Sunday, July 13, 2008

Comp plan basics

We've been talking about basics for a few weeks. Nothing is more basic in a network marketing business than the compensation plan. If you can't figure out how to make money, why work the business?

I have been in four companies. Each time I moved there was a good solid reason. We do not jump from company to company. One of the companies had such a confusing comp plan I never could figure it out. I would tell people "I just keep signing up people and the company keeps sending me money!" Pretty poor plan.

When we first saw THIS business I said "I want to use your product, but I don't want anything to do with your business." Then people started asking us how we were losing weight and I would enroll them and send them on their way with a box of products. I wasn't trying to build, but many of them loved the product like I did and started sharing with their friends. It just grew.

Then I had to eat humble pie and call up the people who showed us the business and ask them how to actually make enough money to pay for our products. Wow was I surprised at how simple it was.

YOU use 100 BV (or more) worth of product every 30 days. This is not a calendar month, but every 30 days. You personally enroll one person on your right and personally enroll one person on your left who also uses 100 BV (or more) worth of product every 30 days. This qualifies you to be a consultant which means you get to bank all of the points that happen under you whether you enrolled those people or not. When you have 600 BV on either side and 300 BV on the other side you cycle. At the end of the week the cycles are totalled. One week and two days later you are paid approximately $54 for each cycle.

By the way, if you order more than 100 BV in a 30 day period, everything over the 100 will be added to which ever side you need to make a cycle.

Say you help each of your two to enroll two. Then you personally enroll two more. Then you help those and meanwhile your first two enroll more. Will everyone do this? NO. So work with those who want it and don't stop with enrolling your first two. Soon people are showing up in your business that you do not know. It is possible for people above you to place people below you. Sometimes this happens, sometimes it doesn't. No matter. YOU are the one that can make the major difference. One big key is to help your personally enrolled make money. They tend to stay if they are making money. Another big key is to teach your personally enrolled to help their personally enrolled make money and teach them how to do the same. If you are the only one helping everyone it will become too overwhelming.

When you are a "paid as" consultant you are eligible to be paid on all of the weekly volume under you until you are making $13,500 a week. You can match that amount in an executive bonus every week. You qualify as executive if you have 5 personally enrolled consultants on each side. As a "paid as" executive you make 10% of your personally enrolled consultants weekly commission.

That's it. Pretty simple isn't it.

The one important rule to remember is to keep yourself with 100 BV or more every 30 days. You do have a few days of grace period, but if you don't make an order you lose your banked points. At the beginning you might not always have one personal on the right or the left who is ordering, but if you keep ordering and enrolling you'll never lose a single point and you will get back into qualification.

There are other ways of adding to your income such as retail profit and product enrollment bonuses. But those are one time events. Nice, but not residual income. Most of your money will come from the team bonuses and executive bonuses.

One thing I love about this plan is that there are no pay levels. You are paid on everyone. When you find someone willing to go to work, even if they are on your 1000th level, you can work with them because you are paid just as much on them as on someone on your 1st level.

So keep on giving out tools and doing 3 way calls. The only way you can lose is to quit.

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