Unless you are starting your home business from scratch, just about every business model out there provides incentive compensation for existing home business "members" to bring on new members to the opportunity.  In fact, this incentive compensation is what makes the home business model so attractive.  Where else can you get paid for basically recruiting people like yourself and introducing them to a business that you are excited about?  Even the home business models that thrive on selling products that owners stock in their basements, whether you want to call it incentive compensation or not, require new members/ owners to make investments in products, and to frequently update their stock.  The purchase of these products provides a profit to the individual who initially introduced this home business owner to the home business opportunity.   

Anyway, long introduction to the topic... I was asked today the difference between a pyramid model and the "release" model that the home business opportunity we entered into uses?  First, to explain the "release" model, new members to the business are required to make five sales prior to becoming "qualified."  Once qualified, they are in a position to make money just like any other business owner leveraging the same home business model.  The new member is in an equal money making position as any other person in the business, and all of their profits go directly into their pockets -- no profit-sharing with anyone else, ever.  The pyramid model benefits those who first got into the business -- or are at the top of the pyramid -- because everyone that comes into the business below/ after them must share their profits with people above them in the pyramid.  As you can imagine, if there are a lot of people in the business it's going to drain your profits significantly.  In addition, there is no release from this model -- at least none I'm aware of.  So, you keep splitting your profits indefinitely.

So, obviously, in a comparison between the Pyramid and "release" model, the "release" model is far and away the best for the business owner. 

Now, the next question is always, "why is there an incentive model in the first place?  I don't want to give away anything and want to start earning immediately when I get into the business."  This is an understandable view.  I, like most people, don't like giving anything away.  However, when you look and think about the logic behind the compensation model you better understand the reasoning.  First, it's how the people (older members) who bring on a new member make money, and it's the way the new member will eventually make money.  Second, it encourages the older member to help the new member to be successful because it benefits the older member if the new member makes sales.  However, this also benefits the new member because the older member is helping to train and mentor the new member in the selling system and the nuances of the business.  Once the mentoring period is complete, and the new member is "released", the new member has a much better chance of being successful with the selling model, and with their business in general.  And, third, it benefits the founders of the business model because then they can be assured that new members are well trained and are representing their products fairly and honestly.

Bottom line, if the incentive model is fair, and you are getting training in return, it's better to have an incentive plan then not to have one (I’m talking the “release” model).  I can not imagine being successful by just jumping into a new business opportunity with no people support, without understanding the products, without having a vetted script and set of advertisements, and without a proven sales model.  The time to get up to speed and making real money without support is going to be significant, compared to a supportive business model.  And, we all know, the best way to encourage support is to incent people to provide it.