This is the most common question and complaint I am seeing by confused Affiliates since the announcement of the Improved Comp Plan.
Under the old system, an affiliate who was earn8ing 1500VP per month would fluctuate in value. Now every EA with a standing order for 125 t-credits, for example, is worth 71 cents a month. If they order additional items the commissions go up and you have residual income without the risk of the Executive Bonus pool being flooded with extra shares or hammered by low sales this month. No more counting fractions of pennies to see if your earnings are correct.
What is also interesting is that compression is no longer limited to 45 days of sponsor inactivity. If a sponsor is not an Executive Affiliate for the month by it's last day they will pass up the override to the next EA or above sponsor above them. This compression happens throughout your organization and could people outside your normal qualified tiers into your commission earning tiers. Imagine a once inactive affiliate making it to PTL on your 5th generation but their sponsor and their sponsor's sponsor is inactive. You as an Executive Affiliate would suddenly be the recipient of a monthly commission override on this person who is compressed to your 3rd tier.
This can go on through unlimited tiers.
I have a close friend who got into a spat with a forum moderator and walked away from his SFI business he has built and nurtured for nearly 7 years. He had numerous team leaders and executive affiliates in his downline and they have now compressed up by at least one tier to other affiliates. Some of them have been orphaned or have sponsors who are not making it to EA each month because they can't afford an Auto-Delivery and don't have the PRM sales to make up the gap. These also have compressed to upline EA this month who will get overrides on their positions.
The elephant in the room though is the Direct Commission going down to 20% from its prior 45% of the Commission Volume. This had to happen to load more profit into the Tiered Overrides and to the new 4 Co-Sponsors program that ensures there is plenty of support to help any affiliate succeed in SFI.
Because of this, there is a potential for some affiliates to see immediate short-term lost revenue.
Fact is this. If you have spent all of your time building on your first Tier PSA and have none that have active referrals of their own you could see your revenue go down with very little offset. If you have been building your tiers below you with OptiBuild or manual re-assignments and have actively sponsored and helped your PSA to fill out their own PSA and below structures, You will likely gain added earnings. If you are an STL or Above you likely have a considerable new earnings structure below you as you earn 4% of the CV on all team leaders and EA below you on multiple tiers.
I will likely break about even with the potential to kill it on my CSA earnings to make a larger profit than last month but I can't be 100% sure until this initial month is in the books and June's earnings reports are in. I know PTL and DTL Leaders will likely see huge increases in network earnings.
Promoting the Compensation Plan to new PSA.
Keep in mind that the new PSA knows nothing of the old program for compensation unless you mention it. They are looking at the deal that they have now and here are some things you gain off the promotion of the new comp plan.
1. No more explaining what a Versa Point means to their income. Instead of profit sharing that fluctuated with sales and free shares given you now only earn off sales within your organization. Tell them VP only serve to establish their rank and performance in the system which will judge how many tiers of compensation they profit from.
2. No more pressure to buy or buy more to get higher ranks. The first 3 tiers of compressed Overrides come from Executive Affiliate status which can be earned through PRM referrals and actions to run their business and learn about it, or can be purchased via a low cost set of products that include every day items like vitamins and beauty aids or t-credits and even PSA of their own to grow their business. Make sure they are aware of the Smart Start program www.sfimg.com/smart
and the Builder Bundle. Both are affordable ways to not only build their business but also be duplicated by their own teams.
3. Simple to explain where earnings come from. Tell them that you earn 20% direct commissions on purchases throughout the Zing Network of sites via their unique affiliate gateways. They also earn 4% overrides on up to 12 levels of income from members referred in their tiered structure. Compression will pass up overrides on any non-Executive Affiliates generated sales and could have you earning from sales on 50+ levels below you. You further are offered CSA or Co-Sponsored Affiliates when you are an Executive Affiliate and earn 8% commission Overrides on their sales/purchases as well.
It's that simple. Now more than ever it benefits us to build deep and profitable teams.
Building profitable teams will improve retention. A PSA who has at least one active PSA under them at 3 months is 100 times more likely to be here 6 months to one year later. If they can see their path to profits or have their initial monthly Auto Delivery paid for from profits in 1 year they are likely going to still be here 7 years later and have been to Silver Team Leader or above like I have.
I can tell you that my rank this month is nothing compared to the ranks I will reach building my PSA up and teaching them to build their teams as well. The Opti-Build program has helped me start building a successful downline and reach a point of stability instead of constantly starting over when people left because they had few to no active downline members. I have lost 2 Silver Team Leaders, and a half dozen Bronze Team Leaders over the past 7 years with countless Executive affiliates because I wasn't doing all I could to help them turn their business profitable.
SO sponsoring and support becomes more important than ever before under the new plan. It's no longer voluntary but almost compulsory to become an Awesome Sponsor.
So even if you take an initial income hit you still have a path to profits sitting in your existing team that is powerful and can shore up the weakest points in your business. Some revamping of your business may be in order but you will thank Gery later when you look at taking vacations and retiring early, buying a car or house out of commissions or other great feats.
For more information on potential earnings visit my thread at: www.sfimg.com/forum/thread?id=125130
Andy Zeus Anderson