What Is Network Marketing?
Building a Team for Profit
Immunotec's Compensation Plan
How to Earn an Income
Personal Customers
My Downline Distributor Business
Fast Start and Action Bonus
Rank Advancement and Residual Commissions
The Power of Geometric Progression
Infinity Bonuses
Do the Math!
Spanish Compensation Plan
Network marketing is a distribution system that uses an Independent Distributor network as an alternative to traditional distribution methods for products. For example, if you go to your local store and buy a bottle of shampoo, the price you pay includes research and development, the manufacturer's cost of production, the manufacturer's profit, the transportation to the wholesaler, the wholesaler's costs and profits, transportation to the retailer, the retailer's profits, the retailer's advertising, rent, warehousing, and more.
With network marketing, Independent Distributors buy products directly from the manufacturer and sell them directly to their customers, eliminating two levels of cost and markup. The customer gets a competitively priced product, with far better personal service than that found at most retailers. In fact, many of the top nutritional products on the market today are distributed through network marketing, allowing the makers of these products to invest more in leading-edge research and development.
In addition to being able to provide competitively priced products to their customers, Distributors are able to sponsor other Distributors into their business. What does this mean to you, and how can you make money? Let's start with a question: what is the biggest limiting factor to how much money someone can earn in most professions? Whether they are a doctor, lawyer or mechanic, the same principle applies. It's the number of hours that they can work in a day. Doctors are limited by the number of patients that they can see, lawyers by how many hours they can bill, and mechanics by how many cars they can fix.
In all of these cases the income-limiting factor is the amount of time that is available to each of them. No matter how hard they work, there are only so many hours in a day. Almost every worker is simply trading hours for dollars! The people in this world who become wealthy are business owners. Take for example the mechanic who has a team of three people. Alone, he or she can work on perhaps 10 cars a day, whereas with a team of employees, that mechanic could work on say 30 or 40 cars. The mechanic pays these employees a salary, but is still earning a profit on the work that the team does (the owner has leveraged the time of the employees).
Immunotec calls this profit an override - the profits generated by the sales of other Distributors working in your business. This is one part of the reason the network marketing model works so well. The other equally important reason is motivation. Employees don't have the same motivation as business owners. Owners have a much greater desire to see their business succeed than employees do.
One of the most important aspects of the network marketing business model is that every Distributor has the same earning potential. An Immunotec Distributorship is your own business, a business that has the same earning potential as any other Immunotec business. In fact, you benefit from the advantages of owning your own business without suffering the isolation that so many small business owners do. You receive advice and support from both your sponsor and Immunotec.
So how does all this boil down? How much money can you make with Immunotec and where does it come from? This is where we look at the Immunotec Compensation Plan. Compensation plans often look complicated and seem difficult to understand. Immunotec has developed a compensation structure that is designed to pay commissions in a fair and balanced way to all Immunotec Distributors. There is something in the plan for the Distributor who is simply trying to make a few hundred dollars a month and for the person who sees the opportunity to build a full-time replacement income.
The income that is earned through the Immunotec Compensation Plan is determined by: the number of Customers that you have, the amount of their purchases and your ability to build an organization of other Distributors who gather and support their own Customers. Immunotec pays commissions and bonuses based on products purchased, not for the recruiting of Distributors.
Understanding how you earn an income at Immunotec means understanding where the income streams come from. Income is generated from two places: your Customer base and the Customer base of the Distributors in your organization. It's as simple as that! There are bonuses that are paid on additional qualifications that we will explain here, but the basic principle of this business is creating a distribution network of Immunotec products. So let's analyze the compensation chart to better understand how you are paid on the business that you have begun.
We are going to look at two main sections. (1) How you are paid on your personal Customers, and (2) How you are paid on the sales of the other Distributors that you sponsor into the business.
Retail sales: You can earn an income from personal sales when you purchase products at your wholesale Distributor price and resell them to a retail customer at a marked-up retail price. In addition, with 800 points of Personal Volume purchased in any one commission period, Venture-qualified Distributors are eligible for a 5% Retail Volume Bonus (RVB) on all purchases over the monthly qualification requirement. The bonus increases to 10% at 1,500 points of Personal Volume and to 20% at 3,000 points of Personal Volume.
ImmunoDirect: This is a preferred customer program in which your customers can receive products at the maximum discount offered by Immunotec. Immunotec will take care of the shipping, billing, and customer service for all of your valued customers. If Customers subscribe to a monthly autoship, orders are discounted at 40%.
Immunotec pays you a 20% rebate (RCR) on all of the purchases made by your customers plus the difference in discount on orders placed by your customers.
Example: You enroll a customer who buys one box of Immunocal at a 25% discount ($74.25). You receive the difference between this price and your price ($59.40), which comes to $14.85, plus the 20% customer rebate of $11.88, which totals $26.73 on the one box of Immunocal. If your customer is on the autoship program, each month that the customer receives an order, your commission would be 20% of $59.40 or $11.88.
My Downline Distributor Business
You are eligible for commissions not just on your personal customers, but also on the business generated by other Distributors that you sponsor into the business. You are paid on this volume in one of two ways: either under the Fast Start system or under the "residual" system. On all new business (Distributors who are in their first month of their business), commissions are paid under the Fast Start system. After this initial Fast Start period, commissions are paid under the residual commission system.
The goal of network marketing is to build an organization that provides stable residual income from a network of consumers. The Fast Start Bonus is designed to provide additional cash flow while you create your residual commission base. Immunotec has put in place a series of bonuses that create earning potential for those just beginning to build their organizations. New and established Distributors alike can enjoy a performance bonus—paid monthly, based on new business generated.
You are paid Fast Start Bonuses for the first month that each of your personally sponsored Distributors is in the business. (Note: Fast Start commissions are not limited to your first month, but to the first month of each new Distributor you add to your organization.)
Every month, Immunotec rewards Distributors with the highest Action points with a percent of total sales.
JUST 30 ACTION POINTS A MONTH MAKES YOU ELIGIBLE FOR THE BONUS.
When you are one of the top three Action Point earners, you will earn the most bonus money!
Rank Advancement and Residual Commissions
After each new Distributor's first month (their Fast Start period) passes, commissions are paid under the "residual" commission system.
In addition to income generated through your customer base, Immunotec offers you a residual income program based on the sales made by Distributors that you sponsor into the business. This is where the business model of network marketing shows its strength. As we have seen, traditional income earners are limited by the number of hours that they can put into a business; however, as you sponsor others into the business, you are eligible for an override on the sales that they make. Immunotec pays Distributors up to 46% commissions on the wholesale price of every product sold (with the exception of Xtra Sharp, on which Immunotec pays up to 60%).
Earlier, we looked at the commissions generated by the customers that you bring into the business. When you begin to build an organization of others who do the same, you will be able to earn an override on the business that each of your downline Distributors generates. Immunotec sets no limit on the number of other Distributors that you can sponsor into the business. Distributors can have as many customers or other Distributors in their organization as they wish to sponsor. This is an important point as we continue to look at the Compensation Plan. You have the same earning potential as any other Immunotec Distributor!
The Power of Geometric Progression
Geometric progression is the engine that drives the network marketing business model. If you sponsor two Distributors into the business who each find two Distributors, who in turn each sponsor two, who each sponsor another two (2+4+8+16), you would have an organization of 30 Distributors (plus their customers) - not bad. Think of it in terms of hours—the limiting factor in your business. If you decided that you could commit 10 hours a week to your Immunotec business and asked for the same commitment from those you sponsored, you would now increase your working hours each week to 310! Just remember that in the real world, perfect geometric progression does not occur. Some people will recruit a lot of new Distributors, and some will never recruit anyone! This example is given solely to illustrate the powerful concept behind this unique business model.
The reason that an Immunotec business offers significant residual income potential (an annuity of sorts) is that the distribution network that you build belongs to you: it is your business. Immunotec is a company that strives for stability and for a system that provides unlimited possibility. The ability to leverage the work of those on your team adds up exponentially.
Feel free to "run the numbers" with as many Distributors as you feel is realistic for your personal goals!
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In addition to the Fast Start and residual commissions that Immunotec pays, Distributors can earn the Xtra Sharp bonus, the Gold and Diamond bonuses, and can also share in the Diamond and Executive Diamond pools.
We encourage you to go over these numbers and see how they fit into your income objectives. The more plugged in you are to the Compensation Plan, the healthier your bottom line. If you have any questions about the Compensation Plan and your earning potential, feel free to talk to your Sponsor. It's what they're there for!
