Most direct sales companies have a two-tiered compensation plan. It’s a different structure than most compensation plans. Lack of understanding how a two-tiered plan works can lead to frustration and inability to reach full earning potential.
In short, part of the direct sales consultant’s income is derived from personal sales and the second part results from royalties paid on downline member sales. Two parts make a whole.
Another way to look at it is that you get two checks. Many times you don’t actually get two separate hard copy checks; in my company we get one electronic deposit. Yet it is itemized so that we can still see the “two checks”. That’s the way you need to think of it “two checks”.
I’m reminded of my days when I worked for the federal government. Payday would roll around and our secretary would walk around to our offices and hand out paychecks. Can you even imagine if she were to thumb through the stack of checks, then say “There are two checks here for you, Laurie. Do you want both, or just one of them?” Bring it on, both of them, right? [Read more…] about Understanding a Two-Tiered Compensation Plan