ANALYSING COMPENSATION PLAN Join me
Come Join This Company… “We pay HIGHER commission.” “We create MORE millionaires.” “We earn FASTER.” “We have a LOW sales requirement.” Why MLM
Why are you in Network Marketing? The Principle of Leverage Small effort BIG Reward Your network Exponential
The Principle of Exponential Growth It Takes Time The Principle of Exponential Growth 3 to 5 years 6 months 1 year $ Higher
Come Join This Company… “We pay HIGHER commission.” “We create MORE millionaires.” “We earn FASTER.” “We have a LOW sales requirement.” 40%
Is 40% too low? 100% 25% 10% 20% 40% The Cost of Making the Product. Profit 10% Taxes 5% Admin., General, R&D 20% 40% Distributors’ Commission
So, 60% better than 40%? 5% The Cost of Making the Product. 100% Profit 10% 5% Taxes Admin., General, R&D 20% 60% Distributors’ Commission Overpriced
Poor or Overpriced Products $80 $400 Each costs $20 5% 25% 40% 60% to distributors to distributors 20%
Never SHORT CHANGE distributors So, Why Not 20%? Market equilibrium: - What do RETAIL brands spend? - What do COMPETITORS pay? Never SHORT CHANGE distributors So
I prefer High Quality products at Good Value So, how do you handle… “We pay HIGHER commission.” “We create MORE millionaires.” “We earn FASTER.” I prefer High Quality products at Good Value “We have a LOW sales requirement.” Millionaire
Come Join This Company… “It pays HIGHER commission.” “We create MORE millionaires.” “We earn FASTER.” “We have a LOW sales requirement.” Lot to Few
Paying a LOT to a FEW Top Leaders Average Distributors Few People Many, Many People Average Distributors Why unfair
Why Are Most Plans Unfair? $ 100,000 $ 20,000 $1,000 $100 $100 $5 So
I prefer many “Thousanaires” in my downline So, how do you handle… “We pay HIGHER commission.” “We create MORE millionaires.” “We earn FASTER.” “We have a LOW sales requirement.” I prefer many “Thousanaires” in my downline Faster
Come Join This Company… “We pay HIGHER commission.” “We create MORE millionaires.” “We earn FASTER.” “We have LOW a sales requirement.” Illusion
The “Fast” Illusion 1. Upfront Inventory Loading 2. One-time Upfront Payment, e.g., fast start bonus UNSUSTAINABLE So
I prefer Sustainability to Speed So, how do you handle… “We pay HIGHER commission.” “We create MORE millionaires.” “WE earn FASTER.” I prefer Sustainability to Speed “We have a LOW sales requirement.” Low
Come Join This Company… “We pay HIGHER commission.” “We create MORE millionaires.” “We earn FASTER.” “We have a LOW sales requirement.” Good?
Is a Low Requirement Good? Too Low a requirement: - You take a long time to build leverage. Too High a requirement: More time selling than building network. High drop-outs. The Right Balance: - How many customers do you need to consume the volume required? 100 pt
The USANA Sales Requirement 100 volume points = 1 family’s consumption You + 2 other customers or So
I prefer a reasonable requirement where everyone contributes So, how do you handle… “We pay HIGHER commission.” “We create MORE millionaires.” “We earn FASTER.” I prefer a reasonable requirement where everyone contributes “We have a LOW sales requirement.” Summary
The USANA Compensation Plan… “Pays LUCRATIVE commission.” “We pay HIGHER commission.” “Distributes income FAIRLY.” “We create MORE millionaires.” “Builds SUSTAIN- ABLE income.” “We earn FASTER.” “Has REASONABLE requirement.” “We require LOW maintenance.” MLM Insider
The USANA Compensation Plan #1 - Fair - Helps the Average Person - Builds you strong leverage Average must succeed
If the average person in your downline cannot succeed… You will forever be rebuilding your lever 1 year 6 months $ Elephant
The “Run-away Leg” curse? It will happen! You want a “run-away” leg – it’s half way to your financial independence! How to Build
How to Build Your USANA Network (1) Start Off With 3 BCs 100 Autoship 3BC Kit 200 40 60 OR Discount, Free DLM, Accumulate 400 PSV over 6 Fridays 2 or 4 legs
How to Build Your USANA Network (2) Decide how many legs to start off 4 Legs or 2 legs 001 003 002 1 3 4 2 5 7 8 6 9 11 10 12 001 003 002 1 3 4 2 5 6 7 8 Look for Gold
Look for Your “Gold” downline Stubborn Clueless GOLD! Fearful Treasure your “Gold” like …GOLD! Balance Leaders
Look for your Next GOLD… Stubborn Clueless Fearful GOLD! 5 To succeed in USANA’s plan, you have to balance your leaders, not your points. 6 7 8 Worth It?
Building Residual Income 4 2 1 3 002 003 YOU Max any 2 legs weekly: S$8,000 per month Max any 3 legs weekly: S$18,000 per month Max any 4 legs weekly: S$29,000 per month 3… 5… 10 Years… Is it WORTH IT? So,
So, if you come across… Thank You But… “I Trust USANA.” Blah… Blah… Blah…Bla Blah… Blah… Blah…Bla Blah… Blah… Blah…Bla Thank You But… “I Trust USANA.”
The USANA Binary Plan FAIRNESS STABILITY REAL LEVERAGED INCOME