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I hope you enjoyed the previous blog and also the Secrets of the Direct Sales Industry download I created. 

Now I want to give you another easy one page document that will help you to see if the company you are in, or even a company you are considering, will be a good fit.  Think of it is a way to check to see if the products are going to sell, how the compensation plan stacks up, and more.

But let’s talk for a minute longer and dive into one of my biggest complaints in the industry, it has to do with the compensation plan.  Now as I said previously, there are some companies out there that are starting to become what I call hybrid companies. They still function as a direct sales or party-plan company, but they start pulling benefits from other areas such as a network marketing company.  These may be a better fit, but most companies are slow to make these changes for the reasons in my previous download, including keeping more money within the company and not distributing it to the workforce.

Compensation plans that only payout a unilevel plan make it difficult to earn a much larger paycheck and most certainly create more of a residual income.  These type of unilevel plans only pay you what your team does in sales, no bonuses are built into the monthly payout.

So let’s do an example, which may be similar to a situation you are in. Let’s say you have a team of about 25 people, each one does on average about $300 in sales in a given month….some more and some less. Your team then does about $7500 in total volume, not too shabby for a smaller team.  Now depending on the compensation plan you are typically only going to earn 2% to maybe 8% back, but it really depends on what level each of your 25 people are on. So let’s just keep it super simple and say you make 5% back, you’ll earn a check of $375. You’ll also earn commission on your sales.

But here’s the kicker you probably haven’t even paid attention to. You will be REQUIRED to sell a certain amount even to earn that $375.  Let’s say you have to sell $500 just to even earn that money. Some consultants won’t even do this, meaning part of the income stays within the company and doesn’t get paid out. I’ve even seen companies where the required amount to sell is even much higher. Now I’m not talking about minimums, that is the amount someone is required to just stay active, but if you want to make that $375 you’ll need to sell $500 each and every month.

Now I know what you are thinking, but Dr. Phil what about making big bucks.  Ok, well let me bring up a larger scenario. Let’s say you recruited well and so did a few people on your team. Let’s say you have a team of 250. Not too shabby huh. Ok, so the same info, each person sells $300 and so the total amount in volume is $75,000, which is certainly much nicer. The payout based on 5% is $3750. Well that seems a little better. But now at this level some added things start being required because you have a larger team, you may have another website to run, incentives to give out, maybe a little travel, and of course don’t forget that you’ll definitely want to start putting some money aside to start paying taxes as you’ll be required to.  That puts you at about $3000 a month, give or take a little. Now this will fluctuate based on what season you are in as the summer months are typically a lot slower. But even on average $3000 a month for 12 months isn’t too bad. It’s certainly not bad, but it also isn’t created overnight.

This was me actually. However, when I really started looking at the numbers I was having more and more expenses just to run a business at a higher level. And just as quickly as I recruited new team members I was losing the same amount, retention is pretty difficult in the Direct Sales industry. Even though I was a workaholic and earned some amazing trips, at the end of the day it felt impossible to take my business to the next level as it was stacked against me. 

That’s why if you look at any company there are actually only a few people at the top making those big bucks. That’s when I knew I had to look for something different.

So now that I have you thinking about what to look for in a company or even to take a look at the company you’re with, I want you to use the easy checksheet I’ve created below and see how your company stands up. I’d love to hear how it compares as I’m constantly watching the industry to see what is happening.

I also want you to be on the lookout for my next blog post as I want to talk about another opportunity that I didn’t even knew existed, but has allowed me to, with the same work ethic I put in the other companies, create a true long term and 6+ figure income, in a fraction of the time.  So check out the checksheet and let me know what stands out the most.  


July 19, 2019

Finding the Right Company