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The compensation plan comparison document can be found here.
TLC has 5 main income streams and we will go through each one, one at a time.
1) Retail Sales.
TLC has profit margins of up to 50% which is similar to that of GWT. However, one should look at which product is more likely to retail. Would a $40 pack of TEA sell more, or would a $40 natural gemstone POSH piece sell easier?
The second thing to consider is how fast can it sell. To sell a $40 pack of tea requires quite a lot of explanation and justification because it’s tea, where as a $40 jewelry piece doesn’t need any justification.
For example, TLC has a IASO 150 PACK which is $1679.95 and gives you 150 Packs of tea?!?!?! Personally, I would rather get some amazing fashion products and a whole BUNCH of them rather then 150 Packs of tea. But that’s just my personal decision, what do you think your people would choose?
2) Fast-Start Bonus
TLC has a fast start bonus where based on the people you personally introduce, you can earn a 50% commission on the orders that your people place. This may sound great, but when it comes to building a business let’s take a look at the numbers and also look at the reality of it.
At GWT, we have different packages which have products with them. Silver $560 gives $585 of products up to Diamond which is $3500 and gives $6000 of products. Any package which someone you introduce will earn you a $50 bonus.
At TLC, for you to earn a $50 bonus, your client would have had to spend $100 on a product. Might sound great but the real question is how many people actually pay the $100 on products, or would just stick to the 40PV requirement to be active which then pays you $20?
One of the big Compensation Plan Pitfalls GAME-OVER clauses talks about a company paying MORE in BONUSES or do they focus MORE in RESIDUALS. With TLC, they focus more on bonuses but unfortunately, bonuses can come and go. Where as RESIDUAL income is for LIFE.
Let’s say that in GWT, you enrolled someone as a Diamond with 1800 volume. Most people have a bigger leg and if that Diamond came in on their smaller leg, it would pay them $500 right away.
At TLC, what’s the likelihood that someone becomes a customer and purchases $1000 of products? One aspect that I have seen when it comes to Nutritional MLM products is that a lot of people end up having to sell a lot of the same stuff… meaning it’s unlikely in most countries for people to justify spending more then they need. They’ll just buy exactly what they need and won’t buy three bottles of the same thing to generate that $1000 of products. However, at GWT, the Diamond package of $3500 gives you $6000 of products and with over 1600 different products to choose from at GWT, that $6000 is easily justifiable!
But again, this is just a bonus and we need to focus on the RESIDUAL income if you want to be able to retire in the future. That’s next.
3) Binary Commissions
This is the bread and butter and the main component one should be focusing on if they would like to earn lifelong residual income.
In TLC, they pay you from 10% on the weaker leg, up to 25% on the weaker leg based on your rank and they have over 9 ranks to qualify for to DICTATE your income. This is an INSTANT GAME-OVER CLAUSE! If you have to go up in ranks, and develop ranked people underneath you, in order to maximize your commissions, it’s GAME OVER. At GWT, simply just by launching as a Diamond maximizes your income. Let’s take a deeper look though.
AT TLC, if you had left leg of 10,000 GV, and right side of 25,000 GV, they would then pay you 10% of 10,000 GV which is $1000. If you’re thinking what if you were a higher rank, don’t forget that most people in any MLM company don’t have those higher ranks. And it gets harder and harder to achieve those higher ranks. Why would you want to be in a company that you have to go through different ranks when you could start with GWT which has no ranks to go through to maximize your commissions.
At GWT, the same example of 10,000 GV on your left, and 20,000 GV on your right, we would add them together which is 30,000 GV and then pay you 10% of 30,000 GV which is $3,000! Would you rather wants $1,000 for the EXACT SAME EFFORT, or would you want $3,000? Even at TLC, if you had the HIGHEST rank which less then 0.001% have that rank, you would only earn 25% which of 10,000 GV which is $2500. GAME-OVER!!!!
At GWT, you have more probability of earning $3,000 right away compared to at TLC you would ONLY earn $2500 EVEN IF YOU HAD THE HIGHEST RANK which is nearly IMPOSSIBLE to reach. To find out, ask the company how many members have joined that company and how many of those people have that Executive Ambassador Rank? Do the math and that’s your probability of attaining that rank. But even if you did manage to get that rank, why would you settle for $2500 rather then $3000.
In MLM, we need to focus on the every day people and what’s more likely for them to be able to earn income, and be able to make this their full time job hopefully. If your binary commissions which is the bread and better is so hard to attain, and for the average person to earn $1,000 rather then $3,000… it’s just HARD. TLC you would earn $100 instead of $300. That’s 200% MORE income at GWT.
TLC tries to to pay more in bonuses but ask yourself this question. Are you here to build this company and earn for a few years, or are you here to build a company and earn lifelong residual income. And if you want lifelong residual income, do you want to earn $100 or $300? $1000 or $3000? $10,000 or $30,000? $100,000 or $300,000? INSTANT GAME-OVER. TLC simply can not pay more especially in the area that is the most important.
4) Matching Bonus
Again, this is just another bonus and is never guaranteed because it depends on whether or not your team earn binary commissions. Again, always focus on the residual income because that’s the biggest component as you go longer and longer into the business. But at TLC, they pay you 50% on your 1st Gen, and 10% on your 2nd Gen. It might look good on paper but let’s actually do the math here.
Based on the above example, if you had someone who had 10,000 left volume and 20,000 right volume, that person would earn $100. Then, you would earn 50% of $100 which is $50. And to show you the bigger picture, if you had 10,000 left volume, and more on the bigger leg, you would also earn $100. So you earned a total of $150.
At GWT, the same example, if you had someone who had 10,000 left volume and 20,000 right volume, that person would earn $300. Then you would earn 10% of the $300 which is $30. And same as above, if you had 10,000 left volume, and more on the bigger leg, you would earn $300. So a total of $330.
Do you want $150 or $330?
The example I’m trying to show you here is that usually when your 1st gen and 2nd gen are making matching bonuses, then you’re also usually making team commission because of the volume that’s coming up. So in paper, it might look better in TLC but what you don’t realize is that you’re losing more in Binary Commissions then what you’re gaining in matching bonuses. In reality, you want to gain MORE in binary commission because you’ll ALWAYS GET IT. You don’t always get a matching bonuses because it depends if your TEAM made a binary cycle.
Another way to look at this is that you can never predict when someone in your team will make a binary cycle commission for you to earn a matching bonus. So then you’re heavily relying on binary commission for yourself as an income stream but you’re getting paid 200% less then at GWT.
At GWT, regardless of whether or not your team is making binary cycles, you’re always earning binary cycle commission which is 200% MORE. GAME-OVER!
4) Lifestyle Bonus
At TLC, you can basically somehow earn up to $1500 and you can use it towards travel or office expenses.
This comes no where close to the Ambassador Cruise, Luxury Vacations, Luxury Cars, and Exotic Cars from GWT. The Luxury Car alone allowances you $1000 per month. The Exotic Car allowances you $3000 per month.
And we haven’t even mentioned GWT’s 2% Global Revenue Share that completely dominates any form of Lifestyle Bonus.
I recently saw someone from TLC try to do some kind of breakdown and they really missed the key points that I discussed here. Secondly, I could tell they were really avoiding the Binary Commissions between GWT versus TLC but I’ll use their numbers to prove it again.
In their example, they said if you had 25% reached with 250,000 group volume. So, I’ll give the benefit of the doubt and assume you have a perfect split of 1/3 of the 250,000 which is 83334 one side, and 166,666 on the other side. At this point, you would earn 25% on the 83334 which is $20833.50.
At GWT with the EXACT same numbers, you would earn 10% of 250,000 which is $25000.00. And don’t forget, at TLC, less then 0.1% of the people actually earn the 25% binary commission, it’s usually 10-15% which is $8334 to $12500.10.
This other person who tried to state that in TLC you max out at $20,000 per week and at GWT you max out at $10,000 per week. They forgot to mention that at GWT you have 3 business centers to earn $30,000 per week which is more then $20,000 per week. But in reality, why even look at these big numbers when the average person in MLM struggles to earn $1000 per week?
In MLM, you want your people to be able to earn more in residual lifelong income with a fewer number of people, then require almost 3 times MORE people to earn the same income. In summary, don’t forget that when you take more in bonuses (which you don’t ALWAYS get), you forfeit the binary commissions which you should ALWAYS get. At GWT, the bonuses are great but the focus is on the binary commissions which pays you 200% MORE, that’s 3 times MORE then TLC. No comparison. The longer you’re in business in MLM, the more you want in Binary Commissions and not in bonuses that are maybe’s.
And lastly, here are some other key pointers I’ve realized now in the MLM industry after 12 years.
WANT versus NEED
It’s easier to sell a want then a need. Want is more powerful then need. For example, people don’t need to smoke, but they want to. People don’t need to drink, but they want to. People don’t need to buy designer labels, but they want to. In nutrition, selling a need was good many many years ago. When there was only a few nutritional companies or telecom companies or utility companies. Nowadays, there are too many choices amongst MLM and even the local grocery and pharmacies to buy nutritional items. In GWT, people are happily saving money into their IA to one day buy the item they’ve always wanted and have been saving up for.
Education in products
In most health companies, you have to become half a doctor to be able to effectively sell their products. In GWT, everyone knows what a watch is, jewelry, etc… so it’s SUPER simple. In nutrition, you have to not only become half a doctor, but also you need to train your team on how to become half a doctor. Duplication is key and the longer it takes for someone to learn about their products, the longer the duplication process. And the more learning there is in a system, the more complicated it can become, and you can potentially lose a lot of your team due to this.
According to the DSA, there are now 30 million people in North American who are in the health and wellness industry. As great as companies can be, if there are too many people competing against you, it’s almost impossible to make those huge incomes as you always wanted. If you had joined these huge companies when they first got started 20 years ago, you’d be in a good situation because there wasn’t that many companies back then in health and wellness. Today, every month or even every week there is the newest latest and greatest health and wellness company. And I’m constantly being approached by these company’s to join them, bring a team over, and they’ll give me some type of joining incentive (cash, inherit a downline, etc..). In summary, if you’re today in a health and wellness company, it’s almost pointless. Even if you establish a huge team, after a few months, when the latest and greatest company comes out, most of your team leaves you and now you’re back to trying to building a brand new team. The industry retention ratio is roughly 10-18% so that means after one year with 100 people, only 10-18 of them are left. It’s exhausting and if that’s the deal in health and wellness companies, then no thank you!