New poll on the top right:
Say Lulu orders $100 of product with your company, through your number, as a regular customer. How does what you get compare to what others get?
This can be tricky. Things may not be what they appear.
1) Many companies have minimum purchase requirements to get paid at all. E.g. if you have to buy a minimum of $125/mo of product each month, in order to qualify to get paid on your sales, that makes it harder to come out ahead than someone who has no monthly minimum purchase requirements, yes?
If you use all the product you buy, great. But if you’re starting to store it, then you’ll have to sell more for your 10% (say) to come out ahead.
2) I used dollar amounts here. So if you’re on a points system, or PV or BV, where what you sell in dollars is more than what you’re actually paid on (e.g. you get 30% on 80% of the amount of the sale, etc.), calculate the real dollars you get on this imaginary $100 product purchase. This is $100 dollars, not points or PV/BV. OK?
See how your pay for bringing in a customer order compares to others.
Next, we will do the same poll for bringing in recruit orders.
Results might be very different. Most companies place their emphasis on recruiting, so most of the money is paid out on those types of orders. Not all of course, but most. That’s been the business model for the last 50 years.
So depending on what you want to do, gather customers or find recruits, may as well see how your pay compares, yes?
This poll will last one week. Recruiter pay poll next.
Hi Kim…I just joined a new company in it’s ‘soft launch’ phase…I’ve come in very close to frontline to the company.
This company makes health products that are hologram bands worn on the wrist or ankle (for recovery, pain, mental clarity and stress) and hologram discs worn on clothing (for energy, sleep or pain). Safe for children and pets, too.
A month’s supply of any of the above is $35 wholesale, of which I make 25%, or $8.75 (pv=35). If someone were to buy 3 different types of bands or discs (totaling $105), I would make $26.25. If they buy directly from my site and pay the retail price of $40 for a month’s supply, I make the additional $5 per type purchased.
This company also offers an economy pack at a reduced price, available to customers and distributors. It is a month’s supply of Energy discs, Sleep discs, Clarity bands and Relax bands…for $115 vs. $140, a $25 savings. My commission is still 25% (pv 100=$25), and if the customer pays full retail online, I make that difference as well.
Additionally, as a distributor I can make a 25% rebate on personal purchases over 100pv, which kicks in at 105pv. So for example, if I personally purchase 200pv in one month, I will earn $23.75 on the extra 95pv. The more purchase, the greater my rebate.
Customer commissions are paid weekly, as well as Fast Start Bonuses. But that’s another story, until you open up that subject for discusson.
Thanks for the opportunity to explain this generous pay plan! If anyone has any questions, feel free to contact me at:
karenohandley@cox.net or give me a call at (760) 940-9022
Warmest Regards,
Karen
I sell at retail, so if Lulu spends $100 with me, I get $50. I usually have some kind of free premium incentive for them to sit down to try the product with me which costs me no more than $10.
If Lulu orders $100/month from me, I will make $36.
And I have your book, Kim, so I know that once I am able to find 100 Lulus, I will be quite pleased with my income! And 300 will be even better :).
I love your focus on retailing because it’s just logical! In my company, if I sell $100, I’ll earn 25 if it’s a preferred customer (on autoship). That is, IF someone could order products totaling $100, but they can’t. Since there are only 2 products and each product costs $69 for a month, I earn 17.25. per product, per month. I have several customers that have their spouse on one of the products too. SO Simple. I’ve found that people stay on the products because of their often astonishing results and since it’s a monthly supply, the autoship works really well. They cannot get overstocked or run out and I don’t have to resell to the same customers. After reading and listening to your training, I have a goal of 1000 preferred customers in less than 3 years! 🙂 Still lots to learn though!
For a $100 order I earn $25. No points, no different prices, no 3 page comp plan.
Robin
http://www.wholefoodandmore.com
If a customer orders $100 from me I will make $30.
However, if it’s a week that I’m at diamond pay level (which I am often), I would make $37.50 or more.
If I were at Ambassador pay level, I would make $45
Presidential pay level would be $52.50
Roxanne
You’re right Kim, this is a bit tricky to figure out if you’re talking ONLY retail customers for the company I represent.
A retail customer doesn’t need to spend $100, but since that’s the imaginary number we’re working with, let’s start with 3 Retail options the company offers:
1. For the customer who doesn’t wish to be on autoship, there is a Retail account for a one-time purchase of $25. Whenever more product is needed, the customer simply places an order, but the minimum is $9.25. That $25 Retail account earns a one-time commission of $14.60.
2. For the Autoship Retail customer, there is the $9.80/month option with a commission of $3.60; or the $24.50/month option with a commission is $9.00.
3. The Retail Package Plus option, which is a one-time purchase of $99, pays a one-time $20 commission, and there is a suggested autoship of $24.50/month.
So, IF a retail customer were to order $98 worth of product (as close to $100 as I could get for simplicity’s sake), here’s the math:
$24.50 x 4 for $98 worth of product, pays a commission of $36 ($9 x 4).
Of course, if I were to just sell 4 Retail Customer accounts per month (no autoship) at $25 each, the commission would be $58.40 ($14.60 x 4).
Whew . . . thanks for making me figure that out!
If Lulu buys $100 worth of products from me as a retail customer I’ll earn approximately $39 in commission and bonuses.
A new person would probably only earn $25 but you asked what I would make.
Thankfully I have lots of retail customers, both new and loyal which my company encourages, so it adds up nicely by the end of the month.
I only came by to see what everyone else posted in their comments. I’m happy to see it looks like we are comparable.