Hello Everyone this is my first post here, I couldn't think of anywhere else to seek some help.
I am not good with maths and I am trying to work something out.
I am involved in network marketing and I plan on starting my own business idea with a multi level income plan.
I wont be selling anything, I will be giving something away for free and I am not pitching it here.
I need to know how much I will be paying out and if my idea is sustainable.
I will pay 10 levels of commission.
Each member introduces other members and gets paid a % on each level in their genealogy.
We will pay out as follows.
Level 1. 10%
Level 2. 9%
Level 3. 8%
Level 4. 7%
Level 5. 6%
Level 6. 5%
Level 7. 4%
Level 8. 3%
Level 9. 2%
Level 10. 1%
Each level pay a commission % to the number of levels above.
Say each person introduces 5 people and each person generates $10 per year, this is not a paid entry business or pyramid scheme, its all 100% free for everyone, no one pays anything to take part.
By my calculation I will be paying out a total of 55% but someone has told me I am wrong and now I am starting to think maybe I am.
If it is paying out to much then the idea is redundant.
Any help from those with greater mathematical minds than me would be greatly appreciated.
Thanks for any help in advance.