How to Explain Your Compensation Plan!

Here’s a strategy for short presentations, and another one for full presentations!


If you’re like most people, your compensation plan has a lot of percentages, different payments for different products, and a lifetime supply of other factors that can cause your prospects to become confused. Especially if you’re not using visual tools. Would it be okay if I show you how to condense that information to make it easier for your prospect — and you — to digest?

Tom “Big Al” Schreiter has an awesome script that will work for any network marketing company. All you have to do is say:

“If you have a lot of people using your products and services, you will earn a lot of money. If you have fewer people using your products and services, you will earn less money. The rest of the compensation plan percentages and positions can be studied in training.”

I can tell you from experience on both sides of the fence that listening to a marketer drone on about downlines, generations, and X% + Y% = LMNOP% can be frustratingly tedious. If your prospect is unfamiliar with network marketing lingo, they won’t understand half of what you’re saying, anyway. The third sentence lets them know ahead of time that further details are too complicated to explain over a cup of coffee.

A few of my colleagues have an awesome way of talking about the residual overrides in their presentations. Instead of telling your prospects that they’ll be getting X% of what their first generation is earning, Y% of their second generation, etc., talk about the downlines as if they were children. For instance:

“In order for Mary to be promoted to SRSD, she has to help 3 people whom she signed — let’s call them her children, to make it simple — become RSD. When Mary becomes SRSD, she will start earning 15% of what each of her children are earning, regardless of their position. When she helps 3 more of her children become RSD, she’ll be promoted to ESD. Now Mary will be earning not only 15% of what her kids are getting, she’ll be getting 10% of what her grandchildren are getting.”

Like Paulo Coelho says, it’s the simple things in life that are the most extraordinary.

Make a nice day!

Author: realdealjh

Great morning, great afternoon, and great evening! My name is Jibriel Holloway, and this is where I share the things I learn on my journey of personal development and in business. Hopefully, you get something out of it that will skyrocket your life!

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s