Tuesday, October 16, 2012

The "Compensation Plan" in Network Marketing

Most people who select an opportunity in Network Marketing focus almost exclusively on the "Compensation Plan".In reality it takes more than a compensation plan to produce adequate financial results.
A compensation plan alone is something static and only one element of a "Compensation Program" (something more comprehensive and that "goes beyond").

It takes other factors beyond the compensation plan to activate the "Compensation Program", such as: owners of the company, economic soundness of the company, the product support team, training system, philosophy and market strategies.
Only when these factors are working together it is possible for an organization to experience a strong and sustainable growth.
Companies that promoted the compensation plan as major factor did not understand the principles on which Network Marketing is based.
If we look at it in simple terms, all compensation plans are a multiplication, percentages set or pre-established, multiplied by the volume points that distributors move.
This means that the compensation plan of any Network Marketing company is maximized to the extent that the distributor knows how to create a network which is constantly growing reflecting the growth of people and thus volume points. 
So what is really important?
It is important to have a good compensation plan but it is crucial to have the knowledge to maximize and activate this plan.

The main "types" of compensation plans in Network Marketing are:


Matrix
Created in the 80s, this type of plan is losing popularity because it has limited width and depth in the network that one can creat, which limitis your income (the amount of money you can make) and fosters lazy "downlines".

Stepped or rupture
The oldest and, statistically, the most used plan in the industry.
As you go "up the ladder", you get higher and higher product discounts and commissions on product sales but at the same time greater obligations to purchase products for you.
As your "downlines" obtain higher commissions by volume group, yours are decreasing on average 2% to 5%.
The fact that it pays more for your "frontlines" than depth, leads to distributors to be focusing mainly on recruiting all the time.
It is called "rupture" because at times some of the people who are in your network reach certain qualifications and break or become separated from their group along with its members.
Often, to achieve the required volume and earn their commissions, distributors purchase of a surplus of product.
This plan is more focused on direct sales and recruiting frontlines than on teamwork and duplication.
Its use is declining rapidly and none of the many companies created after the 90s are using it.

Binary
It is based on the principle of two arms or two legs.
This type of plan has limited width.
In this type of plan the emphasis is on recruiting people (for you to capitalize on it you have to have balance the right and left lines). If you don't do it, you cease to receive commissions.
This is the biggest disadvantage of this plan, if the member has not leveled their two organizations (the right leg and left leg) he will not receive large checks since the company pays based on the weakest organization.
This is unfair. Why charge only the weaker leg if there are plans in the industry that pay for all legs including the strongest?
Another disadvantage of this type of plan is that it attracts many people with false expectations, saying that the person only has to enroll two people and other people will fall in their organization from their sponsor's surplus. These type of people come into Network Marketing with the belief that there is no need to do anything because your "upline" will do everything; they will lose motivation with ease and abandon the business. This is why binaries have little retention, recruiting many people but retaining very few.
For most of the leaders, their income comes from the "starters kit" when recruiting people, and because of that they do not produce true residual income in the medium and long term.

Unilevel
All distributors you affiliate are your first level, those affiliated by people in your 1st level are your 2nd level and so on.
At present, "hybrid unilevel" allows unlimited frontlines and depth when a series of requirements are met, according to each company, when you have a certain volume or reach a certain qualification.
It is a just plan, it does not require the purchase of a high volume, therefore allowing for a greater retention. There are bonus payments for the excess volume you move monthly. It applies "dynamic compression", which provides the organization with a great synergy increasing the income capacity of the distributors.
Currently 37% of companies in Network Marketing us this type of plan.

4Life offers us a plan "balanced and with dynamic compression", with a potential to earn good income in its depth. This balance allows both the least experienced distributors as well as the most experienced ones to benefit uniformly.
The 4Life compensation plan is structured in such a way that it balances the commissions between the 3 main categories of distributors (small, medium and large), ensuring a more just and secure income for all.





Tuesday, April 24, 2012

"Passport to Freedom" (4Life Convention): day 4

Day 4 and last day of the Convention was truly "the cherry on top of the cake" and started with keynote speaker J.R. Martinez, who won the 13th season of ABC’s “Dancing with the Stars” and was featured on the November 7, 2011 cover of People magazine.

In 2003, J.R. was severely burned after a Humvee explosion during a military deployment in Iraq but says it was a change for the better. “I went from fighting for my life to helping inspire others to fight for their own. I'm extremely grateful for that day because it led me into this life. I am living the American dream.”

What an inspiration J.R.'s story was to all of us present at the event!


(Pictured above: J.R. Martinez on stage)

The afternoon started with 4Life prize giveaway in which the company distributed 100,000USD in prizes. Among those prizes there were 15 X 5,000USD prizes.
Our organization brought home two prizes: great friends and Diamonds Martha Silva and Elvira Farinha won 500USD and 5,000USD respectively.
What a nice way to end the Convention!




















(Pictured above: great friend and leader Elvira Farinha won a 5,000USD prize...look at that big smile of hers)

The afternoon session ended with the 5th and last "General Session" with Diamond International Platinums Juan Rosado, Damaris Zapata, Yadira Olivo and Dr. Hermínio Nevarez.
"Slavery is so much easier, Freedom requires responsibility!" (Dr. Hermínio Nevarez)
"To be free is to have the time and money to do what we want to do!" (Dr. Hermínio Nevarez)






(Pictured above: INT Founder and our great leader and mentor Dr. Hermínio Nevarez during his speech)

During an interview with ABC Action News 6 reporter Katherine Scott, Steve Tew (4life President) was asked why 4Life chose Philadelphia as a location for its international convention.
His response: “Our theme for the event is Passport to Freedom. We felt there is no better city in the world that resonates freedom than the city of Philadelphia.”

At this Convention we have declared our Independence (we even had the "Liberty Bell" on stage at the end to symbolize the importance of the event to all of us)!
Declare yours today!!!



(Pictured above: 4Life Founders David and Bianca Lisonbee along with 4Life President Steve Tew at the closing ceremony and "Declaring our Independence") 


(Pictured above: great friends and leaders Hélder Medeiros and Tânia Mendes after having declared and signed their Independence)



(Pictured above: great friends and leaders Leandra Camacho and Gonçalo Pimenta after having declared and signed their Independence)

(Pictured above: Myself and my great friend, mentor and leader Carlos Rocha signing my "Declaration of Independence" the morning after the Convention was over)

Last week, I declared my independence from everything that was keeping me from achieving my dreams.
I am commited to build a legacy of freedom that I can pass on to my family-a life of more choices, travel, unrivaled health, fulfillment and happiness.

Declare your Independence today!

"Passport to Freedom" (4Life Convention): day 3

We started day 3 of the "Passport to Freedom" Convention with a INT team (our team) photo.
People say "one picture is worth 1,000 words" so here's the picture where one can see that the large majority of distributors at the 4Life Convention in Philadelphia were INT members.






(Pictured above: International Networkers Team Convention photo)

"Success Rally" was held during the morning with some of the top world leaders on stage.
Great and inspiring words and strategies to make our businesses grow were passed on to the Distributors.
We are very lucky and privileged to be able to learn from such oustanding leaders!



(Pictured above: Gold International Diamond Jeanny Serra on stage during her presentation)

Just before lunch we took an historical team photo with the leaders from our organization that were present at the Convention.


(Pictured above: our organization "team photo")

The afternoon started with the "Health Sciences Advisory Board Workshops" where we had the unique opportunity of learning more about "Transfer Factors" and our incredible products directly from 4Life Scientists. Unique!

We closed "day 3" celebrating success at the "Recognition Gala" late in the afternoon.
Incredible number of leaders from our organization and from several countries as "Diamonds", "Presidential Diamonds" and "International Diamonds"!








(Pictured above: Our "Diamonds" from Portugal present at the event)
















(Pictured above: Our "Diamonds", Abel and Penina, from Mozambique present at the event)
















(Pictured above: Our "Diamonds", Nivaldo and Bruna, from Brazil present at the event)



(Pictured above: Our "Presidential Diamonds" present at the event on stage being recognized)



(Pictured above: Our "International Diamonds" present at the event ready to go on stage)



(Pictured above: Leaders from our organization celebrating with INT Founders and our Mentors Dr. Hermínio Nevarez and Yadira Olivo at the end of the "Recognition Gala")

So proud to see the Portuguese flag on stage so many times and how committed and positive people from a small, but brave, country is showing to the World that "yes, we can"!
Our moto: "From Portugal to the World"!!!

Thursday, April 19, 2012

"Passport to Freedom" (4Life Convention): day 2

Day 2 of the "Passport to Freedom" 4Life Convention was a blast!
More than 8,000 people are in attendance from 74 different countries! WOW!!!

We started the day with a 4Life Corporative presentation.
Results for both the year 2011 and for the 1st quarter of 2012 are absolutely amazing all over the World and have resulted in another all-time sales record last month (March 2012), in 7 new Gold International Diamonds (2nd highest level of achievement at 4Life) and 1 Platinum International Diamond (highest level of achievement at 4Life) and in 4Life being considered the 45th company overall in the Network Marketing Industry (year before was 62nd)!
At this rate, we know that within 5 years 4Life will be in the top25 and within 10 years within the top 5!!!
Excellent results and growth, specially when we have to consider that 4Life is much younger in age than other major companies in Newtwork Marketing!










(pictured above: over 8,000 people from 74 countries in attendance at the 4Life Convention)










(pictured above: Venezuela's last month results, an example of 4Life's growth around the World)

New products were officially relesead during the morning.
Harvard Business School says that for a Network Marketing business to be excellent it needs unique, exclusive, high-quality products and we have all that.
New products launched today are: VISTA, an exclusive and unique 4Life product for eye health and a new version of "ENERGY" (the most amazing energy product) in a Berry flavor.











(picture: new product launch today at the Convention)

Luch time was memorable as we had the opportunity to have a Business Luncheon with the great Stephen M. R. Covey with the theme "Speed of Trust".
What an incredible learning experience and a memorable moment for all of us present!











(pictured above: Mr. Steven M. R. Covey during his fabulous training)

During the afternoon we had a Platinums vs. Executives Basketball game, a Fundraiser event.
The Distributors team beat the Executive team...but the winners are the children that will benefit from the funds that we raised today.











(pictured above: the Fundraiser basketball game)

We finished the day in great style, with an International Networkers Team (INT) Rally.
We had training from some of the top Leaders at INT and we celebrated success and our 12th anniversary!
At the end of the Rally, the new INT Convention was announced: Auditorio Nacional de México nos dias 5 e 6 de Abril de 2013!












(pictured above: the recognition of the new members of the "1 Million Club", leaders with volume in excess of 1 Million LP's per month)

Today was the reassurence that we do have the greatest opportunity (company, products, team and educational system) that ever existed in the history of Network Marketing Industry in our hands!!!
We are prepared for another business cycle (business cycles in Network Marketing go from one Convention to the next and so on...) of unprecedented growth both in our team and our company towards that goal of 1 Billion USD worth of revenue for the company in the next couple of years!
We will do it!

The World needs solutions, positive people, people that move forward.
The World needs us and we are the solution!

Wednesday, April 18, 2012

"Passport to Freedom" (4Life Convention): day 1

The "Passport to Freedom" 4Life Convention started today, April 18th 2012, in Philadelphia, PA with thousands of Distributors attending from all over the World.

My day started with a privileged presence on the 7th "Global Team" (INT) meeting during the day.
Learning from and being together with such amazing human beings and top leaders (the very best in the Network Marketing Industry) is a unique and priceless experience!
Today's meeting was surely a memorable learning and sharing experince for all of those present.
New tools were announced and made available, new and important information was supplied and also "top notch" training was provided.
A new business cycle will start next monday (right after this Convention is over) and it will last until the next Convention. Big, huge things are coming our way...and we're prepared!













(picture above: Dr. Hermínio Nevarez during his morning training at the "Global Team" meeting)

At night we had the "Freedom Festival Opening Party", with lots of fun and people from all over the World celebrating the start of the 4Life Convention.
Lots of great energy in the room. We experienced a festival of culture, tradition, entertainment, food and freedom!












(picture above: thousands of Distributors from around the World celebrate at the opening party)












(picture above: Leaders from Portugal celebrate with Leaders from Latin America)

Today, I declared my independence from everything that was keeping me from achieving my dreams.
I am commited to build a legacy of freedom that I can pass on to my family-a life of more choices, travel, unrivaled health, fulfillment and happiness.

And you, have you declared your freedom?

Thursday, March 15, 2012

It's time for commitment, it's time for you to take charge of your future








We, at INT, are outraged with what’s going on in the World as well!
But we do not just sit around complaining and hoping for the solution to our future to arrive via UPS. It’s not going to happen!
The World has changed and continues to change every second at an incredible pace.
The government or your boss are concerned with their own rescue, they are not going to rescue your life and your future…it's not going to happen my friend.
You need to react, to take full responsibility, commit and do it yourself!
We all need to do more and better every day!
The World needs committed&positive people and solutions!
We, at INT, fight for our futures, we are determined on providing a solution, we are determined on helping people to succeed and in leaving a legacy to future generations.
There’s much abundance in the World, there are many opportunities!
The World needs people with enthusiasm, energy, strength…people who move forward and that want to do it!
It’s time for you to take charge of your future and the future of your family!!!

Tuesday, January 10, 2012

Welcome the new and extraordinary

A new year just started and it’s time for the usual “New Year's Resolutions”.
I want this year of 2012 to be even better and more abundant at all levels that the year 2011.
It’s just as simple as this: for that to happen I need many new things and several new people to come into my life.

When we have a sense that we are not moving as fast as we would like in our lives it is necessary to empty our lives of some old things, maybe even some people, to create the necessary space for something new and extraordinary to enter our lives!
It all has to do with energy flow. It’s how the Universe works.

At the start of this year, I decided to go further and invested several hours of my time creating space, letting go, throwing out what I do not love and/or I do not need in my life. Getting rid of all that we hold "because one day it will be necessary" at the office, wardrobe and everywhere around the house.
In order for us to receive, first we must let go.
I am keeping only what pleases me, which I effectively love and/or know to be important in my life.

I am letting go of the old and obsolete, setting goals for 2012, preparing a plan of action and respective strategies.
Of course I’ll be also putting plenty of action into it (it is action that makes things happen).
I know that the universe will end up filling that newly open space wisely and in an excellent way!










Welcome the new and extraordinary in your life in 2012!

To your success!

JC Loureiro