3 Key Things To Look At A Compensation Plan

It’s not easy to understand how the compensation plan works especially if you are new to this industry. Trying to understand all the details of each company’s comp plan will overwhelm you.

You will only understand how the compensation plan works once you start earning. So instead of trying to figure out the details of the compensation plan, focus only on these few things below.

3 Key Things To Look At A Compensation Plan

#1: Monthly autoship

When you are involved in a legitimate company, the income usually comes from selling the products or services. 

In order to do well, you should be using the products or services of your company too. That’s how you are experiencing the benefits of the products or services, which will help you promote the products or services with confidence and congruence. 

Your monthly consumption of the products or services is called “monthly autoship”. Some companies are using different terms but it refers to the same thing.

Your customers and members in your team will do the same too – consuming the products or services on a monthly basis. This monthly autoship from your customers and members is also the main source of your monthly passive and residual income. 

This is why you should choose a company with great quality and monthly consumable products or monthly subscription-based services if your goal is to build a residual and passive income.

Almost all companies require monthly autoship from their distributors. That’s how the company can survive and pay you well. A company without good products sales will be running out of business. This is why monthly autoship is important if you want the company to continue paying you well with your effort in the business.

Here are a few things you should find out about your company autoship:

• How much is the investment of your monthly autoship?
• The quantity of your autoship product – does it require you to invest in the big quantity more than you need on a monthly basis, that will end up having you stock up all the extra products that can’t be finished?
• When you are ordering more products in a certain month, does the extra products that you order count towards your next following months’ autoship – that means you don’t have to order products anymore for the next following months?
• As you scale up the rank, will your monthly autoship amount remain the same or increase?

I love my company as I only need to consume one box of supplements for my autoship, which will finish within a month. Sometimes, when my company is having a great promotion, I will order a few months worth of products for a better discount, and I do not need to order products anymore for the next few months. As I scale up the rank, my monthly autoship amount still remains the same.

#2: How to prevent your point from being flush?

Each distributor will be given the points from their team sales volume. These points are your income as your company will pay you based on the points you are having.

You need to find out how to prevent your points from being flush. Some companies are based on your monthly sales volume performance to keep your points. Some companies don’t have the stress of meeting the monthly sales target, but it only requires you to use the products on a monthly basis – the autoship, to keep your points.

Personally, I prefer the company that only requires me to use one box of supplements on a monthly basis to keep my points, without the stress of hitting the monthly sales volume. This is especially important for busy moms that are dealing with many other responsibilities.

#3: Are you being paid 100%?

Some companies will cut out a certain percentage of your commission to pay to your upline leaders. If this is the case, you are not paid 100%. With this kind of unfair compensation plan, you will never earn more than your upline leaders. 

So, choose a company that pays you 100% instead. With this kind of fair compensation plan, you will earn more than your upline leaders if you are more skillful and more hardworking than them. 

Next week, I will talk about how to choose the right company to kick start your work-from-home business. Stay tuned!