How Many People Would I Need in My Organization to Make Over $10,000?


Will the stock market rise tomorrow? Who will win the Kentucky Derby? If one knew the answers to these questions then he or she would be rich. How much one might earn in a direct selling compensation plan is the result of many moving parts and to make any sort of prediction: the compensation plan itself, percentages paid on product, profit margins of product, personal sales, down line sales, etc. are all contributing factors that are endless. Two important resources are available to consultants: (1) leading companies post average earnings disclosure charts which indicate average earnings for distributors at various levels and stages of their direct selling program; (2) many companies provide online earnings calculators which allow a consultant to plug in their own assumptions on their personal and group sales and activity, which are then used to calculate the payout based on their expected sales performance.

Estimating your earned commissions is just that, an estimate. Some of the larger companies will provide you with tools and charts in which you can use to make an educated guess on your potential earnings. Consultants who are looking to achieve a financial goal should look closely at the numbers to determine what they must do to achieve their goals.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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