compensation

It’s not uncommon to hear direct sales consultants complain about how irritating it is that they are doing all the work and their upline is just getting a free ride.

Generally this isn’t the case; it only appears so because some downline members don’t see the big picture. That said, there are indeed some instances when an upline should be providing more training to downline members. In most direct selling companies there is a systematic approach to take care of these situations. I’m not talking about that genuine lack of responsibility

I am referring to the self motivated, go-getter type consultant who has the inner drive and objective to build a successful business, yet they chose to sign up with someone who does not share the same level of career aspirations at this time. Below is a perfect example of what I’m talking about. After reading it perhaps you’ll have a different perspective.

Disgruntled Consultant: It’s just frustrating because she does it more for personal use and also has her best friend under her as well.   Heck I even asked her if could join. But now I’m over here working my hiney off and in return she gets a free ride and promotes. Isn’t that nice for her and she has never sent me anything in return.

Upline Response: Well, as far as your sponsor is concerned, a few things to keep in mind, she is certainly welcomed to be a part time seller, casual user. The company doesn’t require her to be a business builder. And it sounds as though she did not actively recruit you, because you stated, “˜you asked to join.’  I sometimes I hear third hand how some are upset because they think they do all the work and I get paid off of it. Actually that is partially true – because that’s how our compensation is set up. It’s just a fact with a two-tiered compensation plan. [Read more…] about Feel Like Your Sponsor is Getting a Free Ride?

Most direct sales companies have a two-tiered compensation plan. It’s a different structure than most compensation plans. Lack of understanding how a two-tiered plan works can lead to frustration and inability to reach full earning potential.

In short, part of the direct sales consultant’s income is derived from personal sales and the second part results from royalties paid on downline member sales. Two parts make a whole.

Another way to look at it is that you get two checks.   Many times you don’t actually get two separate hard copy checks; in my company we get one electronic deposit.   Yet it is itemized so that we can still see the “two checks”.    That’s the way you need to think of it “two checks”.

I’m reminded of my days when I worked for the federal government.   Payday would roll around and our secretary would walk around to our offices and hand out paychecks. Can you even imagine if she were to thumb through the stack of checks, then say “There are two checks here for you, Laurie.   Do you want both, or just one of them?”   Bring it on, both of them, right? [Read more…] about Understanding a Two-Tiered Compensation Plan