Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Yes and no. In most mlm compensation schemes, your override compensation is only calculated downward a finite number of generations.

So it is actually very common for someone at the top of the pyramid to have a smaller income than someone several levels below them. Because if you have a much larger team closer to you, you are getting a larger share of their revenue than the guy 5 levels up. In fact, he may be so far above you, that he doesn't get any share of your revenue.

In fact, I would say that your very earliest people usually earn substantially less than those below them who may still be actively working and building. (because the earliest may be retired or focusing on other things). The compensation schemes are built this way to keep people from simply resting on their laurels and not building anything of value after finding a few good men.



Consider applying for YC's Summer 2026 batch! Applications are open till May 4

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: