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MLM Commission Plan Fast Start Bonus (FSB) Explained
The MLM Commission Plan enroll 3 and YOURS if FREE Fast Start Bonus is an aggressive big money bonus type that is breakage based. Due to it being breakage based its true cost on average to company is about 25% of its face value.
Usually works best on a $400 to $1000 signup leadership package type scenario.
The way the MLM Compensation Plan Fast Start Bonus works is you calculate how much money a person who enrolls three with this package level of points would earn including all bonus types in your plan. You then calculate the total cost to join including signup fee and freight and taxes and subtract all bonuses earned from this number. What you are left with is a bonus amount that would allow you to make the claim enroll 3 yours is free!
The downside of this bonus is if initial leadership or corporate marketing team is not strong they can lose belief as members push with the obvious question.... Why do I not get a bonus on each signup instead of the huge bonus on the 3rd signup!
The answer is simple... The company would go broke if u paid the same size bonus out 1/3 at a time as it is a breakage based bonus.
Done on the third enrollment a $600 bonus would cost on average only $150 Total from the company due to breakage or $50 per signup. Done on each signup its cost would be $200 as advertised so you can see it would likely not be sustainable!
Should you wish to do a fairly large up front bonus one trick you can employ is to have the first order of a member not put points into your binary or matrix and have all PV go towards the fast start bonus. Melaleuca uses this approach.
I am not a fan of this as it tends to once again take too much money from the real workers and give it to the weak. Should you go with this concept my recommendation is at most a 50/50 split on PV between the fast start bonus and the matrix/ binary/ uni-level.
INS can certainly help to design an MLM compensation plan should you need help with yours. We have a generous Share in the risk plan on MLM commission plan design available to all our MLM Software clients.
Contact us today to learn more about INS MLM Software or our other MLM related services or request pricing by Clicking Here.
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