Stop thinking you've got to get some great deal for your money, it's a ruse. There is no deal unless you produced the product from raw materials. That's why the best home business to be in is the leverage type business(es) such as networking. Big business is doing nothing but leveraging for big profits. They call it doing what's best for the company by shipping production overseas to China, etc., and paying employees minimum wages, while Executives live the dream....From Their Leverage Business.

If people focused on the money and not the product, they'd probably make money. But nope, people not making money love to talk about how great their product is, while broke (not a personal attack on anyone a general statement). I hate seeing people get into a home business justifying their lack luster success, if they have any, by saying the product is great. Hell, I can get great products from Wal-mart, but I don't won't to work there for minimum wage (or any wage) and certainly not free. However that's what many people are doing with their "I just love the products, I don't care if I don't sign any other distributors up under me" mantra. A.k.a. Autoshippers for Life - Will work (hard elsewhere) for autoship of my great product!

Be about the business of making money people, or STOP saying you're in business. Understand the plan for making money and how to implement it. And if you've got some would be great product that's cool, but don't get caught up in a great product and biz and not be making some money or on serious path to it. If that's what you want then just buy the product, and get busy somewhere, that can make you some money to live a more abundant life. For some that may be cash gifting (to bring the point full circle).

That Great Product, like "the Sony Walkman" will come and go, but not the need for Cashflow

Just2EZ: The product creates the compensation plan, without a product you have no sales.
Even the best laid comp plan is nothing if the product won't sell repeatedly.
Short term, sure all you need is an exciting comp plan to lure people out of their money.
Long term you better be providing a product or service that has real value.
Nicely put.

At the bottom of the site below is a list of estimated top earners in the networking home business industry. If anyone believes they go there being caught up in being a "product peddler" vs an "opportunity provider" you may want to re-evaluate things.

Products don't create compensation plans, people do. Product just provides a means of exchange so that people can't say I didn't get anything for my money.

One can be a seller of product and make some money, or one can be a seller of opportunity for others to make money and get rich. That's what these folks did to get rich:
http://www.businessforhome.org/

FreeCashMan
Yeah, great example, 6 of the top 10 are in Amway where 99%of IBOs lose money.
Must be nice to be at the top and not care about how you get there.
I rest my case, thanks for the evidence.

Please dude. It's not Amway that is the problem per se, as you will find the same statistics in any mlm. We could say the same about reps in your product biz I'm sure. I'm sure all IBO's got some product for their money, so this statement that 99% lose money is not accurate. Now WHY are they not succeeding to build a business and make profit is the question.

Because people don't get into marketing EFFECTIVELY to build a business.

No one should ever knock Amway, as a whole, until they start and build a business and use their success to buy their own NBA basketball team and arena (or the equivalent). Because Amway is, we are.

So, I don't see how such validates your perspective. Fact are all those people are successful not because they lead with and "sell" product, but opportunity. They don't make that money based on some retail sales the do daily. The make that money because they put leverage in full effect with that networking biz. Ultimately people are looking for opportunity to make them money for a better life. We can get great products anywhere. There is no better opportunity than one involving leverage. MLM and Trading The Financial Markets with Leverage can be the path to a 'poor' man's house of wealth.

My point is that people are justifying their lack of making money in these phsical product based businesses, in particular, by saying that well at least I've got a great product, and such is uninformed thinking about what being in business is about, from big corp to our home biz.

So again, it's cool to have a Fantastic, mind-blowing, OMG! product, but are you really into your business for that or to make money (again great products come and go like the wind). Those that are about making money go about doing the things to do so and wisely want good compensation for it. Now of course some believe that the compensation they are getting in their 'great' product biz is nice, and if that works for them then cool. But fact is that most compensation plans of physical based product companies are wretched to the average and ordinary person because they take dare near a basketball arena size of people to make a good 5 figure monthly income.

But let's not put mediocre biz production as being justified by a great product that one is receiving on autoship with no serious team building for profits, or it's better to be in this "great" product biz than to have a biz that will truly pay me more for the same efforts. The GREAT PRODUCT necessity for long term success is a ruse, my friend, sorry.

People's lives are filled with daily work on jobs they don't love for money they do. It only takes a decent product with a great pay plan to create massive success. As I've stated before McDonald's proves that every day they open up another poor quality food restaurant around the world.

All The Best and Much Success

FreeCashMan: As I've stated before McDonald's proves that every day they open up another poor quality food restaurant around the world.

With that comment I surrender, can't argue with that one.
McDonald's makes money selling product and franchise fees on products sold.
Billions of CUSTOMERS to thousands of IBOs.

FreeCashMan: We could say the same about reps in your product biz I'm sure.
Dude?, you sure DON'T know the facts about the reps in my product biz.
For starters no one pays to join my biz or gets stuck with an auto-ship.
If they want to buy the product it is strictly a business decision to make more money.
The only rep that has ever quit my team was in India before we shipped International.
That's not to say they have all made money, some are not motivated to sell.
Those who want to make money can make it because there are real customers.
In real stores and doctor's offices none the less.
Get your facts straight before you are "sure".

And i was just thinking from a production point of view not the distribution channels. You know, company overhead costs. But some very good points from you guys.

So I think I can honestly say.... different strokes for different folks. Thanks for making this a great thread!!!!

Again, I think I stand with what I inital think.... balance is key, yes we are in business to make money, yet, when you have a passion about it (the product) it will take you far as well.

FreeCashMan

Thank you for that link, my friend.

I've been looking for something like that for some time now.

Products are indeed super.

But I analyze the compensation plan, and get on the horn and get my top leaders to work on building our distributor team. That is how ALL of the top leaders begin.

They don't start tasting monavie juices or ordering tons of products to sell door to door or to family and friends.

They start the phone call with "Okay, Daniel. Remember the deal you showed me 2 years ago and we made a boatload of money. Stop what you are doing! I don't wanna hear No for an answer. I'm sending you the compensation plan right now. I am going to stay on the phone so I can point out why I am so excited and KNOW you will be ecstatic too. Did you see that ? That is the best compensation plan ever coupled with the least amount of folks we need to build this baby! Let me get you the link to sign up. Then you get on the call with Dolores. She is expecting your call. This is gonna be wonderful, Daniel. Call me back tonight after you speak with Dolores. Bye!"

That is the way they do it and it works!

Faith

fsloan
Thanks Faith, excellent leadership lesson for all to profit from.
And I should have also thanked FCM for posting that list. Thank you FCM.
(oh yeah, i did thank him previously, just not respectfully)
The mail from RTPR says FCM above "From" on the shipping label.
I love getting that FREE CASH in the mail, and a product that turns pain into profits.
Guess that's why he ticked me off by dissing them without knowledge.
My apologies for making it personal.

Just2ez, the relation to your biz was a general notion about how people join any business and claim to not make money but don't work the business to make money. I'm address the topic and not looking to attack anyone personally.

I'm familiar with the pain relief biz you are in. A friend of mine got the product and said it was great. Wanted me to get into it but I don't have any pains (Thank God), and I'm just not much of a physical product biz opp person because it's not the type of comp plans I prefer. However, I'm sure there are those that ordered product to sell, never sold any, and thus would fall into the category of an IBO that lost money, in their eyes. But it was not the company nor the product that caused that lost it was them or their lack of effective marketing for success.

We both know that true money in a networking business is in having a network. Not being the neighborhood product-man, as charming as that may be.

amberjones1986: balance is key, yes we are in business to make money, yet, when you have a passion about it (the product) it will take you far as well
You are on point. It's nice if the 2 of those things can come together. However, with physical product based companies, the cost of production, storage, shipping deduct from compensation requiring more people to make less money than compared to a digital based product biz and comp-plan (typically).

A good balance is probably being able to offer both to a potential prospect. As I'm all about multiple income streams.

But in reading your statement I couldn't help but think...I like increasing my "balance" in my bank account, and I have a "passion" about making that happen with my "product" which is Opportunity