2A. This one is rampant, compensation plans that would confuse Einstein! Watch out for a convoluted labyrinth of hurdles erected so very few can ever maximize the pay out.

It’s likely many can’t figure how they get paid let alone explain it to someone. It appears like you can earn a lot, yet it’s could actually be designed to pay as little as possible.

2B. This one really bugs me. Some plans are designed with “breakage” in mind. That means the pay plan is geared to have a big chunk of the money roll up to the company.

3. Pre-Launch, Start Up? Hot buzz words but 95% of them fail.

4. More Smoke And Mirrors. (also see #2 A & B) It’s been said the magician’s best deception is one that’s in plain sight. Companies usually fully disclose how commissions are calculated. It’s in plain sight.

But often you don’t really know the significance of what they just told you. They did nothing wrong, you and Einstein just didn’t know their math.

For example, the literature says “we pay X percent total to field” let’s say it’s 70% which “sounds” generous and beats XYZ company. But, it goes on to say things like “on BV or CV” etc. Seems more like pay “ME, ME”. BV and CV are how much of the product cost they will “actually” pay commissions on.

In this example you’re thinking 70% of that $100 item. However, the BV or CV (Business Volume etc.) is lets say $65. They just took money (they pocketed $35) off the table first. The field (total reps paid) get 70% of what’s left and the company keeps “another” 30% of what’s on the table too. Surprised?

Fully disclosed, yes. In the example they are paying 70% to the field, that’s the number your mind locks in on. But, as you can see it’s NOT being paid on the real total of revenue the field is generating!

5. Big Up Front Commission? That means their reaching deep in your wallet when you buy it. High commission per sale also means you must “sell ” extremely high cost stuff. Problem is, you’ll need to be a “Power Sales Closer” to succeed. Most people can’t stand power closers and would never want to be one so they don’t join your company. Many can get hurt financial because of the lure of big bucks.
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Carlton Jones
cljones47@yahoo.com
804-240-0956
P.S. WATCH OUT for companies that don’t seem to have a product, or questionable ones that seem to be a thinly veiled attempt at trying to “appear legal”.
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