Some more advanced info, if you're new don't worry too much about this stuff!
In summary, here is why Xango's pay plan is very lucrative!
-----Original Message-----
From: Mark Wieser [mailto:mindset@redzebra.com]
Sent: Monday, February 23, 2004 4:31 PM
To: mashubi@homebizhearts.com
Subject: Xango's Dynamic Compression
Mashubi,
I've placed some resources up on my server to help "demystify" dynamic compression, one of the key benefits of our compensation plan in Xango.
Here are links to some information you can print out & distribute to prospects and/or to members of your team:
(right-click on a link to open a new browser window)
http://www.redzebra.com/xango/dynamiccompression.html
http://www.redzebra.com/xango/dynamiccompressionchart.html
http://www.redzebra.com/xango/dynamiccompressionflowchart.html
http://www.redzebra.com/xango/dynamiccompressionchart.xls
(this one requires that you have Microsoft Excel installed on your computer)
Dynamic Compression is not explained in the corporate materials around the compensation plan so it's a little tricky to explain to a new person, but oh so important to us old timers. So, here is an explanation of what makes this compensation plan so unbelievably lucrative:
It all has to do with the concept of BREAKAGE. XanGo DOES NOT HAVE BREAKAGE. You first need to understand that there is only one other company in the ENTIRE INDUSTRY that does not have breakage, and that's Morinda (Morinda's plan has 8 levels, XanGo has 9 levels).
Every other company has a "breakage account" that enables them to funnel big dollars back to the company when distributors don't pick up all their commissions. So, companies will say "We pay UP TO 40%, 50%, 60% etc. of every dollar back to the distributors", but after breakage that payout amount is far more like 30% or less. XanGo pays an ACTUAL 50% -- That means no exceptions, 50% goes to the distributors because they do not have a breakage account built into the Plan.
So here's how it works:
If you are a 1K and there are no other 1Ks underneath you in that leg, you pick up all commissions at 5% DOWN TO INFINITY.
If you are a 5K and there are no other 5Ks underneath you in that leg, you pick up all commissions at 5% DOWN TO INFINITY.
If you are a 20K and there are no other 20Ks underneath you in that leg, you pick up all commissions at 5% DOWN TO INFINITY.
If there is one 20K underneath you in that leg, you still pick up all commissions at 5% DOWN TO INFINITY.
Once there are two 20Ks in that leg you are blocked from the "DOWN TO INFINITY" part and pick up your 7 levels. (with two 20Ks below you, you're making big bucks!)
If you are a Premier and there is no Premier underneath you in that leg, you pick up all commissions at 5% DOWN TO INFINITY.
If there is one Premier underneath you in that leg, you still pick up all commissions at 2% DOWN TO INFINITY.
If there are two Premiers in that leg, you are blocked and pick up your 9 levels (and once again, that's because if you have two Premiers you are in high cotton!).
What does all this mean; well other than the obvious fact that you are going to earn more commissions than just the normal high commissions available with the 9 level payout, it means that when you bring in Premier-Quality, keep them high in your organization so going down 8 or 9 levels will mean tremendous income. Or, it might mean that you wouldn't necessarily "stack" Premier-Quality under Premier-Quality.
So, know that there is not a more lucrative payplan out there. And if some of your distributors in the future don't pick up all their commissions, guess what -- it rolls up to you through Dynamic Compression!
A couple of other key facts, that mean you are paid more: XanGo has NO BV (Bonus or Business Volume) or CV (Commissionable Volume). Most companies pay you your percentage based on some discounted value of wholesale called Bonus or Business Volume (BV) or Commissionable Volume (CV). XanGo pays you on 100% OF THE WHOLESALE VALUE OF THE PRODUCT. You don't lose anything! This is remarkably important.
Best,
Mark Wieser
(909) 864-6589
P.S. If you haven't already done so, be sure to listen to our team's fast start training audio located at:
http://www.mlmaudio.com/xgo/xangotraining1.ram
