010312_Understanding.. - Essential Oil Business

Report
UNDERSTANDING THE doTERRA
COMPENSATION PLAN AND
OPPORTUNITY
Marty Harger – 1/3/12
Understanding Compensation
Compensation Plan Review
The Power of the LRP Program
Retail Profits
Preferred Member
Fast Start Bonus
Power of Three Team Bonus
Unilevel Commission
Leadership Bonus Pools
Qualification Requirements
How to Get to PREMIER in 90 days
How to Get to SILVER in 90 days
The Power of the
Loyalty Rewards Program
•Free Product!
•Completely Optional
•Flexible dates
•Product of the Month Club-- $125pv before the 15th!
•Most people choose to take advantage of it
•$100 pv monthly LRP order also qualifies you for
commissions
“Begin With The End in Mind”
• What do you want to achieve with your
dōTERRA business in 2012?
– What Rank?
• Director? Executive? Elite? Premier? Silver? Gold?
Platinum? Diamond? Blue Diamond?
• What monthly amount of additional income
would CHANGE YOUR WORLD?
Earn via
Retail Sales:
1+2+3+4+5
1
• 25% of the “Wholesale” Point Value of
what anyone buys from you
• On your Website
• In person (that you pre-purchase
at wholesale)
• From an order taken on paper &
faxed to dōTERRA
• When they call dōTERRA and
place an order referencing YOUR
IPC number
Note: You are not paid any other bonuses or commission on these sales,
other than the 25%. Checks for Retail Sales Commission are paid out on
the 15th of the following month.
Earn via 1 +
Preferred Member:
2 +3+4+5
2
• 5 - 20% of the “Wholesale Point Value”
of what everyone buys from you
once they sign up:
• On your Website
• In person (that you pre-purchase
at wholesale)
• From an order taken on paper &
faxed to dōTERRA
• When they call dōTERRA and
place an order referencing YOUR
IPC number
Note: You are not paid any other bonuses or commission on these sales,
other than the 25%. Checks for Retail Sales Commission are paid out on
the 15th of the following month.
Earn via 1 + 2 +
3+4+5
3
Fast Start Bonus:
As much as 20% of what an IPC
buys from you in their first 30 days
Note: All commission and bonuses are paid on the Wholesale Point Value
of items purchased
Fast Start Bonus (Weekly)
 To get Fast Start Bonus
◦ You need to be on 100 PV Loyalty Rewards
BEFORE you sign someone up.
◦ Paid on the PV (Point Value) not the exact
dollar amount
 NOTE: Starter Kits and Diffuser are less than dollar
value PV
 Fast Start Bonus instead of Unilevel Bonus
for first 30 days you enroll someone
 Checks paid weekly
◦ Includes orders placed through midnight
Sunday night
Loyalty Rewards Program
(Monthly Event)
 This is the KEY to your maximum financial benefit at dōTERRA,
allowing you to earn:
◦
◦
◦
◦
Power of Three Bonus
Fast Start Bonus
Automatically qualifies your Unilevel payout
FREE product credits for everything you buy on Loyalty Rewards.
 Minimum Monthly Requirement:
◦ You need to make at least ONE Loyalty Rewards order of 100PV or
more per month to qualify for bonuses.
◦ Important: Make sure that your PV is always over 100 not just your
dollar amount
 Bonus Payments
◦ Power of 3 or Unilevel Bonus are paid in the month following the
shipment of their first Loyalty Rewards order.
◦ Checks usually are processed on the 15th of the following month. This
check includes Power of Three Bonus for your group and the individual
Unilevel Bonus.
Note: If you
make an order
during the
month that is
NOT on your
Autoship,
you will not
get free product
credits for it.
Note: If you stop Loyalty Rewards, you lose any unused product credits earned.
POWER OF 3 TEAM BONUS
Consistent, monthly income
opportunity
Earn via 1 + 2 + 3 +
4+5
4
Power of 3 Bonus:
Additional Monthly Bonus for
maintaining sales + Loyalty Rewards
levels in your team
Note: All commission and bonuses are paid on the Wholesale Point Value
of items purchased
Power of Three Bonus (Monthly)
 Qualification:
◦ 600 PV between You and
your front line to qualify.
 Good idea to have extra PCs
and IPCs here)
 Minimum: Must have 3, 100150 PV Loyalty Rewards plus
your own Loyalty Rewards that
go out in a month in order to
receive this
Note: Make sure you structure 4 (IPCs on
Loyalty Rewards )x 4 or 5x5 if you
want to make sure you get this bonus each
month.
◦ Must be duplicated amongst
the rest of your front line,
Level 2 team etc to get the
maximum bonuses.
◦ Loyalty Rewards is KEY here!
POWER OF THREE TEAM $$$
You’ve probably seen this before…
$50 Monthly
150 Points Each
Average
600 PV between this team
14
POWER OF THREE
$250
Monthly
600 PV between
each team
15
POWER OF THREE
$1500
Monthly
600 PV between
each team
16
Take a Look at the BIG Picture
17
What if people only purchase
the MINIMUM of 100 PV on
their LRP Order?
To make $250 bonus, it
takes
30 IPCs @ 100PV vs 12 IPCs @150PV
on LRP on your Levels 1 & 2
18
WHAT IT TAKES TO EARN POWER OF 3 doTERRA TEAM BONUS
If everyone on your team buys 100PV per month you need 155 people to get to $1500 bonus!
You
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$250
$1500
If everyone on your team buys 150PV per month you need 39 people to get to $1500 bonus!
You
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B
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B
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Created by Marty Harger #2433 – 801-712-5406
$250
$1500
Think about it . Share this with your team!
dōTERRA $1,500 per month POWER OF 3 Bonus Builder
Fill in the names of You and YOUR team members!
START FILLING IT IN!
Created by IPC Marty Harger 801-7125406
Unilevel Commission and
Leadership Bonus Pools
PAID MONTHLY TO THE LEVEL
EARNED
Earn via 1 + 2 + 3 + 4 +
Unilevel Bonus:
5
5
Your Residual income from dōTERRA
Note: All commission and bonuses are paid on the Wholesale Point Value
of items purchased
Unilevel Bonus (Monthly)
Your Residual dōTERRA
Income!
Designed to encourage you to
help others succeed.
Calculated with “Dynamic Compression” –
requires minimum monthly purchase for
payout
You can be paid up to seven levels down, and
up to 7% of sales for that month.
Dynamic Compression
Level
You
100 PV
1st150 PV
st
1 45 PV
nd
2 200 PV
X 0 PV
rd
3 75 PV
35
PV
rd
3
Unilevel Bonus Calculator
Unilevel Bonus Calculator
3 Number of new consultants per person
$100 Monthly sales per consultant
50% Average retention rate
You
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6
Level 7
Consultants
1
1.5
4.5
13.5
40.5
121.5
364.5
1093.5
Volume
$100
$150
$450
$1,350
$4,050
$12,150
$36,450
$109,350
Unilevel
Percent
2%
3%
5%
5%
6%
6%
7%
Monthly
Bonus
$3
$14
$68
$203
$729
$2,187
$7,655
$10,857
Annualized
Bonus
$36
$162
$810
$2,430
$8,748
$26,244
$91,854
$130,284 Unilevel bonus
Unilevel Bonus Calculator
3 Number of new consultants per person
$100 Monthly sales per consultant
65% Average retention rate
You
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6
Level 7
Consultants
1
1.95
5.85
17.55
52.65
157.95
473.85
1421.55
Volume
$100
$195
$585
$1,755
$5,265
$15,795
$47,385
$142,155
Unilevel
Percent
2%
3%
5%
5%
6%
6%
7%
Monthly
Bonus
$4
$18
$88
$263
$948
$2,843
$9,951
$14,114
Annualized
Bonus
$47
$211
$1,053
$3,159
$11,372
$34,117
$119,410
$169,369 Unilevel bonus
Unilevel Bonus Calculator
4 Number of new consultants per person
$100 Monthly sales per consultant
50% Average retention rate
You
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6
Level 7
Consultants
1
2
8
32
128
512
2048
8192
Volume
$100
$200
$800
$3,200
$12,800
$51,200
$204,800
$819,200
Unilevel
Percent
2%
3%
5%
5%
6%
6%
7%
Monthly
Bonus
$4
$24
$160
$640
$3,072
$12,288
$57,344
$73,532
Annualized
Bonus
$48
$288
$1,920
$7,680
$36,864
$147,456
$688,128
$882,384 Unilevel bonus
Unilevel Bonus Calculator
4 Number of new consultants per person
$100 Monthly sales per consultant
65% Average retention rate
You
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6
Level 7
Consultants
1
2.6
10.4
41.6
166.4
665.6
2662.4
10649.6
Volume
$100
$260
$1,040
$4,160
$16,640
$66,560
$266,240
$1,064,960
Unilevel
Percent
2%
3%
5%
5%
6%
6%
7%
Monthly
Bonus
$5
$31
$208
$832
$3,994
$15,974
$74,547
$95,592
Annualized
Bonus
$62
$374
$2,496
$9,984
$47,923
$191,693
$894,566
$1,147,099 Unilevel bonus
Bonus Pools
What is a “Qualifying Leg”?
• A qualifying leg is someone whose
Enrollment you hold…you are the Enroller.
• You can use ONE Enrollee per LEG to qualify
for Rank Advancement.
If you are the Enroller and they qualify…you can use
them for Rank Advancement..in this case, to GOLD.
They do NOT have to only be on your front line.
You
PREMIER
A
B
2
C
A
3
PREMIER
C
A
B
C
I
I
I
I
I
I
I
I
I
II
II
II
II
II
II
PREMIER
II
II
III
III
III
III
III
III
III
III
III
Another scenarios …
You
PREMIER
A
B
2
C
A
PREMIER
PREMIER
C
A
B
C
I
I
I
I
I
I
I
I
I
II
II
II
II
II
II
II
II
II
III
III
III
III
III
III
III
III
III
As long as YOU are the Enroller in each of
these cases – you can advance!
SO KEEP ENROLLING!!!
What Do You Want To Achieve?
If you become very good at what you do, there is nothing that can stop you
from getting paid more and promoted faster. —Dan Kennedy
The market pays excellent rewards for excellent performance.
It pays average rewards for average performance;
and below-average rewards, failure, and frustration for below-average
performance.
Your goal should be to become an expert in your chosen field by learning
every single detail about how to do your work better and better. Set a goal
for yourself to become the very best in your business or profession. One small
detail, insight, or idea can be the turning point in your career. Never stop
looking for it.
To achieve PREMIER…
•
Must have 5000PV in OV (Overall Volume)
including 2 legs of Executive that you have
personally enrolled
YOU
2000 OV
EXECUTIVE
2000 OV
EXECUTIVE
Other
Volume
Other
Volume
Other
Volume
Minimum volume of 1000 PV here
Another way to achieve PREMIER…
•
Must have 5000PV in OV (Overall Volume)
including 2 legs of Executive that you have
personally enrolled
YOU
2500+ OV
EXECUTIVE
2500+ OV
EXECUTIVE
Or you could have 2 legs of 2500
each… but remember that you will
need 3 legs to advance to Silver
To achieve SILVER…
• Must have 9000 or more in OV (Overall
Volume) including 3 legs of Elite where you
personally hold the Enrollment
YOU
3000 OV
ELITE
3000 OV
ELITE
3000 OV
ELITE
To achieve GOLD…
• Must have 15,000 or more in OV (Overall
Volume) including 3 legs of Premier where
you personally hold the Enrollment
YOU
2
3
1
2000
OV
EXEC
UTIVE
2000
OV
EXEC
UTIVE
2000
OV
EXEC
UTIVE
Other Other Other
Volum Volum Volum
e
e
e
2000
OV
EXEC
UTIVE
Other Other Other
Volum Volum Volum
e
e
e
2000
OV
EXEC
UTIVE
2000
OV
EXEC
UTIVE
Other Other Other
Volum Volum Volum
e
e
e
To achieve PLATINUM…
• Must have 27,000 or more in OV (Overall
Volume) including 3 legs of Silver where
you personally hold the Enrollment
YOU
1
3000
OV
ELITE
3000
OV
ELITE
2
3000
OV
ELITE
3000
OV
ELITE
3000
OV
ELITE
3
3000
OV
ELITE
3000
OV
ELITE
3000
OV
ELITE
3000
OV
ELITE
To achieve DIAMOND…
• Must have 36,000 or more in OV (Overall
Volume) including 4 legs of Silver where
you personally hold the Enrollment
1
3000
OV
ELIT
E
3000
OV
ELIT
E
2
3000
OV
ELIT
E
3000
OV
ELIT
E
3000
OV
ELIT
E
3
3000
OV
ELIT
E
3000
OV
ELIT
E
3000
OV
ELIT
E
4
3000
OV
ELIT
E
3000
OV
ELIT
E
3000
OV
ELIT
E
3000
OV
ELIT
E
Question & Answer Time
What are some of your questions?
GETTING TO PREMIER
I want to make $500 - $1,000 per
month with my dōTERRA business
by April 1st
How do I do that?
43
10 weeks to earn $500 - $1000/month
• 2 PRIMARY WAYS TO EARN INCOME
• Fast Start Bonus
– 20% of PV of those YOU enroll
– 10% of PV of those enrolled by you, when they enroll
someone
– 5% of PV of those who they enroll
• Power of 3 Team Bonus
– $50 from 600PV with you & your front line
– $250 from 600PV with your front line & their from line
– $1500 from 600PV from your 3rd line
44
Set a SMART GOAL for yourself
•
•
•
•
•
S = Specific (what? By whom? where?)
M = Measureable (how much per month?)
A = Attainable (is this realistic?)
R = Relevant (does it fit in long term goals?)
T = Time-Based (by when?)
45
FAST START BONUS
OPPORTUNITY
46
Set a MONTHLY Goal (Fast Start only)
When YOU are the only enroller
MONTHLY GOAL
PV Value
20%
What You’d Earn
$500
2500 x
.20
= $500 Fast Start
How many total monthly enrollments create 2500 PV
value?
Every Oil Kit = 1000 PV
Premium Kit = 400 PV
3 Kits
Family Physician = 110 PV
23 Kits
7 Kits
1000 x 3 =
110 x 23 =
400 x 7 =
3000PV
-OR-
2800PV
2530PV
-OR-
47
Now Break it Down to WEEKLY
If only YOU enroll…how you’d earn
INCOME GOAL
PV Value
20%
What You’d Earn
$125
625 x
.20
= $125 Fast Start
How many total weekly enrollments create 625 PV
value?
Every Oil Kit = 1000 PV
1 Kits
Premium Kit = 400 PV
2 Kits
6 Kits
1000 x 1 =
1000 PV
Family Physician = 110 PV
400 x 2 = 800
-OR-
PV
110 x 6 = 660
-OR-
PV
48
EXAMPLE: Weekly Income
When You GROW BY DUPLICATING
with your downline vs doing it all alone
WE GAIN WHEN WE HELP OTHERS!
INCOME
GOALS
Fast Start
Bonus earned
by YOU
You
400 PV x .20
Your Level 1’s
Your Level 2’s
Fast Start from
Your Level 1’s
(10% of PV)
Fast Start from
Your Level 2’s
(5% of PV)
Total Earned
$80
600 PV x .10
$60
500 PV x .05
WEEKLY
INCOME
MONTHLY
INCOME x 4
$25
$165 per
week!
$660 per
month!
See how you EXCEED your $500 monthly goal with
the help of other business builders on your team?
49
What Happens to FAST START if
NOBODY new enrolls?
NO FAST START BONUS THAT WEEK
So now you need to play “catch up” the next week IF
you are only relying on the FAST START income.
But there are other ways to
earn as well!!
Let’s talk about
POWER OF 3 TEAM BONUS
50
POWER OF 3 TEAM BONUS
OPPORTUNITY
51
Ramping Up to $500 and BEYOND!
Spend $150
Make $ 900
$1000
1-Month
PROFIT = $725!
$900
Unilevel - $100
$800
Power of 3 - $50
Spend $150
Make $ 575
$700
Earn $150 FS @5%
from Level 2’S
$600
Earn $75 FS @5%
from Level 2’S
Spend $150
Make $300
Earn $200 FS @10%
from your Level 1’s
efforts (2000PV)
Earn $300 FS
@10% from your
Level 1’s efforts
(3000 PV)
Earn $100 FS @10%
from Level 1’S
You earn $300 in
Fast Start Bonuses
from 1500PV
YOUR new
Enrollments(20%)
You earn $300 in
Fast Start Bonuses
from 1500PV YOUR
new Enrollments
(20%)
$500
$400
$300
$200
$100
You earn $200 in Fast
Start Bonuses from
1000PV new
Enrollments (20%)
$900
Income!
Add YOUR efforts
& Fast Start Payout
+ Fast Start from
duplicating your
efforts with your
Level 1’s and Level
2’s over the next
few months. Then
add Power of 3
payout and Unilevel
Payout…LOOK AT
THE RESULTS!
52
Making that $500 - $1000/month
• You can do it with FAST START
– Combination of YOU enrolling and
– Duplicating your effort by those you enrolled
• You can do it with POWER OF 3
– Educate as to why 150PV benefits everyone
• Health + Product + Financially! (LLV + oils + products)
• You can do it with a COMBINATION
…and we haven’t even discussed UNILEVEL yet!
53
THE PATH TO SILVER!
I want to make $1500 - $3000 per
month with my dōTERRA business
by April 1st
How do I do that if I now make $500?
Explained assuming you have a team
underway
54
Are You Walking Your Talk?
• Do you spend 150PV a month?
– Do you ask your front line leaders to do the same?
• Do you enroll new people regularly?
– Do you ask your front line leaders to do the same?
• Are YOUR monthly efforts focused on duplication
LEARN…..BUILD….LEAD?
• Have you helped your TEAM to see the vision of what
they can create by setting goals specifically for
them…and are you helping THEM to achieve it during
this same timeframe?
• Are you the leader YOU would like to follow?
55
10 weeks to earn $1500-$3000/month
• 4 WAYS TO EARN INCOME---Where do you want to focus?
• Often requires some upfront investment …what % of your business
income are YOU reinvesting to create greater momentum & wealth?
• Fast Start Bonus
– 20% of PV of those YOU enroll—KEEP ENROLLING!!!
– 10% of PV of those enrolled by you, when they enroll someone
– 5% of PV of those who they enroll
• Power of 3 Team Bonus
– $250 or $1500 ---focus on transitioning users to LRP? Add new people on LRP? Incentives you
create?
• Unilevel Bonus
–
–
–
Mirrors your Power of 3 typically
VOLUME of sales drives increase---incentives dōTERRA offers & YOU create
Knowledge of products drives usage….how are you helping to educate your team on oils?
• Leadership Performance Pool
–
Current payout = Silver = $150/ Gold = $750
56
Set a SMART GOAL for yourself
•
•
•
•
•
S = Specific (what? By whom? where?)
M = Measureable (how much per month?)
A = Attainable (is this realistic?)
R = Relevant (does it fit in long term goals?)
T = Time-Based (by when?)
57
MONTHLY Goal (Fast Start only)
MONTHLY GOAL
PV Value
20%
What You’d Earn
$500
1150 x
.20
= $225 from YOU
1500 x
.10
= $150 from Level 1
2500 x
.05
= $125 from Level 2
ASSUMES YOU & YOUR FIRST 2
LEVELS ARE ACTIVELY ENROLLING
EACH MONTH
58
POWER OF 3 TEAM BONUS
Track it, Post it, FILL IT IN!
As YOU enroll – you control placement so you can place
new IPCs where you need them to build your Power of 3.
dōTERRA $1,500 per month POWER OF 3 Bonus Builder
59
10 Weeks to
$1500 & WAY BEYOND!
$1200
Unilevel
Silver- $150
$2000
$750
income
$300 Unilevel
THIS IS THE
MOST
IMPORTANT
GOAL….why?
Consistent
buying =
consistent
income for
ALL!
$250 Unilevel
$250 Power of 3
$1500 Power of 3
$250 Power of
3
$500 Fast Start
$500 Fast Start
$1500
$1000
$1150
income
$500
$250 Fast Start
Bonus
$3350
income
This is all tied to
your efforts to:
ENROLL
DUPLICATE
Within your team.
What would happen
if EVERY ONE of
your leaders had a
big goal for the next
90 days and you
connected with
them daily to reach
it?
IS IT
POSSIBLE?
YES!!!
60
YOU CAN DO IT!!!
I believe in you!
All your upline partners believe in you!
dōTERRA believes in you!
Do you believe?
61
Question & Answer Time
What are some of your questions?

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