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So PTN is a compensation plan that brings back lots of memories for me because I was actually in PTN before I joined GWT. I reached the rank of Training Director (TD), made some money, but most of my people didn’t and the residual income was something that leaders often didn’t want to share. But all of that is simply because I didn’t know better until I met Ramin Mesgarlou and learned about Compensation Plan Pitfalls.
So here is the breakdown of PTN.
I’m basing this breakdown upon the above link which when looking back, hasn’t changed much.
PTN is a 2×10 Matrix. What that means is that everyone can have 2 legs, but you only get paid down to 10 levels deep UNTIL you reach a certain rank. “GAME-OVER”. As per the Compensation Plan Pitfalls, anything that has rank is unfair to the distributor and it’s GAME-OVER.
In PTN, you earn essentially earn $30 for every ITAP sale which is basically someone joining you. In GWT, you earn $50 wholesale profit for each person who joins whether it’s Silver, Plangsten, Gold or Diamond. Let’s not forget to mention when someone joins even the Silver package at $399, they instantly receive $1000 worth of FERI Silver! GWT is the clear winner here.
In PTN, you can also earn these indirect commissions for people who join based upon your rank. This may sound great at first but once you have too many similar ranked people between you and that new member, you start to lose these bonuses. So the fact that you have to qualify to reach this bonus, and you may even lose the bonus is a simply “GAME-OVER”. In GWT, you earn all the bonuses from Day 1 with the Diamond Package. No need to work for anything, just join Diamond! In GWT, whenever someone joins your team you instantly get that volume which pays out at 10% which PTN doesn’t even do. In their system, the residuals are TINY and the bonuses are more. As taught in making a successful home based business you want to focus on a compensation plan that pays more in residuals and still has bonuses like GWT. The PTN game is really a sign-up game because you make the most money from new people joining and not from their monthly contributions.
In PTN, it’s interesting that they have these Infinity Bonuses but in reality, it doesn’t really pay to infinite because like above, if more then 1 or 2 people have the same rank as you do between the new member and you, you won’t get these bonuses. It’s honestly very stressful trying to get these bonuses because you never know when you won’t get it. It’s like trying to play a game that gets really tiring.
I have to mention that there are some fine prints in PTN that you HAVE to be aware about. For example, they have what’s called “REMAIN ACTIVE”. In other words, you have to personally keep on bringing in people every once 90 days in order to keep active. This is honestly the most annoying part of their program when I was in it. At GWT, there is NOTHING you have to do to remain active, to keep getting commissions, aside from paying your own monthly IA contribution. “GAME-OVER” with all these remaining active rules and not so infinity infinity bonuses.
Ah, now we get into the residual income part of the business and what we all strive to achieve. PTN uses a 2×10 matrix which means it’s binary, but it only goes down to 10 levels and that’s where you get paid down to. Again, “GAME-OVER” when you only get paid down to certain levels and have to work to achieve the later ones. Now to calculate what’s really your payout in the Matrix, you must look at the cost of joining and your monthly fees. The ITAP program is $500 which includes your first month payment of $50 monthly renewal fee. By the way, I’ll mention interesting things about this monthly renewal fee later on, as in, what do you really get for this?
So the way the Matrix works is that for every person who is paying their ‘monthly fees’ you start to make some income on this. So, as people pay their monthly $50 fees, then you will make a portion of that in the matrix. The Matrix is designed to pay you the most on your first two generations to try to help you cover your monthly fees but then it drops DRASTICALLY to a very low payout afterwards. You can see the chart below.
|BASIC MATRIX PAYOUT|
|Level||# Reps||Amount||Total||# Reps||Amount|
Interestingly enough, the maximum you can earn in residuals at PTN is $4400 even according to their compensation plan pdf. From my chart above, if it were really 10 levels it could have been $12,954. So they treat you as level 1 basically. Personally, if I knew that the most I could make in a compensation plan was $4400, I would not even have bothered joining because I now know of many other better paying compensation plans. For instance, at GWT, your weekly commissions can be $10,000/week!!! With Diamond package, it’s 3 times so $30,000/week!!! I’m already making more in residual incomes than $4400 so can you imagine if I was in PTN I would be stuck with $4400. Again, residual income is what we all want!
But there’s more. If you really understand the way the Matrix works, PTN has no compression horizontally or vertically. Which means that if your first level has one person missing of the 3, then from that one person missing all the way down you’ll be missing all those people. In other words, it’s IMPOSSIBLE to have your matrix perfectly filled out row by row. It’s impossible to have 2, then 4, then 8, then 16, 32, 64… if one person is missing the whole way down is gone. So it’s impossible to have 1024 or 512 people filled out.
But let’s look at the payout as well on each level. If someone’s monthly payment is $50. Then making $20 out of the $50 for the first two people is 40%. Then the next level is $0.50 cents, a payout of 1%. Third level is $1 out of the $50 so a payout of 2%. Notice how the lower you get, the slightly more they pay you because they know it’s impossible to have a perfectly filled out matrix. So you never get a lot of the people at the $2, $3, $6 or $8. WAY TOO MANY “GAME-OVER” clauses! GWT’s payout is 10% from the first level down to INFINITE!!! Not so called 10 levels.
I remember I used to be wow’d by this but they have matching bonuses. You don’t know what’s good till you see better right? Anyhow, they pay you a matching bonus of 50%, then 75% then 100% based on your rank. So firstly, most people never get the 100% or 75%, maybe just 50%. But the key here is that 50% of a small number is still a small number. At GWT, just joining Diamond allows you to make 10% matching bonuses on everyone. 10% of a big number is a big number. For example in GWT, someone in your team cycles with $500 you just made $50! In PTN, if someone makes $40 from their first two people, you make $20. Would you want $20 or $50?
They have a vacation reward and one other bonus but those bonuses only apply to the top people which is usually 1%. At GWT, we have Wholesale Profits, Matching bonuses, IA Matching bonuses, car program, vacation program, plus a HIGH RESIDUAL income plan.
Personally, I remember I had a $2000 cheque coming to me at PTN but then because someone in my team lost a rank, I lost a rank too. But I had lost the rank AFTER the end of the month at the beginning of the next month so I still should have received my $2000. But when I called the company, they said because the processing payout was a few days after, I ended up losing my bonuses. After that, I almost wanted to quit.
Anyhow, PTN isn’t really around anymore in my opinion but I wanted people to see this who used to be in PTN.