John SanpietroCertified Professional Development Coach
Stamping Is My Business!
Recently, one of my clients e-mailed me in some distress. She told me she had read that SU! was a company with “a compensation system that rewards recruitment more than actual sales of products to persons outside the network of participants. So significant income is unlikely without recruitment of a large downline.”
She asked me if it was true.
I replied that it was, but why did she think that was a bad thing?
Any direct sales company worth anything is going to reward recruiting over sales. This is actually a good thing.
Because there’s a limit to how much you can sell. There’s NO limit to how large you can grow your downline.
You’re limited in how much you can sell because you’re time is finite. No matter how hard you work, you only have a certain amount of time to do the work in. Also, when you stop working, you stop selling… AND you stop making money.
By recruiting a downline, you open yourself up to limitless potential. Although you’re capped on your depth, the fact that there’s no limit on width means there’s no limit on compensation. And, even when you’re not working, your downline continue to work. That means, you continue to make money.
It’s the difference between actively generating your income vs. passively generating it. Trust me, the more passive income you generate, the better!
Think about this… if you sold $100,000 in product, your commission would be around $40,000. Plus, you would probably get a nice check from SU. Say, $15,000. So, your gross income would be $55,000. BUT, subtract from that all of the product you have to buy to demo in order to sell that much product, as well as the expense of doing the number of events you would have to do to hit that number.
Your net taxable income is probably around $40,000. Which means, you’re only keeping around $30,000 of it.
That’s a LOT of work for $30,000 in your pocket.
Now, compare that to the Demo who doesn’t sell anywhere near as much, but has a large downline. I can tell you with 100% assuredness that there are people who are selling a fraction of the amount in the above example, but are netting three or four times as much income.
Why? Downline commission!!
So, does this mean you shouldn’t sell product? Of course not.
What is does mean, though, is that you SHOULD recruit. And recruit often. THAT is the key to a long-term, sustainable stamping business.
Certified Business Coach
Stamping Is My Business!