DISCLAIMER: The below compensation plan comparisons and breakdowns are based upon the opinions of people. Compensation Plans from companies to companies do change overtime and so these below comparison documents may be outdated. We highly suggest that you do your own homework, your own due diligence and contact whomever you feel is most professionally inline and has knowledge regarding your company or a company that you are looking into. We do not and can not guarantee that our opinions are 100% accurate but are simply our own personal opinions of the compensation plans after we have looked at them.
The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of Business For Home. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them. Every effort is made to keep the website up and running smoothly. However, Business For Home takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
They are a classic Stairstep Breakaway plan. You build up a certain amount of volume in the people you personally recruit and each leg starts accumulating volume – which determines your increasing commission levels. If they get to a certain level, they break away and you get an override (smaller) on everything in their group… but it might cause you to drop down in terms of your rank. Its messy to explain, and even messier to maximize because its competitive early – you’d rather sponsor people yourself – and then with the breakaway there becomes a point you don’t want to help people anymore. And people build very wide, because the legs will ultimately break away if you’re having success.
Here’s some basics (from http://www.amquix.info/amway_basics.html)
The number of PV points one has, determines the bonus percentage to be paid. This percentage can be anywhere from 3% to 25% of the BV (Business Volume) points. (This is based on the PV of YOU and anyone you personally sponsor, and they sponsor… etc)
The number of BV points determines how much commission is paid for a certain bonus level.
Commission paid = (PV percentage) x (number of BV points) – (Downline commissions)
(Downline commissions) = (PV percentage downline) x (number of BV pointsdownline)
Typically, Amway core product have more favorable BVand PV per sales dollar since the Amway products do not carry the sales and marketing costs of nationally advertised brand name articles. Brand name articles generally carry less favorable BV/PV/$ ratios. Since Quixtar can not obtain the brand name articles cheaper than the Wal-Marts and Costcos, they must offer lower total pay outs on these products to have any hope of selling them at a competitive price.
The ranks kick in around 7500 PV:
As one expands up to 7500 points and is able to maintain this level for at least 6 months in a year they become a “direct distributor” or otherwise known as a platinum distributor and qualify for the largest bonus percentage of 25%. If one maintains 7500 PV for 12 months in a row then they become a Q12 Platinum direct distributor and earn a bonus of $10,000 for each year they qualify.
A 7,500 PV distributor with 74 personally sponsored 100PV distributors would have gross bonuses of $3,750. His downline is entitled to 74 x $6 = $444 in bonuses, so his net bonus is $3,306.
A 7,600PV distributor with just one personally sponsored leg of 75 distributors doing 7500 PV would net just $50 in bonuses since he has no other width, with which to leverage his 25% bonus percentage.
Once you help others to be come direct distributors then their volume splits off from yours and you will be entitled to a 4% residual from their business, provided they qualify for direct and you have at least 7500PV of volume in other legs in your own business, or you have two or more qualifying legs.
The ranks get pretty crazy:
And here’s a discussion of the typical Team Strategy:
Here is a simple diagram