Network Marketing - A Business Opportunity
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This information is meant
to serve as an example of a succesful network marketing
organization. Please refer to your own company's Policy and Procedures manual for detailed
Network Marketing is a growing $60 billion dollar industry. It includes
millions of independent business people just like you from all over the world. In the
United States, one out of every four people are either distributors or consumers of
network marketing companies. These network marketing companies account for over
$18 billion in annual sales!
How Network Marketing Works
The goal is to proactively bring products and opportunity directly to
the market by helping independent associates of your organization use the systems
and marketing techniques that have already been proven to build the fastest and
largest organizations in the industry today! The system is designed to maximize marketing.
The entire focus of the plan is to develop five key people ... five people ... to learn
and implement the system ... who then become confident in teaching the system to their
The following chart is only an example of how a successful network marketing compensation process works and does not indicate nor imply any form of gauranteed structured compensation. Each individual's results will vary depending upon self-committment and self-motivation.
An Example of a Successful Compensation Process
Amazing isn't it!! The table above is an example of what can be achieved based on a $100/month personal volume and a network organization staffed with people who have a strong motivation to pursue this as a business. Each Independent Associate's results may vary.
The numbers can get overwhelming but remember, all it is ... is working and developing just five motivated people who then develop five more people ... and so on. But also, by adding consumer sales to the equations in the table above, well, you can see how your commissions are capable of growing quite substantially!
The rest of this page is based upon the example shown above and is presented to demonstrate the functionality of an infinity-based, unilevel compensation plan. Remember that this is only an example. Each person's results will vary according to their company's policies and the amount of dedication they put into their business.
A Compensation Plan
In designing a compensation plan, it is important that the system you use incorporates the following:
The following is called the "front-side" of a successful compensation plan.
A Unilevel Compensation Plan
The first two levels consists of everybody those two people (or married couples and/or corporate entities) you signed on bring in and everybody they bring in. So to explain, say you sign up John Doe and Mary Smith. And John and Mary sign up 10 people. Then those 10 people sign up 10 more people. You earn commissions on the sales of 22 Associates; John Doe and Mary Smith and the 20 people underneath them. Look at the example presented in the chart below.
NOTE: The percentage figures in the chart below are presented as hypothetical examples for this discussion and are not indicative of any payment form for any company. Refer to your own company's policy manual for specific figures.
You can make your structure as wide as you wish, meaning you can place as many people as you want on each level. You can place John and Mary on their own levels ... level one and two. Or, you can place John and Mary on Level One, leaving Level Two still open to be filled. You can have 1 person on one level or you can have 10 people or more on one level. Regardless of the width of your structure, at a monthly commission qualifying order of $50, you will be paid commissions two levels deep. As you can well imagine, this alone can generate quite a handsome income stream on a monthly basis!
As your organization grows down four levels, you can now qualify for a higher level of commission payout with a $100 per month qualifying product purchase. But remember, your organization has grown to where you are going to be paid back much more than the hundred dollars you spend on a monthly commission qualifying product purchase. When you have four levels, say five people find five more people, who find five more people, and all the new Associates those people bring in . . . your four levels can grow from 25 to 125 to 625 people. There should be no restrictions to your width, so you have a geometric growth pattern to your organizational structure! Imagine the explosive growth that happens when you have all six levels filled!
A Fast Start Autoshipment Bonus Plan
Your system should incorporate an Autoship Bonus Plan. Being on an autoship plan can not only maintain your commission qualification in most cases, but should also pay you a bonus on new Associate sign-ons.
An example is as follows: Anyone that's on an autoship bonus plan at $100 or more per month of product purchase, should receive a bonus payout on each new Associate they sign on; based on the total sales volume amount of each new associate. When you sign on a new associate, you should receive a 25% bonus of their product purchases. You should also receive a 25% bonus on the product purchases of whomever they sign on. This is how a good autoship bonus plan works. At a level of $50 dollars yet under $100 (per month on Autoship), you should receive a 12% autoship bonus. These Autoship bonuses should extend for the first two months of each new associate that signs on within your own network organization.
The Fast Start part of this plan is when you see money coming into your possession for the first two months of signing up each new member to your network!
The following is called the "back-side" of a successful compensation plan.
A Leader's Bonus Plan
A good parent company uses high-tech automated account tracking computers that automatically keep tabs on each Associate's independent organization. When the tracking system sees that you have qualified for a leader's bonus plan, you are moved up the levels automatically. You should then be paid throughout the width and depth of your network on each person who has also qualified and is now a member of the same leader's bonus plan ... and you are also paid on their entire organizations.
As an Associate, you may have been earning commissions on six levels ... as wide as you wanted to structure your group ... but only six levels deep. Once you become a part of a leader's bonus plan, you are capable of earning commissions throughout the entire width and depth of your organization.
percentage figures in the chart below are presented as hypothetical examples for this
discussion and are not indicative of any payment form for any company. Refer to your own
company's policy manual for specific figures.
Think of the possibilities!