Thanks all for the replies on the previous post on this. Let’s do this again.
To enable people to compare pay plans please provide this information:
1. The amount of the average customer order in $ (assuming it’s an auto-ship type order, where they get the best customer price, and it is shipped from the company to the customer.)
2. The dollar range you earn on those orders, e.g. $2-70/order (depending on your level), and the percent that is of what the customer pays. (BV/PV folks have to convert to dollars.)
3. Include only auto-ship type orders. I don’t mean the one-time retail order override that you personally collect from customers, or only get once. This exercise is to compare income from customers (reps included) who receive orders from the company on a regular basis.
This way people can compare oranges to oranges.
One format for your response:
The average order is $____/mo
They pay us $XX to $YY on each order
So to earn $500/mo, we need to get X customers (or X customers/reps)
NOTES:
1. If you have to get a certain number of new customers each month to earn $500, that is very different from working to get repeat orders, where once you have them, they provide repeat income. I am talking about repeat income in this exercise. OF COURSE include downline reps in the equation for your $500/mo if you want.
If you are customer-inclined someone will want to know how many customers they have to get to earn $500/mo and what the percent actually is. One pay plan might pay say $7 on a customer order of $100 monthly, versus another that pays $7 on a monthly order of $39. Big difference IF getting customers is your thing. No matter if your focus is on recruiting.
You ready?
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Hi Kim,
To earn $500 in my company, you would need to have 2000 p.v. (point volume) and you would get paid 28%
The average customer orders between 75 and 125 p.v. The average distributor orders between 200 and 500 p.v. So, to earn $500, you would need 3 distributors at 300 p.v. and 9 customers at 125 p.v.
Cheryl
Eliminate toxic cleaning products in your home. Go Green! Get your free sample at: http://www.greenandsmartclean.com
The average order is $37 a month.
They pay us a $6 mark-up plus a $6 commission (21% level) on each order, for a total of $12.
So to earn $500 a month, we need to get 42 customers ($12 x 42 = $504).
Paul Eilers
http://www.UptownNaturalsNutrition.com
Well Kim, I’ve just used your formula and found out I need 76 customers on my TLC Artist Choice autoship to earn $500 a month.
The average order is $39.75/mo. They pay us $5 to $10.50 on each order, depending on our level in the company. So to earn $500/mo, we need to get anywhere from 48 to 100 customers.
Michele
http://www.Michele.CurtinCapital.com
1. $36 per month, that is all you can spend with PPL
2. $36 to $250+, depending on your pin level, for 1st year advance commissions (ie 12 months). The company uses $100 as an average 1st yr commission, which assumes a very low pin level…good for them. I will assume $120, still very low, which makes the math easier. So, $120 divided by 12 equals $10 month for the first year, and 20% or $2 month for residual beyond the first yr, willable down two generations. So, to get $500 in residual monthly income would require 50 members in their first yr. In theory, and this is a key, you learn to earn a full time income in PPL,then you work full time for 5 yrs, and then you have that same income without working anymore at all. This is all your own effort, without any downline. Prepaid Legal is an outstanding opportunity in my biased opinion for the individual who wants to be customer oriented. Prepaid Legal only added the mlm comp plan after 15 yrs of business as a retail product, and when they added the mlm aspect they did not lower lthe retail sales commision. Ha!
All the best,
glennjaffas@prepaidlegal.com
This example only includes front-level customers (Rewards Members), no downline reps….
The average order is $126/mo
They pay us $24 on each order
So to earn $500/mo, we need to get 21 customers
http://www.tni.com/ilka
Name: Ed, company: USANA
The average order is $100/mo. (like any company, dependent on which products you focus on, I focus on a combination of nutritional supplements and foods)
They pay us $8-16 on each order.
So to earn $500/mo, we need to get between 31 and 62 customers/reps (depending where our pay falls between the $8-16/mo per $100 customer).
Here we go (assuming an autoship order):
The average order is $100/month. They pay us $15 on each autoship order; to earn $500/mo, we need to get 33 customers.
Hi All,
In my company the average order is $75.
They pay us $15-$45 on each of these orders.
To earn $500/mo you would need to get 34 customers.
I am looking for people who would like to earn that kind of money.
Bobbie
Company: Max International
The average order is $66/mo
They pay us $16.50 on each order
So to earn $500/mo, we need to get 30 customers ordering just one box or 15 customers ordering two boxes (which happens most of the time…husband & wife…one each).
Matthew
http://www.mymaxfire.com
Hi Kim,
I thought this would be easy and quick. I just discovered it’s not easy to figure how to make $500.00.
My Power Mall (http://www.RosePowerMall.com)is an online shopping mall where the merchants pay a percentage or, sometimes a flat amount on each transaction. My Power Mall does not have autoship, monthly requirements to get paid and all the other hoops we are accustomed to having to jump through.
We get paid on 9 levels and shopping is voluntary.
If I give malls away to 10 people and they each give away 10 malls and everyone buys only $150.00 per month I would make $365.64. Taken down one more level I would have 1000 malls under me and my check would jump to $4,200.00. This is based on an average of 8% paid by the merchants and all 1001 people spending $150.00 each month.
There are no perfect shopping teams so results will vary. This is the only time I’ve spent on this. Nobody has asked me how to make $500.00 I just spend the time I have offering free malls knowing it is getting better daily.
Shopping provides repeat income every month.
We will have a debit card very soon which we can use in our local grocery stores, gas stations, restaurants or almost anywhere. I don’t think anyone will be asking how they can make $500.00 then.
I know this is not what you wanted and you may not want to use it.
I am very, very proud to be able to offer this business for free.
It is a way for those who are willing to try one more time to finally be successful. After all, everyone buys groceries.
Happy Shopping!
Hi
Good question and many funny answers with PVs and so on…
How to earn $500 in my company is easy because every bonus is on retail.
I get 48 % on my Customer when I send out the products and 38 % if the Company sends it.
Avarage order is $70 pr person. So I need 19 customers if they order from Company or 15 customers if I deliver the products.
I deliver to most of my customers and they often place an order for to or tre months.
Keep up the good work 🙂
Stig
Company – ONE Group (Organic & Natural Enterprise group)
The (company) average MiSpa Party order is $113
This pays $34 at 30% per order
To earn $500 month you need 15 MiSpa Party customers
Repeat orders as preferred customers on the same average, pays $23 @ 20% per order.
To earn $500 a month you need 22 repeat customers
kristine.mionegroup.com
For my company the average order is $127/mo.
They pay us $25 – 20% on each customers order (or $9 – 7% on each customers/reps from second generation).
So to earn $500/mo, we need to get 20 customers (or 56 customers/reps).
Kim, thank you for the important topic.
One company I’m considering joining: Vitamark International
Standard Autoship Order = $160 plus shipping
Company pay out for a Platinum Associate = $40 each order (but the first order doesn’t count)
Therefore 14 Customers = $520 per month
(Note: Gathering 2 customers per week could yield $53,040 per year. The cost to become a Platinum is $499.)
Doesn’t sound too shabby, does it?
Steve
In this company (in which you can figure out what it is) I work with, here’s the following information:
1a. Average customer order is $19.95.
1b. For every rep/customer enrolled, they pay $95 initially and $50 a month thereafter.
1c. This assumes that the company doesn’t have any of those specials (usually during a solar eclipse) AND the rep performing the transaction doesn’t collect a six month advance payment, which I don’t believe in doing based on my accounting background.
2a. For every order made by a customer, $5.985 is paid on commissions (30% of $19.95).
2b. For every rep/customer enrolled, the sponsor earns 30% of $50, that is $15.
3. Customers/reps are assumed to be on autoship.
To make $500 per month in revenues, there are three options that you can do.
For customers alone, you must close 84 sales.
For 80% ($400) customers and 20% ($100) customer/reps, you must close 67 sales on customers and enroll 7 reps/customers.
If you’re just interested in recruiting, each person who enrolls a rep/customer is paid $15. So one must enroll 36 customers/reps to earn $500.
Overrides earned on downline are excluded.
Just to inform you that the “new school” is here to place more focus on getting more customers instead of enrolling reps because customers are on the top of your list in your business (as Kim emphasizes over and over and over).
My two cents,
Sidney
http://www.e-dental-plus.com
http://www.youarecovered.net
Hi Kim,
I am testing this as well this is my first time replying to the blog I finally think I got it! heee
This was interesting to think about because we have alot of product lines in the mall without walls that are all market driven.
So if you have 16 customers on $100 auto ship per month this would give you about $500 a month maybe more. We get 30 to 100% retail profit depending on the product line. Our internet store you can sell one website and make that in a day. It just depends on what store you focus on. That is just the retail wholesale end. If you do base ten seven strong with reps and Business Volume on that same order you could get at least 900 in BV just from yourself and any personal use. Then if you have any reps in your group then your talking more weekly or monthly income. We get paid 100% of what our team does in our pay plan we work in depth. The system shows you how to work with the Unfranchise and this does not include our portal where we get paid on anything we purchase, I just got points from my portal from buying something for my Dance studio for supplies at officemax, I also got points from Peopod with my grocery shopping so I am not doing anything different that I normally would do to earn the Extra bonus in Incentive Business Volume. We also have Voitel that we just partnered with At&T and Verizon so we can also get paid on our monthly phone bills with Voitel if we have high speed internet. We love to help people change the way they shop.
Thanks for helping me break this down and realize again why I do this business!!!