I recently saw some interesting numbers about a handful of Network Marketing compensation plans. The comparison took a business built in the suggested method with 5,000 points of volume. You will see that most companies do not pay very well on the front end (if at all). Feel free to do your own research evaluating the compensation plans listed here.
MonaVie
5,000 Points
Approximate Wholesale Cost of Product: $6,000-$12,000
Personal Order: $220
Bonus: $316*
Percentage Paid: 5.2%
Compensation Plan: Binary
(Bonus money is assuming that volume is perfectly balanced, in most cases it is not)
Efusjon
Approximate Wholesale Cost of Product: $5,000
Personal Order: $120
Bonus: $71.30*
Percentage Paid: 1.2%
Compensation Plan: Matrix
(Some associates carry multiple positions (up to 15) so the personal order might be significantly higher)
Arbonne
5,000 Points
Approximate Wholesale Cost of Product: $7,462
Personal Order: $149
Bonus: $196.61*
Percentage Paid: 2.6%
Compensation Plan: Stair-step Breakaway
Xango
5,000 Points
Approximate Wholesale Cost of Product: $6,000
Personal Order: $120/$240
Bonus: $300*
Percentage Paid: 5%
Compensation Plan: Straight Unilevel
EIRO
5,000 Points
Approximate Wholesale Cost of Product: $5,617
Personal Order: $140
Bonus: $1216.73**
Percentage Paid: 21.6%
Compensation Plan: Unilevel Hybrid
* Payout based on compensation plan perspective.
** Actual average payout to those with 5,000 points.
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Hi there,
I liked what this blog unveiled to the readers. It shows the disparity between the sales generated and the amount earned by distributors. Any serious networker should know these stats..
Sincerely,
Verniel Cutar
fyi efusjon doesnt pay on "points"
i would like to know where you got your numbers? commision is 4.25% of sales and 1.25% for overlap. you get paid this rate for everyone in your matrix.
***The numbers are simple. $120 is the volume requirement. The pitch is "get 3", so if you get 3 x 120 that is $360. $360 x 4.25% = $15.30. Then you need another $4650 to make $5,000. $4650 x 1.25% = $58.
$58 + $15.30 = $71.30
You earn $71.30 for $5,000 in volume at Efusjon.***
Thank you for this compensation comparison. It is one of the reasons that I got involved with EIRO Research.
This information is a must for anyone considering these companies. Thank you once again for doing the research.
Thanks a lot blogger for your such a informative tips . I am very much happy to read this . Yes you are right , most of the networking companies doesn’t give sufficient compensation to the victims in injury .
http://oopslaw.changjy.com/2009/09/18/helpful-info-to-make-accidental-compensation-claim-hassle-free/
Ty your missed a NWM Icon–Forever Living Products
5,000 pts(wholesale) is actually 8777.93pts because Forever pays on RETAIL
Personal Order $132.00
Bonus $1578.94
Payout 31.57 Percent of Wholesale(apple to apple)
Comp Plan: Stair-Step
31 years and 2.5Billion annual in sales not too shabby.
If you have any question you have my email
Chris Turpin
Forever Living own site states that the company pays something like 8 to 18%, far from 31%. Retail markup was not included in any of the information.
ty
Here is the link
http://distrib.foreverliving.com/marketing/pageDisplay.do?page=bonusPlan&siteID=USA&language=en
It clearly states that We PAY on RETAIL PRICE(sales).
When you compare our retail bonus to others wholesale(or below) bonus 31% is very realistic and is payed out.
31% is the retail mark up, not what is paid out…
It clearly says that the bonuses are paid on retail sales.
I’m confused at why you couldn’t read that. please help me to understand.