Perpetual Leverage – A Legitimate Compensation Plan

In order to be successful in any work at home business, a legitimate compensation plan has to be in place. More importantly, this compensation plan must be perpetual for you to leverage the maximum amount of profit available. Perpetual by definition means that something will be lasting for all time or occurring over and over. Having this type of leverage of the compensation plan is valuable.

In order to know how to leverage the compensation plan, you must totally understand your companies plan. Some key points to take note of are:

  • What are the products? You really need to understand what the product line of the company is. If you do not know what you are selling then you cannot sell it.
  • What is the profit from each product? Knowing what the profit margin of each product will allow you to focus your main sales toward that one product if you choose. You should still market the others, as multiple sales of those will usually equal one larger sale.
  • Do you have to obtain certain sales levels in order to receive maximum profit margins? Many companies require you to obtain certain sales volume or at the very least, have purchased the products you are marketing in order to receive the maximum profit from that product. If you choose not to purchase a product and you sell one of those products, your sales commission will usually “roll up” to the next qualified member (usually your sponsor). This is why it is important to establish yourself at the top level right out of the gate. This is where the true power of perpetual leverage is achieved.
  • How many levels deep in your team do you get compensated for? Understanding how many levels deep you are compensated for is crucial. Some companies will only pay you for your direct sales and that is it. Others may pay you for your sales and the one person you personally sponsored. The top companies will pay you for as many as five levels deep. This is where your true lifetime residual income will come from. This is why you must build a team that is very wide and then assist them doing the same. Some companies have a bonus pool that is a great reward and incentive for training others to be successful.
  • Are company subscriptions such as marketing systems and training commissionable? Some companies will compensate you for your team’s subscriptions. These subscriptions are from marketing systems or training platforms that are offered. These commissions are generally small, but with a wide team, they can add up fast and are perpetual.
  • Are company events and training seminar tickets commissionable? Company events and training seminars are hard to get team members to attend. But when the company makes those tickets commissionable, attendance skyrockets. Again, these commissions may be minimal, but add up quickly.

As you can see, there are several factors that must be met in order to have perpetual leverage of a legitimate compensation plan. Knowing and understanding your compensation plan is vital. If you do not know what to leverage, you cannot leverage it. Affiliating yourself with a work at home company that has a legitimate compensation plan and can show you how to leverage it is one of the most important steps that you can take.