The Oeration of Direct Selling.ppt

Compensation System Up-line、Down-line、Generation、PV Retail profit Sales Reward Personal Sales Volume（PSV） Group Sales Volume（GSV） Cumulative or Non-cumulative reward Depth and width of down-lines Titles and Promotion Leader Bonus Compensation System-1 Consumer Type vs Business Type Principles of Compensation System： A、「Fairness」：Effort and Reward B、「Motivating」：Clear Target and Attractive Reward C、「Reachable」：Reasonable Goal D、「No Loophole」：Avoid Manipulation E、「No Free Lunch」：Earn the Reward Explanation of the Rewards PV (Point Value)：The unit for calculating the reward. Sometimes it is the exchange rate of local currency to US$. PV could be changed for promotion without changing the price of the product. Retail Profit：The difference between retail price and members price. Explanation of the Reward-1 Sales Reward：PSV (Personal Sales Volume) and GSV (Group SV) GSV: Include down-lines’PSV. The number of generations to be included is up to the company policy. The more GSV, the higher the reward %. So the up-line could get more reward with the help of down-lines’PSV. Ex. Percentage of Reward Explanation of the Reward-2 PSV of C is＄５,０００, the PSVs of his down-lines D1,D2,D3 are also＄５,０００ With only PSV of C, the reward will be ＄５,０００×２％＝＄１００ Including the PSVs of his down-lines, the GSV of C is ＄２０,０００, and the total reward is ＄２０,０００×４％＝＄８００ D1,D2,D3 will get their shares of reward ＄１００, the remaining $500 goes to C. Explanation of the Reward-3 Due to the contribution of his down-lines, the reward for C increases from ＄１００to＄５００. The increase is significant. If the PSV of C and D1 are both $60,000, PSV of the others are still $500, then GSV of C is $130,000. The total reward is $130,000×8％＝$10,400. The reward for D1 is $60,000×8％＝$4,800. The reward for D2, D3 is $100 each. The reward that C could get is $10,400-$4,800-$100-$100=$ 5,400. The contribution from his down-lines is only $600. Explanation of the Reward-4 Leader Commission：When