Compensation Plan by a Professional Networker

Posted by Julian Lee
4
Jun 7, 2007
861 Views
To be successful in this industry you need a plan. This won't necesarilly be the plan that gets you there but It's a starting point. You have to start somewhere. Even the largest meal is eaten on bite at a time.

When you understand and know how to maximize your compensation plan you can create the right plan of action. Over time by using the plan, do and review method you will learn and adjust just like a gyroscope guiding a space shuttle to the moon. Here's a simple formula that you can use to know what it takes to build the income you desire in your respective business. Keep in mind that all compensation plans are not created equal in that they can reveal the right or wrong road that you have to travel to success.

It doesn't matter what type on compensation plan your company has this formula will work to let you know what you're up against wether it is a matrix, uni-level, binary, etc. Find the average amount that you will make on each member in your organization based on their autoship. I do not include fast start bonuses because they aren't true recurring income. I'll use the example of a 4x7matrix that someone pitched me on recently. In this example the minimum order on autoship is $100 to get a check in this plan.

level 1= 2% $2, level 2= 3% $3, level 3= 5% $5, level 4= 5% $5,

level 5= 6% $6, level 6= 6% $6, level 7= 8% $8.

If you add all the percent numbers up then divide that by seven you will get 5. So this plan pays an average of 5% in the pay line ($5). Simply divide the average amount per level ($5) into the amount of income you would like to make let's say $10k per month and you will get 2000. So in this plan you need a minimum of 2000 people on the minimum amount of autoship to make $10k in recurring income.

Ask yourself this question. If I can make that same income in a plan that only requires me to have say 1000, 600, or even 400 members. Who do you think have better chance of success. Just by the numbers alone a company that pays $10k with 400 members pay out of a higher percentage per member. There are companies out there that you will need to have 4000, 6000, 10,000 members in you organization to make that same income.

Now that you know what you're up against you can create your plan. if you have one then you need to adjust it. PLAN what your steps will be daily to build your business. DO the neccesary actions steps outlined in your plan, REVIEW what you have and have not done at the end of the week and adjust. This philosophy will help to guide you to your income goals.

If you are still having difficulties analizng your compensation plan please feel free to contact me and I'll help you to figure it out and devise a plan.



Julian Lee

"Be a Mentor With a Servants' Heart"

julian337.successin10steps.com/?mad=10280


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CHRISTY
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