The direct sales industry has got to be one of the leading industries that most entrepreneurs are choosing to get involved with for the following reasons:
1. Lower Start Up
2. Independent Hours
3. Boss Free
4. High Commissions
5. Passive Income
6. Time Freedom
Lower Start Up:
Most direct sales businesses are much cheaper to start compared to franchise models that require $250,000 plus capital. However some direct selling compensation models have the potential to make up to 10 times the profit than most franchises.
Independent Hours:
Independent direct selling distributors work independent from the company & are in position to set their own hours.
Boss Free:
People who have a hard time working for other people tend to do very well in this industry. They do however have to be able to function well without constant supervision & this takes a lot of self discipline to accomplish this.
High Commissions:
This is one of the main reasons why most entrepreneurs are choosing to get involved with the direct sales model. The direct selling companies save a lot of money by eliminating the retailers so they can afford to inflate the compensation plan highly in favour of the distributors who after all are doing most of the work. In this industry you are paid for your efforts instead of your time. The more you put into your business the more you will be rewarded.
Passive Income:
Most direct selling companies will reward distributors who are good team players or leaders with an infinity bonus. This is basically an extra income stream that you are able to receive each month without your constant extra effort. Passive income is what most wealthy people have used as leverage that made them wealthy.
Time Freedom:
In direct selling you can use the power of leverage (team efforts) to leverage your time. The result is more income in less time. When someone gets paid by the hour there is a cap on how much money that they can make. When you are paid for your efforts you have the potential to make a lot more.
It’s so awesome in so many ways and it has paved the ways for me to just live an awesome lifestyle.
but…..
Jumping into a home business and NOT knowing about the REAL Compensation Strategy will make it seem like your bank has a black hole just sucking down your hard earned commissions… ARRRR
Following is some video’s put together by my friend and teammate Lawrence Tam.
Compensation Strategy Video #1 – 1/2 Tier “Your The Team Effort”
1 Tier Compensation Example
This is where I stared and made a LOT of money… but it’s not all happy and great
Why?
You better be He-Man as your not going to get much love. All traffic needs to be self generated and 2nd tier does help but mostly won’t do much until you hit some crazy numbers well over 500 before you really know if you can duplicate… the mistake I made…
This is a great starting point but the traffic is never going to go viral. Your going to have to do all the heavy lifting and it’s going to be costly if you don’t get your traffic to income down.
Compensation Strategy Video #2 – Binary “Lost Inside”
Binary Compensation Plan
Ah yes…. the Binary System so many companies have jumped on to.. It has made me money. It has made a lot of people okay money…
But take a look to how many are making money worth staying?
This was one of the hardest things to do… The company didn’t close but the writing was on the wall
If you sponsor your close friend on a “power leg” then you basically make $0 on their monthly autoship and volume productions. If you put them in your paid leg then your going to have shafted them by not giving them the bigger leg. Plus THEY get no real love now because they too have to build their “inner” leg and if your PERSONAL volume doesn’t flow well you just made your friend have to build 2 legs… shaking head
What kind of compensation is there really? Most of the binaries I’ve seen and the 2 I’ve been in do NOT have a car bonus or huge cash bonus until your on top of the comp plan with a huge downline….I’ve hit a lot of higher levels and let’s just say putting in 50+ people personally in a short period of time and I got a piece of paper that said… “thanks”
Look at the corporate emails to see how many people are actually “RANK Advancing”. It’s easy to see. If you have a company that is NOT growing how do you expect to change that trend? Sure early to market is one thing but you better have a better strategy than to rely solely on the compensation strategy to make you win some nice cash kick backs. One of the companies I was in out of the ENTIRE company there were like 25 people in TOTAL that were rank advancing…. Shaking head…
Compensation Strategy Video #3 – Unilevel “Go Wide”
Unilevel Compensation Plan
This is where I started and made a lot of offline money here.
I love this compensation plan except the fact people who sponsor more than #3 people will just go WIDE… yeah.. basically shafting everyone they brought in… Overflow is a very rare occurrence and even more more so once they rank advance.
If it wasn’t for going wide and that you can’t really help people because your trying to go wide to make sure to not “leave people” attached to duds who do nothing… it’s critical you do NOT pair up players to scrubs. It will kill your team atmosphere.
I mean… if this compensation plan could only have a way to put people on a waiting list so you can then pair up people AND have spillover….
Compensation Strategy Video #4 – Unilevel + Matrix + 60 Day Waiting Period “Spill Over Madness”
3 x 3 max. Rest Overflow
The image above is a visual way to see it. See. If you have real over flow in a 3×3 then it’s not longer a real unilevel. The way it’s changed up to allow people at top to send OverFlow volume down in a 60 day window is just magical.
The person at bottom is no longer the short man with the stick. It’s all about performance and if you do your work there will be volume from above waiting to help you get to the “NEXT” level.
See, this compensation strategy is one that lends itself to leveraging people at top to WANT to give you volume as long as you perform and hence the birth of “contesting” for spots and volume.
The psychology behind this is awesome. People want to “win” and what you did is build a winning organization vs one that complains about everything in the worlds.
Go get it done and this compensation strategy will come in to help you.
3×3 but with 60 days to PLACE people
This is just a full blown matrix of 3×3 but i want to just show that people MUST go down and people above are pushing down even though unilevel doesn’t have that… this is why I say it’s a unilevel + matrix
If you noticed… in Video #4 it is Business time…. I took my glasses off. ahhah
To come in and leverage my team, my overflow, my internet marketing groups, my offline training groups, and just to hang out with a cool bunch of people moving to make some “serious” money for the masses… putting $500/month + and a BMW in their drive way…. that my friends is how we are going to help out the middle class.
So what leverage?
I’m the #1 money earner in Empower Network (over $90k in 9 weeks)
#2 all time in leads generated in MLSP
Magnetic Sponsoring Super Affiliate
Have had plenty of $1,000 days while riding a rollercoaster and $10,000 days when on vacation
My sponsor joined Visalus at the same time (Toby and Layla Black) and using traditional offline skills and online marketing principles brought in over 50+ people into our team in 24 hours.
Where do you think people have to go in 60 days? …. Yep… under those who work and move. There is love for all that work… no love for squatters and position hoggers… Just real love for those wanting to change their lives.
See you on the other side and leverage a real compensation strategy that works for you vs against you
When comparing marketing with sales and considering how they relate to one another I always think of the medium sized business where I had my first job. The marketing department people were serious and analytical, always busy with statistics and campaigns and meetings. The sales people were breathless, always on the go, always on the phone or going to meet customers, always on the cusp of some enormous deal, some magic sale that would catapult the company’s turnover way over the annual target. As a junior it seemed to me that the marketing people and the sales people were from two different planets. I now know that they were simply two parts of the same continuum.
Marketing can be described as the set of activities that are undertaken in order to generate leads, while selling is the act of turning a prospect a hot lead into a buyer and later a repeat customer. The marketing and sales functions of any organization are glued together by leads. If there are no leads, the two will fall foul of one another. I saw this in that business I was describing earlier. But leads work both ways. The marketing department has to deliver them and the sales department must act upon them to maximum advantage. But leads must first be generated and that is why marketing tends to overwhelm the sales function when the two are discussed.
The various forms that marketing takes are well known because they are so visible. They range from cold canvassing to brand or corporate advertising, through to the more targeted types of marketing such as direct response advertising and referrals, where the particular benefits of the product is explained to the customer. If this is done properly, then qualified prospects will actually approach the sales people for assistance. Sales people love those leads. It is in fact when the sales people take over the communication function that the lead ceases to be a lead and becomes a prospective customer, then a customer and finally a repeat customer.
Actually I have painted a somewhat idealistic picture of the lead relationship between the marketing function and the sales function. It is just not that simple because not all leads are equal. An extremely tiny percentage leads are customers who are ready to buy. Most of them are merely interested in possibly buying at a future date and some are just mildly interested, just browsing. That’s why it is important to have some sort of lead management system so that potential customers can be turned into buyers and buyers can become repeat customers.
All follow up communication should be friendly and informative, definitely not hard sell. The company representative should be regarded as a helpful expert rather than a rabid sales person. Fortunately many of the follow up functions can be automated to take the form of email, direct mail, voice broadcast and fax broadcast. Obviously the lead would be encouraged each time to call directly if they have questions or a ready to buy. The follow up effort is usually a function of the marketing and sales departments combined.
