grassroots distributors and executive level
leadership is too great, an organization will never reach its full potential
growth. The mid-level leader is that bridge. A well-rewarded mid-level leader
segment will be energetic and drive the growth.
The incentive features for this segment need
to be very creative and scientifically designed. A successful incentive program
should avoid encouraging plateaus or "parking lots." When there are wide gaps
between achievement levels, leaders have a tendency to stagnate on the front
edge of the gap. Also, if the plan pays too much too soon, it will short-change
the leader from achieving his full potential. Why work harder and pull from deep
within your best effort if the incentive isn't there?
A plan with carefully designed transitional
stages will empower the leader to reach his highest potential. The journey to
one's ultimate best isn't natural or easy. A wise compensation plan will
encourage the right behavior at the right point in the leader's ascension.
The creators of a compensation plan use the
various bonuses, group volume qualifications and structural requirements to mold
a multi-talented team of leaders into a synergistic growth machine. The
following are the features that have been designed to empower this leadership
tier.
Infinity Bonus: The infinity
bonus is an incentive that rewards the mid-level leader who begins to drive the
growth in-depth, creating a strong foundation for a secure and long-lasting
residual income. While the three level bonuses primarily reward the enroller and
individual that works with their immediate downline distributors, the Infinity
Bonus rewards the individual that assumes a wider range of leadership
responsibilities.
The infinity bonus encourages and rewards a
leader to help distributors from his fourth level down. It is important to
create a two-step Infinity Bonus so that a leader will be encouraged to develop
leadership in-depth. Without a two-step Infinity Bonus, there would be a
temptation to avoid developing a leader that would block your infinity bonus.
The Diamond Infinity Bonus of 6% is for the
mid-level leader that is on his way up the ladder of leadership. The
Presidential Diamond Infinity Bonus of 12% targets the aggressive and more
experienced mid-level leader that is developing other leaders. This bonus can be
substantial.
The three-level volume requirement
for the Diamond position (and above) encourages the leader to develop his
leadership skills and build a more solid foundation for future success. There is
a tendency for leaders to skip over grassroots distributors and work with
individuals that already have marketing skills. In the long-run, this practice
will rob the leader of success through attrition and weak spots in his downline.
The three-level volume requirements
of $3,000, $10,000 and $20,000 for these mid and upper-level leaders serve as
tools in the creation of the escalator of success.
The personal enrollment requirements:
The right balance in personal enrollment requirements is essential for maximum
growth. Requiring too many enrollments will rob the broader group of the
leader's organizational skills. Core leaders need to be able to work deep within
their organizations. Requiring the leader to sponsor too wide will keep this
from happening.
It is wise to require a leader to enroll a
moderate number of distributors. A leader should have the best mentoring skills.
The leaders within an organization create a foundation of experience, knowledge
and skills that permeate throughout the organization. These leaders are a type
of lifeline to the organization. In my 37+ years of network marketing, I have
observed that, when a core group of leaders leaves a company or organization,
the unit falls apart and excessive attrition takes place.
The core followers that surround a leader
duplicate many of the leader's skills and characteristics. Requiring each leader
to mentor a personal group of disciples will only strengthen the organization's
foundation.
Presidential Diamond Bonus: As
the more experienced mid-level leader climbs the ladder of leadership, he will
develop a number of other leaders at his same achievement level. A compensation
plan must reward the leader for doing so. 4LifeTM
rewards the Presidential Diamond for developing leaders at the PD level.
A Presidential Diamond will receive a 3% bonus
on his first downline Presidential Diamond's business through the 3rd level of
the second downline Presidential Diamond's business. When the first 3% bonus is
blocked at the 4th level of the second downline PD, the Presidential will
receive a 3% bonus from the 4th level downline through the 3rd level of the
third Presidential Diamond.
International
Diamond Requirements:
- Purchase 100LP in product each month.
- Set up either an autoship or back-up autoship for at
least 100LP.
- Enroll ten distributors that purchase 100LP per month. At
least five of these distributors must be on your first level.
- Purchase a distributor kit.
- You must have a total three-level volume of at least
20,000LP each month. (uncompressed)
- You must have two separate legs with a qualified
Presidential Diamond in each leg.
Rewards:
- Volume purchase rebate - 4LifeTM
will pay you a bonus of 25% on all of the LP from personal purchases above
your monthly purchase of 100LP.
- A bonus of 25% on all of your
Preferred Customers' purchases
- A Rapid reward bonus of 25% on all of the
first purchases of new distributors enrolled by you
- A bonus of 2% on all first level
distributors
- A 25% bonus on all second level
distributors
- A 5% bonus on all third level
distributors' customers
- A guaranteed 4th level 12% infinity bonus
- A 12% infinity bonus from the 5th level
down to and including the 3rd level of the next qualifying Diamond,
Presidential Diamond or higher rank
- A 6% bonus from the 4th level of the
first Diamond downline through the 3rd level of the first Presidential
Diamond or higher rank
- A 3% bonus from the 4th level of the
first Presidential Diamond down through the 3rd level of the second
Presidential Diamond
- A 3% bonus from the 4th level of the
second Presidential Diamond down through the 3rd level of the third
Presidential Diamond
- A 2% bonus from the 4th level of the
first International Diamond down through the 3rd level of the second
International Diamond
- A 2% bonus from the 4th level of the
second International Diamond down through the 3rd level of the third
International Diamond
- The privilege of participating in the
Power Pool Bonus
- A share of the Premiere Bonus Pool (2% of
the International Diamond Pool)
An example of how the International Diamond Bonus works:
International Diamond |
Level 1 |
2% |
|
|
Level 2 |
25% |
|
|
Level 3 |
5% |
|
|
Level 4 |
12% |
|
|
Level 5 |
12% |
Diamond |
|
Level 6 |
12% |
Level 1 |
|
Level 7 |
12% |
Level 2 |
|
Level 8 |
12% |
Level 3 |
|
Level 9 |
6% |
Level 4 |
|
Level 10 |
6% |
Presidential Diamond |
|
Level 11 |
6% |
Level 1 |
|
Level 12 |
6% |
Level 2 |
|
Level 13 |
6% |
Level 3 |
|
Level 14 |
3% |
Level 4 |
1st Presidential Diamond 3% Bonus Begins
|
Level 15 |
3% |
Level 5 |
|
Level 16 |
3% |
2nd Presidential Diamond |
|
Level 17 |
3% |
Level 1 |
|
Level 18 |
3% |
Level 2 |
|
Level 19 |
3% |
Level 3 |
|
Level 20 |
3% |
Level 4 |
2nd Presidential Diamond 3% Bonus Begins
(This bonus is paid through 3rd level of either the 3rd Presidential
Diamond or the 3rd level of the 1st International Diamond whichever
comes first) |
Level 21 |
3% |
1st International Diamond |
|
Level 22 |
3% |
Level 1 |
|
Level 23 |
3% |
Level 2 |
|
Level 24 |
3% |
Level 3 |
|
Level 25 |
2% |
Level 4 |
1st International Diamond 2% Bonus
Begins |
Level 26 |
2% |
2nd International Diamond |
|
Level 27 |
2% |
Level 1 |
|
Level 28 |
2% |
Level 2 |
|
Level 29 |
2% |
Level 3 |
|
Level 30 |
2% |
Level 4 |
2nd International Diamond 2% Bonus
Begins |
Level 31 |
2% |
3rd International Diamond |
|
Level 32 |
2% |
Level 1 |
|
Level 33 |
2% |
Level 2 |
|
Level 34 |
2% |
Level 3 |
|
Level 35 |
0 |
Level 4 |
|
Gold International
Diamond:
- Purchase 100LP in product each month.
- Set up either an autoship or back-up
autoship for at least 100LP.
- Enroll twelve distributors that purchase
100LP per month. At least six of these distributors must be on your first
level.
- Purchase a distributor kit.
- You must have a total three-level volume
of at least 20,000LP each month. (uncompressed)
- You must have three separate legs with a
qualified International Diamond in each leg.
- You must have at least 250,000LP in
overall organization.
Rewards:
- Volume purchase rebate - 4LifeTM
will pay you a bonus of 25% on all of the LP from personal purchases above
your monthly purchase of 100LP.
- A bonus of 25% on all of your Preferred Customers'
purchases
- A Rapid reward bonus of 25% on all of the first purchases
of new distributors enrolled by you
- A bonus of 2% on all first level distributors
- A 25% bonus on all second level distributors
- A 5% bonus on all third level distributors' customers
- A guaranteed 4th level 12% infinity bonus
- A 12% infinity bonus from the 5th level down to and
including the 3rd level of the next qualifying Diamond, Presidential
Diamond or higher rank
- A 6% bonus from the 4th level of the first Diamond
downline through the 3rd level of the first Presidential Diamond or higher
rank
- A 3% bonus from the 4th level of the first Presidential
Diamond down through the 3rd level of the second Presidential Diamond
- A 3% bonus from the 4th level of the second Presidential
Diamond down through the 3rd level of the third Presidential Diamond
- First International Diamond Bonus: A 2% bonus from the
4th level of the first International Diamond down through the 3rd level of
the second International Diamond
- Second International Diamond Bonus: A 2% bonus from the
4th level of the second International Diamond down through the 3rd level of
the third International Diamond
- A 2% bonus from the 4th level of the first Gold
International Diamond down through the 3rd level of the second Gold
International Diamond
- A 2% bonus from the 4th level of the second Gold
International Diamond down through the 3rd level of the third Gold
International Diamond
- The privilege of participating in the Power Pool Bonus
- A share of the Premiere Bonus Pool (2% of the
International Diamond Pool)
An example of the Gold International Diamond bonus:
Gold
International Diamond |
Level 1 |
2% |
|
|
Level 2 |
25% |
|
|
Level 3 |
5% |
|
|
Level 4 |
12% |
|
|
Level 5 |
12% |
Diamond |
|
Level 6 |
12% |
Level 1 |
|
Level 7 |
12% |
Level 2 |
|
Level 8 |
12% |
Level 3 |
|
Level 9 |
6% |
Level 4 |
|
Level 10 |
6% |
Presidential Diamond |
|
Level 11 |
6% |
Level 1 |
|
Level 12 |
6% |
Level 2 |
|
Level 13 |
6% |
Level 3 |
|
Level 14 |
3% |
Level 4 |
1st Presidential Diamond 3% Bonus Begins |
Level 15 |
3% |
Level 5 |
|
Level 16 |
3% |
2nd Presidential Diamond |
|
Level 17 |
3% |
Level 1 |
|
Level 18 |
3% |
Level 2 |
|
Level 19 |
3% |
Level 3 |
|
Level 20 |
3% |
Level 4 |
2nd Presidential Diamond 3% Bonus Begins |
Level 21 |
3% |
3rd Presidential Diamond |
|
Level 22 |
3% |
Level 1 |
|
Level 23 |
3% |
Level 2 |
|
Level 24 |
3% |
Level 3 |
|
Level 25 |
2% |
Level 4 |
1st International Diamond 2% Bonus
Begins |
Level 26 |
2% |
1st International Diamond |
|
Level 27 |
2% |
Level 1 |
|
Level 28 |
2% |
Level 2 |
|
Level 29 |
2% |
Level 3 |
|
Level 30 |
2% |
Level 4 |
|
Level 31 |
2% |
2nd International Diamond |
|
Level 32 |
2% |
Level 1 |
|
Level 33 |
2% |
Level 2 |
|
Level 34 |
2% |
Level 3 |
|
Level 35 |
2% |
Level 4 |
2nd International Diamond 2% Bonus
Begins |
Level 36 |
2% |
3rd International Diamond |
|
Level 37 |
2% |
Level 1 |
|
Level 38 |
2% |
Level 2 |
|
Level 39 |
2% |
Level 3 |
|
Level 40 |
2% |
Level 4 |
Begins 1st Gold International 2% Bonus Begins
|
Level 41 |
2% |
1st Gold International |
|
Level 42 |
2% |
Level 1 |
|
Level 43 |
2% |
Level 2 |
|
Level 44 |
2% |
Level 3 |
|
Level 45 |
2% |
Level 4 |
|
Level 46 |
2% |
2nd Gold International Diamond |
|
Level 47 |
2% |
Level 1 |
|
Level 48 |
2% |
Level 2 |
|
Level 49 |
2% |
Level 3 |
|
Level 50 |
2% |
Level 4 |
2nd Gold International 2% Bonus Begins |
Level 51 |
2% |
3rd Gold International Diamond |
|
Level 52 |
2% |
Level 1 |
|
Level 53 |
2% |
Level 2 |
|
Level 54 |
2% |
Level 3 |
|
Level 55 |
0 |
Level 4 |
|
Platinum Diamond:
All requirements and rewards for this position are the same as
for the Gold International Diamond except for the total organizational volume of
1,000,000LP.
The
Science Behind the Upper-Mid Level and Executive Leader Features
International Diamonds, Gold International Diamonds & Platinum
The compensation features must also reward the
leaders for identifying and training other leaders. Some pay plans discourage
leaders from helping other leaders reach new levels of achievement. Sometimes it
means a cut in pay for one leader to help another leader advance. 4LifeTM
uses the three-level volume requirement of 20,000LP to encourage the executive
level leaders to develop strategies, systems and training that will work for
grassroots distributors. The top level leader cannot afford to invest, on a
continuous basis, his personal time in maintaining three-level volume.
The majority of three-level volume is produced
by grassroots distributors. If an executive leader spends a majority of his time
building and replacing what has fallen away, he doesn't have time to develop
quality leadership throughout the world. This predicament pressures the leader
to develop automatic systems, marketing tools and effective training that will
support grassroots distributors. Although leaders attempt to create these
strategies, generally, they fall short.
The three-level volume requirement is a
powerful force to encourage the leader to take time to create more effective
strategies for the grassroots distributor. Another purpose of the three-level
volume requirement is to appropriately reward the upline sponsor who brought the
leader into the business. There is a tendency for the executive leader to only
fulfill whatever volume is required and then move deeper within the organization
in search of other leaders. If the three-level volume requirement is too low,
the sponsor isn't rewarded appropriately.
A careful balance is needed between
three-level volume and overall group volume. If the three-level volume is too
high, it will rob the overall organization of the leader's personal skills. If
the three-level volume is too low, there will not be enough incentive to
motivate the leader to develop the best possible systems and strategies for
grassroots distributors.
4LifeTM uses
a combination of structural requirements and overall group volume to create the
"stepping stone" process that encourages the development of leadership
throughout the organization in order to build a strong foundation for continuous
growth and the retention of its distributors.
Volume requirements without structural
requirements have a tendency to leave large groups of distributors stranded
without intermediate levels of leaders to manage the growth of that particular
group. It is important to have leaders of various levels of experience scattered
throughout your organization. These leaders serve as pillars supporting the
superstructure of your organization. Every distributor will function better when
there is a leader within reach.
International Diamonds are required to have
one Presidential Diamond in two different legs. Each of these PDs are required
to have one Diamond in two different legs. This equation, theoretically, could
provide six leaders per 20,000LP. A smart leader will try to position leaders in
such a manner that every 20,000-30,000LP will be supported by at least six
leaders. It is better to work smart and save yourself a great deal of headaches
in the future. An organization without sound management will suffer a great deal
of attrition.
The group volume requirement of 250,000LP for
Gold International Diamond, along with the two 2% Gold Bonuses, creates the
potential for very deep penetration. This category is for the "super
heavyweights." A lower volume requirement would have created excessive blockage
and limited the depth of penetration. In order to attract the "super
heavyweights" it is important to provide the potential for deep penetration.
The Premiere Bonus of 2% creates an incentive
for a team paradigm. The influence of a Gold International Diamond has a
tendency to cross organizational boundaries. This bonus is a reward for such
influence. In addition, the company needs the Gold Internationals to work
together unselfishly in order to help develop company-wide strategies. The
Premiere Bonus is 2% of the total international sales volume. One-half of this
bonus pool is divided equally between International Diamonds and above. The
other half is decided based on the volume of each participant.
The Platinum bonus is one percent of the total
International sales volume. This pool is divided between Platinum International
Diamonds.
In my 37+ year career, I have never
encountered a compensation plan so scientifically designed. The 4LifeTM
pay plan addresses the needs of each segment of networkers better than any other
program that I have studied. The purpose of a compensation plan is to encourage
and reward productive behavior. This compensation strategy addresses these core
purposes better than any other pay plan that our research team examined.
- Mike Akins
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