Is My Compensation Plan Really Superior to Other Companies?

The Reason Most People Don't Make Money in a MLM Business has Nothing To Do with the Compensation Plan.


You need a compensation plan that can last in the long-term, because when you build a solid organization, you don't want see it disappear because a company isn't managing it properly. This advice may not be sexy, but it's a reality. Don't get caught up on the latest and greatest, or a certain style. You work none, you get paid none. You work a little, you get paid a little. You work a lot, you get paid a lot.



If you want general advice, then we would say this: if a compensation plan has a lot of seven-figure income earners as opposed to five and six figure income earners, then it's a plan that isn't "middle class" focused. We personally don't recommend plans like that, because as with any economy, the middle class is what brings stability to a group. Another important bit of advice (and this isn't talked about much) is how you are compensated for customers. If you are only paid well for recruiting and not paid very well for customers, then your company is going to have problems down the road.

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Also, we don't believe in building without a solid customer base. If you aren't paid well for customers, no one is going to get customers.


The FTC (Federal Trade Commission) basically condemns compensation plans that don't pay well for customers and retailing...

This excerpt from a Federal Trade Commission (FTC) statement (http://www.ftc.gov/speeches/other/dvimf16.htm) drives home the point:

"Pyramid schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public. Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure. There are two tell-tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading and a lack of retail sales. Inventory loading occurs when a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices. If this occurs throughout the company's distribution system, the people at the top of the pyramid reap substantial profits, even though little or no product moves to market. The people at the bottom make excessive payments for inventory that simply accumulates in their basements. A lack of retail sales is also a red flag that a pyramid exists. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public."

Before you get upset at the government for "picking on MLM," let's put what they are saying in perspective: "If you sold hamburger franchises and those franchises never sold hamburgers, then how would you feel about it?" It's a ridiculous example, but this example is the same as a network marketing company with a compensation plan structure that doesn't compensate its sales force well for customers.

What's the solution? The solution is to sell a good product or service, teach your downline to get a solid customer base as well as getting leverage by recruiting, and for the company to compensate you well for those activities.


Why Our Compensation is Ideal for a Business Common Sense Approach to Network Marketing...



Common Sense Compensation Plan

Companies should pay out, approximately, 40% to 43% of revenue in compensation to their distributor base. If a company pays out more -- beware! When a company starts paying out more than 45% to 50% or more, it creates two possible situations: 1) The company isn't going to last; or 2) they are the stereotypical overpriced MLM company products.

If a company pays below 40%, than you aren't getting the best bang for you buck. Obviously, we are in MLM and we want to be paid as much as possible, but we as long-term leaders understand the realities of running a company.

There is a "sweet spot" and it typically falls around 40% to 43%. Our company always hovers in that range; it usually hovers on the high side, but it varies depending on the quarter of the year (we are aware of this, because our company is publicly-traded which allows for financial transparency.)

If you are one of those few compensation plan "geeks" (we say that in fun and out of respect), you can read about USANA's compensation plan by clicking here.



No Games Here.

Simply put, our compensation plan pays on sales volume. Period. When product is ordered as a result of new customer, new retail sale, downline consumption of the product, and/or product ordered as a part of a new order from a new team member, we get paid on that volume.

In another words, we get paid the same on a $300 order regardless of who orders it...new or existing customer, downline consumption, new downline member, etc. It's simple. We get paid as much for a customer who orders $300 in product as a new distributor who orders $300 in product. We simply get paid for the sales volume generated.



Strong Middle Class

Having a strong middle class brings a tremendous amount of stability to your organization. Do you think people making 5 or 6 figures are going to leave the company when the next "hot MLM company" launches? No, they are going to stick around and stay loyal to you, the company, and the product.

Before a person becomes a 7 figure or multiple 6 figure earner, they first must be a 4 or 5 or 6 figure income earner. The compensation plan we work with, along with our business common sense building philosophy, has created a very stable business for us... and can for you too.



Walk-Away Residual Income is Possible

Our compensation plan allows you to build a walk-away residual income if you build your organization in the correct way. This is the typical MLM dream that everyone wants, yet very few compensation plans are written in a way that you can legitimately do this. If you build a solid customer base, create long-term leaders who are continuing to grow their organizations, then you can have this.


If you can see through the compensation plan hype out there, then it's time to begin our application process...

Make Sure We Are Everything We Say We Are...Risk-Free for 20 Days*

We want to give you a chance to work with us risk-free.

If after 20 days you feel that you don't feel like our team is the place for you, we'll give you every cent back. It's that simple.

You have absolutely nothing to lose, and everything to gain.

Don't procrastinate, don't hesitate. Just take action. You can build the business you never thought you could have... if you make the choice to begin right now.



*The Risk-Free, 100% Guarantee only applies to people who have submitted applications that have been accepted by us.

These numbers are for examples only. They are not a guarantee of income. Individual results will vary.
Please see USANA's average earnings chart for more details.