So, what does our comp plan do? I ’ll tell you what it does in three simple words: it creates millionaires…it creates millionaires. If you like that our plan creates millionaires, raise your hand. Our plan creates millionaires more predictably and with greater frequency than any other plan today. But the real power of our plan is in how it creates these millionaires.
Our plan creates millionaires because it makes income more accessible to each and every IPC, providing multiple ways for every IPC to generate $300 - $1,000 or more in monthly income. Becoming a millionaire in this industry only happens when you can help other people be successful and our plan puts checks in more people ’s hands than any other plan today.
The facts prove this out. Consider this, in comparing our plan to some of the top plans from competing companies, the percentage of our IPCs who earn checks is typically over four times greater than the percentage of distributors earning checks in other plans, that ’s a percentage increase of over 400%.
Our plan is balanced appropriately to deliver rewards at each phase of business development and we address financial needs from start-up to financial independence. Our goal isn ’t to give you only a few one-time enrollment bonuses; it’s to transform your life with real residual income. So, while we do have powerful, quick, income opportunities on the front-end of our plan, they are designed as stepping stones to the ultimate goal of wealth building income on the back-end of the plan.
Most companies today have chosen to ignore that the foundational income principle of network marketing is about building long-term income benefits associated with business ownership, not short-term income associated with common employment.
Plans from other companies promote how quickly someone can earn income in a month but rely on temporary income opportunities to accomplish this. And because all their commissions are concentrated up-front with new enrollments, there is not enough commissions left over to reward the ongoing consumption that drives residual income. These types of plans only provide temporary income…meaning they only offer an employee-level income opportunity. The reality is that temporary income solutions don ’t solve someone’s immediate or long-term financial need...at best, it can postpone it for a while…but the next month it’s back.
We have a powerful compensation plan and the next time someone comes to you with a front-end loaded or binary plan you need to educate them. You need to show them why their plan does not deliver real income and why our plan does. To educate them, show them eight key features of our plan that separate it from all other plans and guarantee maximum payout to our IPCs. Count these eight features with me on your hands.
First, 53%. Raise your hand and put up one finger. Our compensation plan pays 53% on qualified commissionable purchases, meaning we pay our IPCs more than Morinda earns. This is an indication of our commitment to you and to your leadership as well as an invitation to distributors outside of our company who are tired of working without reward to find their home here with us.
Now, raise your hand and put up two fingers. Second, a deep Unilevel. Our deep unilevel plan is why leader-after-leader earns more income with volume in our plan than in any other plan. The key to stable, long-term income is a deep organization that is supported by IPC leadership at all levels. Our eight-level Unilevel payout rewards deep building and has strategically placed the highest percentages where the income potential is the very greatest in the organization. Month-after-month, without fail, millions of dollars are paid back to our IPCs through this Unilevel plan…dollars that provide incredible lifestyle benefits, financial independence, and the true residual income that is the real reward of building a network marketing business.
Raise your hand and put up three fingers. The third feature that ensures maximum payout is the fact that our plan has no breakage. Breakage is when the company keeps a portion or all of the commissions due its distributors when a distributor doesn ’t qualify. Breakage allows a company to claim a high percentage payout, but actually pay much, much less. Binary plans are full of breakage and one of the games that binary companies like to use is to collect breakage throughout the year and then take a small portion of what they keep and use it to give away a few big bonuses. For example, let’s say that a company gives away a $5,000,000 bonus to a distributor...this would get everyone talking…wow, they would say, that comp plan is incredible…but what they don’t tell you is that the company has collected over ten times that amount in breakage from their distributors. They then use the commissions that they took, commissions taken not only from the top leaders, but mostly from the people trying to start their businesses…from the people just trying to get a check…they took those commissions all year and gave just a fraction of it back to their distributors to pay that bonus. So, that $5 million bonus doesn’t really represent success, it represents broken dreams, financial difficulties for families, damaged relationships, corrupted integrity, and heartache from the company’s own distributor base. You’d think that people would be hesitant to celebrate a bonus check funded by breakage…and they would be if the company was honest about its pay plan and told them how the bonus was really paid. In our plan, there is no breakage. We pay every commissionable dollar to our IPCs.
Raise your hand and put up four fingers. The fourth feature of our plan that ensures maximum payout is Dynamic Compression. Not only does our plan not have breakage, but our computers actively search the IPC organization to payout every piece of commission earned by our field. What this means is that IPCs earn residual income from levels way beyond the 8 levels in our Unilevel plan. In fact, to date, this feature of our plan has paid out over $XXXXXXXXX back in commissions to our IPCs.
Raise your hand and put up five fingers. The fifth feature of our plan is the transitional income opportunities it offers. These are quicker income opportunities on the front-end of our plan providing a path to wealth building for new and developing IPCs. Most people who begin their journey with us as IPCs are attracted by the vision they see of a better tomorrow for themselves because of our business opportunity…but their urgent financial needs of today can distract and discourage them from staying on the path that leads to the brighter future they want for themselves.
Our plan offers a step-by-step income approach to getting to those financial dreams. This step-by-step approach starts with access to five transitional income opportunities on the front-end of our plan
that lead to five wealth building opportunities on the back-end. The only objective of the five transitional income opportunities is to help an IPC get to the wealth building portion of our plan. Transitional income gives you the time to develop your IPCs into builders, to get them trained, and the time they need to find their own committed business partners and transition to wealth building.
I need to be clear on this point. The goal of our plan for all IPCs is wealth-building income. We have several transitional income opportunities whose sole purpose is to help more and more IPCs achieve this goal.
Raise your hands and put up six fingers. The sixth feature of our plan is our global bonus pools. The global bonus pools allow IPCs to participate in the success of the company from around the world, even markets where an IPC doesn ’t do business directly. Unlike other plans who cut-off access to portions of the pool when someone in the downline qualifies, the global bonus pools in our plan allow each qualifier to participate fully based on their own qualifications. No one is cut-off. This means it is a win-win for everyone in the organization and really boosts the income our plan pays to the IPC leader.
Raise your hands and put up seven fingers. The seventh feature of our plan is that leadership incentives are funded by the company, not by our comp plan. The majority of companies in this industry fund their leadership incentives from the commissions due their distributors; meaning, whatever it costs to support their car program, their special bonuses, or even incentive trips, is removed from the money to be paid to distributors through commissions before it is paid. This is another trick that other plans use that greatly reduces the commissions payout for a company to its distributors. Our plan does not do this. We fund these incentives out of the company ’s pocket, not yours.
Raise your hands and put up eight fingers. The eighth feature of our plan that ensures the most payout of any plan out there is our focus on real residual income. Our commitment to delivering a plan that provides true residual income keeps our plan pure and distinct from the front-end loaded plans so common today. Think about it, there are only so many ways you can split a dollar and if a plan focuses so much on paying money for enrollment with super expensive packs or other gimmicks, there simply isn ’t enough money after that for commissions to reward regular consumption which is the very thing that drives residual income.
These eight features of our plan mean that volume generated here will pay more than volume generated in any other plan.
As you leave this session today, you will be given this handout. This is a new tool that will be made available in all markets where permissible that talks about the eight features of our plan and the ten ways to earn income with us. Use this tool to educate others about the real income opportunity we offer.
“ It's the little details that are vital. Little things make big things happen.” John Wooden
As Cim referenced, many of the recent changes to our industry, in regards to the way in which independent distributors are compensated, incentivized and rewarded, has been to the detriment and loss of those same independent distributors. It is pretty amazing to me as I read and listen too many of our competitors in the industry, that even as they profess their commitment to the industry and their partners, their distributors, they are at the same time betraying that same commitment in the rewards and compensation they offer and teach.
It is time that together we take the message of real residual income to the world. Together we will be the force for change in the industry. We can be the voice of the millions of network marketers that are in the world, who do NOT understand the difference between a truly rewarding plan and a plan that only pretends to be so. Today we will take a few minutes to address some of the more common ways that companies take advantage of the lack of understanding of the new and uninformed distributors. As we look at these principles, we will also look at three separate companies and the way that they specifically take advantage of and exploit these principles to the short term benefit of the respective company and neither the short nor long term benefit of the distributor. We will focus on three of the points that Cim spoke about earlier, but this same conversation could and will happen with each and every point, as we continue to proclaim to the world our differences, and our commitment to the network marketing industry. I want to ensure that when I am done today, you will have NO doubts of the power, potential, and difference of our incredible plan. Now we are going to get into the details just a little bit, but don ’t worry, we will take it slow.
Mr. Gundotra was a vice presient of hardward design for Apple several years ago. He worked directly for the president and CEO of Apple - Steve Jobs. Mr Gundotra wrote: On a Sunday morning in 2008, he received a call during a religious service. He didn't answer, but Jobs left a message saying he had something "urgent to discuss." Gundotra returned his call almost immediately:
"Hey Steve — this is Vic," I said. "I'm sorry I didn't answer your call earlier. I was in religious services, and the caller ID said unknown, so I didn't pick up." Steve laughed. He said, "Vic, unless the Caller ID said 'GOD', you should never pick up during services". I laughed nervously. After all, while it was customary for Steve to call during the week upset about something, it was unusual for him to call me on Sunday and ask me to call his home. I wondered what was so important. "So Vic, we have an urgent issue, one that I need addressed right away. I've already assigned someone from my team to help you, and I hope you can fix this tomorrow," said Steve.
"I've been looking at the Google logo on the iPhone and I'm not happy with the icon. The second O in Google doesn't have the right yellow gradient. It's just wrong and I'm going to have Greg fix it tomorrow. Is that okay with you?" The CEO of Apple — the tech visionary who revolutionized personal computers, the way we listen to music and the way we think of mobile devices — was worried about the yellow in the second "O" in Google. Needless to say the problem was fixed, and Gundotra says it taught him a lesson on leadership and "passion and attention to detail." "It was a lesson I'll never forget,"
Steve Jobs was a master of his business. He not only worried about the direction of his business, but he worried about the details as small as the color of an O in a logo of a competitor! We need to be masters of the details of our business.
I am sure that many of you have had a regular 9-5 job (or know someone who does) but if you were to be employed in a manufacturing plant I am 100% confident that you would understand where and how you were paid. Understanding which actions are rewarded and which are not at your JOB is critical to a successful employment. Understating which actions you are paid for, where the money comes from and what you have to do to earn more of it is critical to your success in any endeavor. It is exactly the same with our compensation plan. Understanding the details, the features and benefits, and which actions to take in order to be paid, is critical to success.
I mean really, how can you hit a target or goal if you do not know where the target is in the first place?
Of the 8 features of our compensation plan , there are four which are specifically powerful.
These are: Dynamic Compression, No Breakage, our 53% payout, and the fact that Percentages and bonuses are paid for outside the core 53% in our plan. These four are those that dominate our competitors.
First, let ’s talk Percentages: As you know we declare to the world that we payout 53% on every commissionable dollar. This is a huge and powerful statement, but you may have experienced, in speaking with others, that in our industry there are companies that will make outlandish claims on the percentage payout of commissions back to their distributor base.
Literally, there are companies out there that claim to payout 75%-90% in commissions back to their distributor base. This should be insulting to your intelligence. Let ’s break this down. First of all, companies are in business to make a profit. If they pay out $.75 on every $1 collected, the remaining $.25 is not enough left to run an effective and successful company. There is not enough left over to pay for things like cost of production, rent, utilities, customer service salaries, legal services, licenses, public relations, meeting travel, conventions. The list goes on and on. Every company in your industry has basically the same expenses. It would be common sense that would tell us that if they are actually paying out 75% or more, then there is no way possible to stay in business long term. Most industry experts will tell you that around 50% commission payout is the most a company can pay out and still maintain profitable and in business. At Morinda Bioactives we proudly declare that we pay out 53% commissions to our distributors.
Interestingly enough, there is an opposite extreme to this strategy. Most companies won ’t say what their payout percentages are, almost as if they are afraid to talk about it, knowing that even mentioning it could jeopardize their business. So instead of disclosing what their percentage is, which usually ends up somewhere well below 50%, they attempt to overwhelm and confuse you with all of the other ‘stuff’ and ‘fluff’ in their marketing plan, in hopes that you’ll get the impression that they pay out a lot of commissions to their distributors. Now why on earth would they do that? Quite frankly they do this because of Morinda. They have had to do this because of us! They know they can’t or do not want to match our 53% payout. If they could, they would be loud and proud about their payout percentage. But their silence and secrecy speaks volumes about what truly is going on. Let me share with you a perfect example of what I am talking about.
Many of you may have heard of a company called Organo Gold. While I am going to use Organo Gold to illustrate my point, this same “Overwhelm and confuse people” approach to their compensation plan is truly pandemic in our industry. This not only represents Organo Gold, but also many many other companies.
As you can see here is a copy of the Organo Golds compensation Plan . it is this is a convoluted plan, nowhere does it indicate the amount or percentage of payout.
But if you begin to do the math, they actually profess to pay out 129%! Can you image that? I mean logic tells us that is impossible because they would go out of business in a few months if they actually did pay out all those percentages they profess. So not only is it confusing and convoluted, it is misleading and deceitful. This is a huge problem for our industry and something that we have led out on.
We profess, show and teach exactly how commissions are generated and how they are paid out. We can simply show the way it is calculated and where the money and commissions are going. This is the sign of a truly great plan, a plan that many have copied and tried to rip off but none have matched!
Now let ’s talk about bonuses – bonuses outside the plan, and how this affects the percentage payout of a plan. Many companies in the industry will offer additional incentives to their distributors in addition to regular commissions in their compensation plan to help enhance the lifestyle of its distributors.
These reward things such as Exotic getaways, car bonuses, watches, even promises to fly you to outer space. Let me ask you a question: in reality, who ends up paying for the trip or reward? The company, right? Hopefully I ’m not bursting your bubble, but most of the time in our competitors’ plans, it’s the distributors themselves who end up paying for it! I contend that when you take a closer look at the policy manual or compensation plan explanation of the respective company, you will discover that it’s the distributors themselves who end up paying for their own trip or award. Now those trips don’t sound so cool anymore do they? Let me explain how they do it. Remember, companies are in business to make a profit right? How do they find the extra money to afford to send people to outer space? Or drive exotic cars?
They pay for those expenses from the distributors commissions, not the percentage that the company keeps. Some companies will build in the cost of these benefits into their bonus pools. An example of this would be offering a 3% Bonus Pool with 2% of the pool paying cash bonuses and 1% funding an exotic Hawaiian retreat. Imagine that you are one of the hardworking distributors to earn that trip, who paid for it? The truth of the matter is, you did! A popular networking saying is that “A trip is something that you pay for, while a vacation is something that someone else pays for.” These companies position this as a vacation, but the reality is that it’s a trip that you pay for. Morinda Bioactives has never pulled money from the distributor’s pockets to fund any of our trips or additional incentives.
We leave the 53% alone and fund these trips out of the company ’s marketing dollars and revenue, not yours. The full 53% is paid out in COMISSIONS , not other rewards. 45% of our commissions are paid out in the form of Unilevel or Fast Start Bonus and 8% is paid out in 3 global bonus pools. All of our trips, retreats, car programs, meetings etc., are paid for OUTSIDE of the core 53% of the Morinda Bioactives Compensation plan. Let me share a real life example of this.
This is a company named 4life. They are a mid-sized company based out of Utah. I will use 4life as the example, but this also applies to most of the companies in the industry. Including these (show logos of competitors) but let ’s look at 4life.
Here is a copy of their compensation plan it is a fairly standard plan, in fact they don ’t do many things different than anyone else in the industry (except us!) but I want to read you something from their plan. This in in referece to their “Premier Pool” this is their equivalent to our Black Pearl Bonus, this is a bonus designed to reward leaders for their businesses growth l let me Quote from their plan “In addition, a portion of the Premier Pool and Platinum Pool is allocated to provide a special, annual Grand Adventure for exceptional Int . Diamonds, Gold Int. Diamonds and Platinum Int. Diamonds. Distributors qualifying as Int. Diamonds for at least ten months, as Gold Int. Diamonds for six months or Platinum Int. Diamonds for two months during the year will be rewarded with the annual Grand Adventure.” As you can clearly see, they are removing the additional incentives and promotions FROM THE PLAN, then they are paying out their supposed 50%...DO NOT BE FOOLED by these types of smoke and mirrors. I wish we had time to show you other examples, but time is short, we need to move on to other subjects.
Next topic…let ’s talk about Dynamic Compression. One of the great gotchas of the industry that you must be aware of is the concept of breakage. Breakage simply means that if someone is not qualified to get paid, their money breaks off and pays back directly to the company. In the case of many companies, and in particular companies with Binary Compensation Plans, they could not survive without breakage back up to the company. If you think about it, If every distributor in a Binary were really eligible for 10% payout through unlimited levels of their down line teams weak leg volume, common sense tells you that after a couple of levels of pay, the company quickly goes out of business. Binary companies cannot stay in business without Breakage. Other companies find themselves in a position where they claim, once again, 75%-90% payout, and likewise cannot survive without significant breakage back to the company. Morinda Bioactives pioneered a concept called dynamic compression which simply means that in our comp plan, we don ’t have breakage. Where breakage occurs in other companies, we continue to pay out commissions until we achieve full payout. Dynamic compression absolutely benefits you, the networker. It benefits everyone that you bring into your team. Here’s a quick statistic to illustrate this point. In full disclosure, on our income disclosure statement, Morinda pays commission checks to about 40% of its distributors. This means that 40% of all distrbutors working with us receive a commission check on a monthly basis. This is a HUGE statistic and a powerful indicator and clue as to the way that we have created and built our foundation and compensation plan. Now let compare this to a company which for a few years was growing and expanding, but recently has taken a real nosedive. I believe that the marketplace is large enough for everyone to be successful. I believe in abundance, so I do not want these companies to fail or falter, that said, I want to share with you another example of this company that is pretty well known.
This is a company with a Binary compensation plan (Show Logo) I believe that they were and are doomed from the start, the very nature of their plan, their very foundation puts them at risk and creates instability in their organization. Let ’s look at their own published Income disclosures.
Here it is, if you were to take the time to read it, it states that only 15% of their total distributor base are Active, then it says that only 9% of those 15% receive a check each month. Any check, not a good check, just ANY check! Now why would they say it this way?, this is another distraction. Why? Breakage! Their company would go bankrupt without over 90% of their distributors getting cut out because of breakage. They must have a very low number of people receiving commissions. This is a huge problem for companies that use a binary compensation plan. Because they have huge amounts of breakage, because they NEED huge amounts of breakage, a few of the very top leaders earn all the income and those in the middle (in Monavies report 85% of them MAKE NO CHECK AT ALL and of those that DO make a check it is pretty watered down) this is why I state that they were doomed from the start. Sometimes a binary plan can make for a quick income story, but unless you were the first person into the plan, you are fighting an uphill battle the entire way. The fall out rate, retention and success of people in these types of programs are indicative of their tendency to fail
Morindas plan is different; our plan provides the same reward and promises to those that have been with us for 10 years as someone that has been with us for 10 days. There Is NO breakage in the plan, there are no smoke and mirrors. These things are just not present in our plan. As a matter of fact if you look at our plan, it demonstrates the power and longevity of the way we have approached the business. I wish that I had more time to share with you additional examples of the incredible plan that we are able to participate in. It is our responsibility to educate and inform everyone of the advantage that we have at Morinda Bioactives. When we combine the Bioactive Industry, our incredible products and our fantastic compensation plan, there is NO better opportunity in the world than Morinda Bioactives. I have spent the last 15 min sharing with you some real details in regards to our plan. It is important that we do not forget that real power in our plan, the real power is to be found in the lives which are transformed through this program. As I end, I want to share with you a story. A story that touched my heart and does an incredible job of illustrating the power of our business to impact a life
The Morinda Business impacted Cynthias life, and with can and will impact your life! I invite you to share the power of our plan, our business and our opportunity with the world. Have a wonderful afternoon!
Our plan createsMillionaireshttp://mymorinda.com/1757437
10 way to earn income with MorindaTransitional Income1 Customer Autoship2 Customer Retail Profit3 Personal Rebate4 IPC Fast Start5 G&D Bonus
10 way to earn income with MorindaTransitional Income Wealth Building Income Unlimited Matching Bonus1 Customer Autoship 62 Customer Retail Profit IPC Unilevel 73 Personal Rebate Dynamic Compression Bonus 84 IPC Fast Start Infinity Bonus 95 G&D Bonus Black Pearl Bonus 10
10 way to earn income with MorindaTransitional Income Wealth Building Income Unlimited Matching Bonus1 Customer Autoship 62 Customer Retail Profit IPC Unilevel 7 Goal for all IPCs3 Personal Rebate Dynamic Compression Bonus 84 IPC Fast Start Infinity Bonus 95 G&D Bonus Black Pearl Bonus 10
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CommissionsVisalus: Morinda:•Team Commissions •Unilevel•3 Active Legs •3 Title Qualified Leaders•125 PQV •120 QPV•60% Limit for any given Leg •N/A•Level 1 5% •Level 1 1%•Level 2 5% •Level 2 5%•Level 3 5% •Level 3 5%•Level 4 5% •Level 4 6%•Level 5 5% •Level 5 6%•Level 6 5% •Level 6 7%•Level 7 5% •Level 7 7%•Level 8 5% •Level 8 8%•2% - 4% Leadership Depth Bonus •Dynamic Compression
Global BonusesVisalus: Morinda:•Global Bonuses •Global Bonuses•2% Rising Star Weekly Enrollers •2% G&D BonusPool •3% Infinity Bonus•2% Leadership Pool •3% Black Pearl Shared Success Bonus
Title BonusesVisalus:•Title Bonus Morinda:•Ambassador •Title Bonus Paid over 12 Months/18 Months •Marquesasto Qualify Paid over 12 Months•3 Star AMB •Nuka Hiva Paid over 12 Months/18 Monthsto Qualify Paid over 12 Months•5 Star AMB •Bora Bora Paid over 18 Months/24 Months Paid over 12 Monthsto Qualify•Royal AMB Paid over 24 Months/36 Monthsto Qualify•Crown AMB Paid over 24 Months/36 Monthsto Qualify
Car BonusVisalus: Morinda:•Car Bonus •Car Bonus•Yes •Yes