I know Powerlines have been tried before and unsuccessfully from my understanding (if anyone can introduce me to a MLM company that uses a Powerline and has been around for more than 5 years, I would appreciate it).  Lately, it seems there is an explosion of Powerlines.  I can names five relatively new companies, Xyngular, GBG, Skinny Body, Yoli and One24 that are using the Powerline system (true there are differences in these company’s compensation plan but all 5 are based on the one line concept.).

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The benefits of a Powerline is that everyone goes into one line and you are paid commissions on everyone who joins below you and even above you.  Basically you are paid on four components:

1.   A percentage of the total volume below you.

2.   A percentage of the volume consumed by those you personally sponsor.

3.   Sharing of company total revenue (which is how you get paid on volume above you).

4.   Additionally, your personal percentages go up depending on how many personal sponsors you have.

One obvious advantage of such a set up is that you will make some commissions eventually even if you never sponsor anyone.  Of course, do not expect to make a lot, because if you have not sponsored anyone, your percentage is very small.

These type of systems are easy to explain and attract people to join because it creates the illusion that you can make some money with little effort.  In reality this can be a huge disadvantage because you can attract lazy people who want something for nothing.  They do not want to work and would rather just have people put under them. Thus, creating a situation where many people get very small commissions, get frustrated and leave.  I have never been in a Powerline company but I hear that turnover is crazy.

The one obvious benefit is that everyone is encouraged to work together promoting the company.  There is still some competition between who will personally sponsor someone but that exists in every company.

The part I like most about Powerlines is no one is left high and dry.  It is sad reality of most compensation system that someone is almost always left in a weak position.  Their sponsor does not give them enough support, they are on a weak leg and thus do not get the coaching they need to succeed.  Obviously, this does not affect the strong alpha leaders, but in all companies there are middle of the road people who with the right guidance can make a success of it.

Overall, I am impressed with the Powerline concept and would join a Powerline company.

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Tags: MLM, online business, Powerlines