There are a number of items that are not revealed at the the company overview presentations. Let's face it, the business presentation takes at least 30 minutes as it is, so to reveal all the details behind the company and how you make it work would take another two hours (we know, we have given that presentation many times). Some of these items are actually positive factors for your business, while others are things that simply need more clarification. The business model stands solidly once you completely understand everything, but unfortunately the elimination of some facts can leave folks distrustful. Our team understands all these items and can successfully guide you through avoiding pitfalls and maximizing your income in the most efficient manner. Some examples:
Good Things They Forget to Mention - Total Manager Compensation:
In the company overview presentation video, it is emphasized that the "real" money begins at the Regional level, where bonuses are at least $100 for everyone who joins your organization through infinite levels. This is fairly obvious to anyone how powerful this becomes, but it is implied that your Manager organization (which is your starting point in the company) is not really a potential significant income generator. In fact, they really downplay the income potential of the Manager organization, and while certainly short-term there is little noticeable income generated, it is completely ignored just how lucrative staying in the Manager organization can be.
The company overview mentions that you will get paid from your first eight levels only in your Manager organization. This is most definitely true, but it is also implied that your maximum number of representatives that you can have in your Manager organization (assuming you follow the 3x3 method... 3 people in your front line, 3 in each of theirs, etc.) is 9,840. For you math geeks, I arrived at this number by summing up all the folks shown in the "Managers" column in graphic shown to the right.
Now, I think we all know that in practicality, you will not have a perfect 3x3 formation and end up with 9,840 managers in your Manager organization (if you did you would be VERY well compensated). So let's take a more conservative approach.
Just for argument's sake, let's assume you have added some people to your organization, but only had one or two folks on your first level (therefore never being promoted to Regional because of the missing 3rd person in your 1st level). Someone in your organization is successful at reaches their Regional promotion. A common misconception is that once they become Regional, any future work they breed in their Regional organization provides $0 in additional income to you. In fact, this is completely untrue. Here's an example to demonstrate....
Suppose your close friend Judy joined your Manager organization as a new manager, and fell into your 3rd level. The first three people she brings in would be on your 4th level of your Manager organization and would be on her 1st level of her Manager organization. So far so good, right?
Now, let's say they she goes on to have her 12 people in the proper places (and with the proper points earned) and receives a promotion to Regional. You, however, are still in your Manager organization. And then Judy goes on to place 12 more people (3 in her level 1, and each with the proper 5 points) in her Regional organization within a calendar month. How much does Judy and you each make (we are only considering bonuses, not residual commissions, which also would apply)?
The traditional thinking would break down like this:
- You (from Judy's Manager organization): $265 total... $100 for Judy joining your level 1, $165 for the remaining 12 individuals ($15 each times 11 people).
- Judy (from her Manager organization): $435 total... $300 for the first three people in Judy's level 1, $135 for the remaining 9 individuals ($15 each times 9 people).
- You (from Judy's Regional organization): $0, because she left your group to move on to her Regional organization
- Judy (from her Regional organization): $2100... $600 for the first three people in her level 1, $900 for the remaining in her remaining levels, plus an additional $600 for putting at least six people into her Regional organization in one calendar month.
This is not correct... you actually earn more than this! So... what's wrong in this equation?
There is no such thing as a breakaway from your Manager organization. So, when any member gets promoted, anyone they add into their Regional organization still gets added into your downline in the same level they would have been added had the promoted person still remained. Confused?
Using the example above, you would actually have earned another $180 ($15 times 12) from the 12 people that Judy added into her Regional organization. Why? Because Judy was in your level 3 and anyone she adds goes into your level 4 through 8 Manager as well as Judy's levels 1 through 5 Regional. In this same example, once Judy adds people in her Regional levels 6 and beyond, you earn no more money from those new people because you only get paid through level 8. Therefore, again in this example where Judy was on your level 3, Judy has the potential of bringing you an extra $5,445 in bonuses (3x3 for five levels, a total of 363 representatives) that you had not expected. And this does not count the residuals which are added in as well (including the 5% residuals for everyone in your level 8, which includes everyone she brings into her level 5 Regional).
That's a pleasant surprise, is it not! But it gets even better...
Let's assume Judy continues on to receive an Executive promotion. Guess what? She is STILL on level 3 of your Manager organization, and -- just as before -- the first three folks she brings into her Executive organization (her level 1) are on your 4th level of your Manager organization... yet another $45 for you, and another potential $5,445 in bonuses, plus the commissions including the 5% commission for level 8.
One more point I did not consider in this example: For the purposes of not confusing you even further, I ignored the extra $5 bonus added onto everyone who joins your level 8 organization. This bonus does apply to Judy's Regional, Executive, and even National codes at her level 5 (because this would be your level 8) as well. For you math geeks who like to keep up (like me), this would equate to an additional $1,215 from Judy's Regional organization and the same amount from her Executive, assuming a perfect 3x3 execution (243 representives times $5).
Sounding good now? But there is EVEN MORE....
We only assumed one person in your entire Manager organization was promoted. The same would apply for anyone in your organization up through your first seven levels. But that's not the additional part I wanted to mention.
Continuing with the example of Judy, ANYONE who is promoted in any of Judy's organizations (within her first 4 levels, in this case) would also continue to add people into your Manager's organization with the same bonuses. So, if Judy added Tim into her Executive organization at her level 2 (which would be level 5 in your Manager organization), the first three people Tim brings into his Manager organization (his level 1) would be in your level 6 and therefore would earn you an additional $45 (points assumed).
Can you see how this can easily get mind-blowing? Especially when you factor in the 5% commissions on level 8 (which, if you follow the chart above, would add up to 7,074 representatives in your level 8, and 10,605 representatives in your Manager group total). This is why, even if you do manage a perfect 3x3 hierarchy in your Manager organization, you can have MANY more than 6,561 representatives in your level 8, each of which earned you bonuses and commissions.
And remember, even if you do promote to Regional or beyond, your Manager organization never goes away, hopefully continuing to grow in the process.
Things They Really Should Clarify a Bit More - Residual Income:
The company overview presentation video shows slides indicating that you will earn 1/4% percent commission (known as CGU, or Customer Generated Usage) on all services purchased by your customers and any customers in your levels 2 - 7, plus 5% on all services purchased by any customers in your level 8. To clarify, the CGU can actually vary, and in some cases there are no "commissions" on the actual service but rather flat fees paid out to representatives as commissions. Bear in mind, nobody claims that you will get wealthy on the commissions in the short term, but when your customer and representative downlines grow noticeably the commissions can have a great impact on your pocketbook, especially on your level 8 where are the commissions are maximized.
For example, the commissions paid for any cell phone contract -- regardless of the amount of the contract or the provider -- ranges from $0.05 to $1.00. For Dish network, the commissions paid are flat fees ranging from $0.08 to $1.59. GE Home Security pays a flat-fee commission ranging from $0.03 to $0.90, and finally all Internet access services pay between $0.05 and $0.50 in flat-fee commissions.
Conversely, and more positively, the commissions on actual services paid for a number of items may be better than 1/4% (although most fall into the 1/4% range). Magazines.com orders are typically 1/2% for your levels 1 - 7, but jump up to 10% on your level 8. Similarly, the $1.59 commission for Dish Network on your level 8 will add up in a hurry just by itself.
This is in no way to imply that the money paid is insufficient or inadequate. In fact, the residual earnings are still quite good on your level 8 throughout the entire organization, and may average out to be more or less than 5% of each and every bill paid, contingent on which services are purchased. But it is important to understand the commission structures. Oftentimes, folks switching their $100 per month cell phones are expecting a $0.25 commission when in fact they will receive a $1.00 commission on their own phone, but only $0.05 commission on the same plans signed up as customers for anyone in their downline through level 7.
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