To understand our plan we need to explain:
- what we want to achieve,
- what the problems are and
- how we have overcame the problems with previous compensation plans
Early plans
We wanted a compensation plan that:
- was fair to all
- rewarded the new member (by quickly returning the money they had outlayed)
- maximised bonus payments to all members
- rewarded members who worked reasonably hard with moderate incomes and
- allowed "serious" performers to make extraordinarily good incomes.
To do this we had to look at the existing plans in the industry and also at previous results.
A Brief History of Marketing Plans
Richard Poe, in his book "Wave Three" explained the flaws in various marketing plans.
Unilevels are excellent for immediate income and reward members quickly, but they are notorious for not generating large incomes to leaders who want to make a career from being involved.
Breakaways do not provide a satisfactory early reward to members although they can rewards leaders very well later on in their careers.
Matrixes sound great but breed laziness and have never been shown to work.
Binary plans sound great but are hopelessly difficult for leaders to "work" properly. As well, they are relatively (even very) unfair for members. They have also incurred the wrath of many authorities who have regularly closed companies down when they used a binary plan.
Hybrid plans are few, and have been shown to be very successful if properly done.
Our criteria
It has been well published that a fair compensation plan has to pay more than 50% return in the wholesale dollar to members. Anything less is unacceptable.
Furthermore, this return has to be in real terms, not manipulated like some companies who sell their members products at an inflated retail price and pay them a retail bonus as well as a wholesale bonus. Retail bonuses should not be included in company payouts, because retail profit should be collected by the members themselves.
Most companies manipulate their PV:BV:dollar ratios so that they seem to be paying a higher percentage (even higher than 50%). But in reality they are paying a higher percentage on a manipulated ratio. Which means you actually get a reasonably low percentage return on the true wholesale dollar, certainly well below 50% in the wholesale dollar.
So the first thing we demanded of our program was a 56% return on the wholesale dollar to members.
This was a real return because we use a 1:1 ratio on dollars and PV. We immediately knew that we would therefore be offering a better and fairer return than almost every other company in the industry.
We then set about constructing a hybrid plan that incorporated the best of other plans (and even something new and exciting).
Another important criteria was that the plan had to be simple so that every member could understand it easily. Members had to be able to explain the compensation plan in about 90 seconds. You might say that is impossible but we did it.
Furthermore, we wanted to make sure that new members could easily and quickly earn enough to recoup their initial cash outlay. This was a paramount aim.
The average, part-time member had to be able to make a few thousand dollars per year by working an extra few hours per week.
Most importantly, we had to reward leaders with an enormous income if they were prepared to commit extensively to our venture.
We have managed to achieve this in the following way...
Our unique and powerful plan
The main part of the plan is unilevel with very high payouts on the first and second levels. These payouts are available to all members. The net result is that it is very easy to recoup your initial outlay.
The middle part of the compensation plan allows excellent returns.
The real difference with our plan is that we pay to 6 levels deep and at that level we pay a very high 8%.
Why is that?
We want leaders to be paid very large incomes. The reality is that in this industry, leaders get most of their money from members in depth (not width). Therefore this "hour-glass" payment scheme really rewards leaders enormously.
Let us explain further with a hypothetical example.
Let's say that you sponsor 5 members and they sponsor 5 and they sponsor 5, etc. The numbers would be:
Level 1 = 5
Level 2 = 25
Level 3 = 125
Level 4 = 625
Level 5 = 3125
Level 6 = 15625
The first point to make is that with our plan you will recoup your outlay on a website by referring about 7 people to the program and helping them do the same. You make even more money if you do that within a month period any month (what we call the 'fast start' program).
The main issue is that you make more money at level 6 than level 1 (15,625 people compared to 5).
Everyone desires an hourglass figure
So we have made it desirable and very rewarding for people to build depth by making the deepest level of payment a very high percentage. This is revolutionary and we call it the "hourglass" plan. Click here to see how the numbers work.
As well we have installed a compression aspect to our program.
Unilevels traditionally pay equally to depth. The consequence of this is that the leaders are blocked (or disadvantaged) by people who really do very little.
Whilst we firmly believe that all members should be fairly compensated and rewarded, we also feel that leaders should not be disadvantaged by "sleepers". Our compression model has overcome this. Beginners get paid well and all members get a fair reward. But leaders get paid exceptionally well for the outstanding job that they do.
Most breakaway plans usually reward only those members who 'get in first', more than those members who get in after a little while. This is unfair and discouraging to those leaders who work hard but happen to get involved well after the initial start of the company. As well, new members (or 'beginners') can never obtain the maximum rewards.
Further to this, we needed a hybrid plan to reward the leaders. We overcame all problems with our 'pooled' bonus scheme which was based on worldwide sales. This rewarded those who worked at developing a large business, irrespective of when they entered the program.
The 'fast start' Bonus Pool rewards any member at any time with one share of this Pool for each five new members they introduce in any calendar month. This Pool is based on 4% of the entire worldwide sales of the Company for that month.
The other bonus Pools are for performers who have done the work and for those who continue to perform (leadership bonuses). Again these bonuses are a percentage of all the entire worldwide sales of the company and are shared equally between the leaders. See the compensation plan for these bonus details.
With these pooled bonuses there is no seniority or preference just because you joined earlier or later. Every leader earns equal amounts if they have done the same amount of work as other leaders.
This encourages all leaders to work together. Rather than being competitors, they can be allies.
You can see that we have been able to achieve something very unique in this industry:
A fair plan that rewards members at all levels.
With early compensation for new members and with huge rewards for all those who achieve leadership positions.
Check out our compensation plan.
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