In the direct selling world, there are three basic compensation plans that companies use: binary, breakaway, and unilevel. Of the three, SALT WAVE decided that a unilevel plan was the best option for SALT WAVE CLUB MEMBER Why?
The answer is in the comparison.
What are the three types of compensation plans?
Only two people can be placed on your frontline.
Compensation is based on the group volume of each leg.
Commissions are usually paid on the weaker leg.
This plan is not driven by levels, but the volume within an organization is limited for payouts.
When a distributor doesn’t qualify, commissions return to the company.
Your business-focused downline breaks away from your team when they decide they want to build for themselves.
There are monthly team volume requirements for all leaders.
When a leader breaks away, they take their volume with them.
Leaders are then paid on the number of generations of downline groups.
Each builder is paid on individual levels.
Structure is very important. The placement of individuals in your downline is key.
Requirements for rank and bonuses are based on OV (team volume) and width.
There are no limits on width or depth, but you are only paid on a limited number of levels (FIVE IN SALT WAVE).
What are the pros and cons of each plan?
The plan is easy to explain.
There are frequent payouts.
Usually people are only paid on their weakest leg. There is no reward for the leg that represents the greatest amount of effort.
You have to have two legs to get paid.
The plan faces regulatory challenges, both from the FTC and abroad.
It is only good for single-product companies.
It is more beneficial for business owners than consumers.
Revenue is not continuous—it will be up sometimes and down just as quickly.
Your payout could be very large.
It is a great plan for those with exceptional recruiting and selling skills.
The plan itself is difficult to understand.
Distributors have a tendency to stockpile product.
The plan pays the highest levels the most money, while significantly less goes to the lower levels.
There is a low retention rate.
It creates competition within the organization.
It provides a great option for part-time distributors.
There are supplemental bonuses.
The payouts are large.
There are no limits on the number of people who can be on a distributor’s frontline.
Residual income is secure.
There are limited levels of pay.
It requires time and hard work to build.
It is usually slower to build.
There are smaller checks initially.
In looking at the pros and cons, the founding executives decided that the unilevel plan would be the most likely to achieve their goals for SALT WAVE. However, they wanted to create a way that those who were just starting to build the business could earn money as well. That is why they added Fast Start and Power of 3 bonuses. In this way you can build a long-term income, but have bonuses to get you there along the way. They also added the Bonus Pools, so that your hard work and effort to get to higher ranks will be even more beneficial.
Compensation Plan Figure 1
There are 11 total possible ranks SALT WAVE CLUB MEMBER can reach. From Distributor to Super Director, each rank has certain requirements that must be met from month to month to maintain that rank. We have broken down these requirements for you below.
The first step in creating a SALT WAVE business is in the set up. The Distributor rank must purchase 65 Monthly PV to earn Unilevel Commission. This need to be PV from the Loyalty Rewards Program.
2. Bronze Agent:
A Distributor becomes a Bronze Agent need to enroll at least 5 new Distributor , and have an OV (collective team volume) of 325 PV.
3. Silver Agent:
A Bronze Agent becomes a Silver Agent need to enroll at least 5 new Bronz Agent , and have an OV (collective team volume) of 1,625 PV.
4. Gold Agent:
A Silver Agent becomes a Gold Agent need to enroll at least 5 new Silver Agent, and have an OV (collective team volume) of 8,125 PV.
4. Platinum Agent:
A Gold Agent becomes a Platinum Agent need to enroll at least 5 new Gold Agent.
6. Bronze Director:
A Platinum Agent becomes a Bronze Director need to enroll at least 5 new Platinum Agent.
7. Silver Director:
A Bronze Director becomes a Silver Director when they purchase at least 130 PV. They also have personally enrolled and in 2 Generation legs. (Another bonus? Once you become Silver Director will contact you soon.)
8. Gold Director:
A Silver Director becomes a Gold Director when they purchase at least 195 PV. They also have personally enrolled and in 3 Generation legs. (Another bonus? Once you become Silver Director will contact you soon.)
9. Platinum Director:
A Gold Director becomes a Platinum Director when they purchase at least 260 PV. They also have personally enrolled and in 4 Generation legs. (Another bonus? Once you become Platinum Director will contact you soon.)
10. Manage Director:
A Platinum Director becomes a Manager Director when they purchase at least 325 PV. They also have personally enrolled and in 5 Generation legs. (Another bonus? Once you become Manager Director will contact you soon.)
11. Super Director:
A Manager Director becomes a Super Director when they purchase at least 390 PV. They also have personally enrolled and in 6 Generation legs. (Another bonus? Once you become SuperDirector will contact you soon.)
Monthly Commission Peyment
Distributor: $ 0
Bronze Agent:$ 15
Silver Agent: $ 75
Gold Agent: $ 375
Platinum Agent: $ 1,875
Bronze Director: $ 9,375
Silver Director: $ 21,875
Gold Director: $ 37,500
Platinum Director: $ 56,250
Manager Director: $ 78,125
Super Director: $ 93,750
One Time Commission Bonus
Gold Agent: $ 150 in 30 day.
Platinum Agent: $ 300 in 60 day.
Bronze Director: $ 4,000 Vacation.
Silver Director: Car Bonus.
Gold Director: $ 5,000 + $ 4,000 Vacation.
Platinum Director: $ 10,000 + $ 4,000 Vacation.
Manager Director: $ 15,000 + $ 4,000 Vacation.
Super Director: $ 20,000 + $ 4,000 Vacation.