Sunday, March 16, 2008

Does your company pay 10% or more?

For "just customer" repeat orders? Or for preferred-type customers?

Anything but one time retail orders, I mean, and not counting any distributor orders.

If yours does, comment at the end of this post. Tell 1) the name of the company and 2) the range of percent OFF THE TOP they pay - off what the regular customer pays for the order.

NOTE: If your company uses a points system, where the points are what you are paid on, but the points are less than what the customers pays for the product, figure out the percent based on what the customer pays in dollars, so we are comparing apples to apples.

E.g. if you are paid say 10% on 100 points, but the customer pays $130, figure out how much you are paid on the $130. Tell that. OK?

People want to know what companies pay at least 10% for regular type customer orders. Based on what the customers pay in the language we all understand: dollars.

Don't count special one time retail sales. They're usually higher priced, but they do not encourage 'repeat' (residual) income like auto-ship or preferred customer programs do. Because there's no price advantage to the customer. And no, signing them up as a rep doesn't count. Defeats the whole purpose of 'just customers.'

Remember most mlm companies are totally distributor-driven, which is why most of them don't pay for just customers. It's changing, slowly but surely.

So whose company pays 10% or more for just customer orders? And what types of product do you market? (Skip technical names - use nutritional, weight loss, legal, skin care, personal care, household, etc.)

14 comments:

Judy Kelly said...

Don't think you're particularly fond of Mannatech but we do pay 20% on "Member" orders. A member is a customer who receives a small 5% on all orders and 10% on automatic orders so they are not retail customers. No ssn is asked for so they cannot sell.
Judy Kelly
mejjohn@aol.com

Anonymous said...

Hi Kim
My company,Max International,pays 22% on Customers...in a weekly check as they order and re order.
$16.50 on each $66 box which is a 28 day supply and $34 of the $66 goes into the pay leg to earn another 10% on that $34 IF there are 2 associates sponsored...one on each side...
A possible 25% when 2 associates are sponsored
But,no matter, that 22% is paid if NO associates are sponsored.
Max LIKES for Preferred Customers to be on Auto ship but it is not necessary.
$66 is Associate cost.
$85 is Retail if someone just buys the product to RETAIL.
MaxGXL, the company, has about 25,000 associates and almost 8,ooo Preferred customers and is 1 year old.
There is no cost to become a PC and no monthly order they must meet to get that price.
The company likes customers and they are not sent material to try to get them to become associates.
Some do as they think of people they want to tell about it, etc. The cost to become an associate is $49.
I have mostly customers and am very comfortable with that.
I love doing this the way I learned with you and from your book,"If My Product's So Great, Why Cant I Sell It?"
I am so very grateful for your school in 2008 where I learned to tell my story in a script developed in class which I use every time.."I market a product for someone who used to be a high-energy person and lost it like what happened to me etc.
Always ending with the
"Do you know anyone who might like to know about a product like that?"
Many thanks, Kim,for all I have learned and am continuing to learn from you.
100 customers in 100 days is realistic to do with your training and practice.
I know because I am doing it.
Just be a real person and tell YOUR story.
Mary Nolan

Anonymous said...

I find companies paying only 10% on customers are the ones over-inflating payouts on their products. I love customers, our Co. loves customers and they are the backbone of reliable Companies.

Roger Patola
Immunotec Inc.

D Creek said...

Hi Kim,
FreeLife pays around 15%. They have a point system so when you do the math it's around 15%. They market nutritional, weight loss,personal care, household etc.
You are right most companies have no customer programs at all for their members.
Thanks,
D Creek

Kim Klaver said...

Judy:

I've helped Mannatech folks for 9 years, and have always had a special place in my heart for them. I think your member plan works fine.

There was a time no such option was promoted, but it is now and it's great for this sort of program!

Mary - sounds good from what you write here...

Don and Roger, good.

All: I suspect you all will see some customers and perhaps Reps come your way because of pay plans that honor just customers/

Anonymous said...

Hi Kim
Correction: Your New School for Network Marketing was in the fall of 2006...
Thanks again
Mary Nolan

Karen O'Handley said...

Hi Kim...I'm with 2 different companies, both in the nutritional field.

The one I'm most excited about right now is NaturScience. The payout on customers is 25% of the point value of the purchase. An example is their lead product, LimuPlex. A box contains 30 packets, considered a month's supply for most people. The wholesale price is $46.95 per box, the point value is 40, so the payout is $10. If a customer were to buy this product directly from my site and pay retail ($56.95), then I get the additional $10.

Another big seller with this company is the Alkalark water device. The wholesale is $139.95, the point value is 100, so the payout is $25. The retail price on my site is $179.95, so if someone pays that price I make an additional $40.

Customers do NOT need to be on autoship to get the wholesale prices. Basically, that's up to the distributor to sell at wholesale or retail. I tend to sell at wholesale because most of my customers are my friends, acquaintances or referrals. And I like giving folks a break whenever possible.

NaturScience likes giving people a break, too, so they offer a reduced price on 4 boxes of Limuplex, and this is a favorite with lots of customers because it's a $42 savings: wholesale for the 4-Box Special is $145.95, point value is 100, payout is $25. Many of my customers have their whole family taking LimuPlex, so this discount is appreciated. Speaking for myself, I take 2 packs a day and my son does also, so I always buy 4 boxes a month, plus an extra box or two for samples to interested ones.

I guess the things that I like best and that I find so encouraging are that the majority of people really like the flavor of LimuPlex when they taste the sample. Plus the majority see positive changes in their health quickly (once they start using taking it daily) and they're happily telling others about it. So for me, as a distributor, this is very encouraging. Plus the commissions earned on customers pays weekly AND direct deposit is available -- which I love! So every Friday, there's a deposit into my bank account. Fast Start bonuses on recruits are also paid weekly and commissions earned from my downline distributors are paid monthly.

I could go into more details about all the ways that NaturScience pays their distributors but I don't want to bore everybody, so if anyone wants to ask me any questions directly, just email me at karenohandley@cox.net. And feel free to visit my NaturScience site at www.age-slower.com. But if you want wholesale prices on anything, or if you'd like to try a sample of LimuPlex, give me a call at (760) 940-9022. Thanks for your time! Karen O'Handley

Robin Plan said...

Hi Kim
My company has an easy to understand pay plan that anyone can follow:

We have a two tier plan.
I get 25% off the top of all sales I make. (20% to 28% payout based on total sales volume) No points or monthly volume requirements to get paid.

I get 10% off the top from sales of the affiliates I sign up.

So the affiliates I sign up will start out earning 20% of their own sales and 10% from all sales of affiliates they sign up.

This plan is based on the value of customers.

I noticed some telling what the signup fee was so I'll add mine...None.

Robin

Bryant said...

My company, Invisus Direct, markets Personal Computer Services and a true identity protection service. It pays 20% on my personal customers' monthly billing; 4% of the billing of customers of associates I sponsor. Per customer billing ranges from $15 to $50 per month, which is relatively small. But the retention rate is about 85% year after year.
Bryant Sandburg
bwsandburg@gmail.com

Anonymous said...

My company is Wellness International Network. All reps get a 10-44% discount on the product based upon their level in the program. Each rep can then sell at full price and make that profit or give a discount upto their wholesale price to their customer. Can be done through their website easily with a preferred customer code. The overrides on the downlines is paid on the full retail value of the product sold regardless of what discount that rep sold the product for. So if one sells their product at full discount, the upline still makes the overide. Very simple plan, very lucrative. We have weight management, energy, sports and fitness, prevention, skin and hair care. Our products retail from $38.95 to $99 for a months supply. That is a very competitive price and the profits can be huge even if one gave a discount to their preferred customers, like repeat orders, auto ship, family etc. Our plan is very balanced as far as building customers and reps.

Anonymous said...

Hi Kim,

I'm with Market America out of Greenboro, NC. They pay from 15% to 50% off the top and and avg of 75% credit toward commissions on all personal orders. We also get the 75% commission for ALL of your down-line partners. We are paid $300/1,200 points commission on each of two "legs" (2,400 points) plus a $600 bonus when you hit 5,000 and 5,000 on both legs. All points are accumulated for one year (NO monthly quota, so you don't lose your points) with a reset to 0 when you get 5,000 on each leg.

Anonymous said...

Nutritional beverage products are the fastest growing segment of the functional foods industry. Currently a great place to be in network marketing.

The company I represent provides "Discount Retail Customers" with a Preferred Customer option. They can receive 15% off the retail price (without becoming a distributor) at the company's replicated distributor websites.
All they need to do is get on Autoship as a "Retail" customer to get the 15% advantage. Very attractive price point for the product.

Even at this price, the distributor receives a 13% profit margin! In addition, the distributor gets paid on the volume (points) for commission purposes!

As you said, things are changing and network marketing is starting to "grow up" and we now are finding companies that are putting retail customers and distributors into the mix of an attractive product/compensation package.

cherish said...

Hi Kim,

Nuskin, my company pays me 12% for all my customers purchases. I can also purchase myself and sell directly and get up to 43% on sales.

We sell dietary supplement, cosmetics and antiaging products and toaletics.

Oshra Guy
c-winwin@hotmail.com

Anonymous said...

Amazon Herb Company pays 13% on
the continuing orders of personally sponsored customers.

The company also offers "Reward points" for people on Monthly Autoship, and basically treats
customers and distributors alike.

There is no fee for becoming a
distributor, an order of $50 or more is all it takes.

Nice and easy and definitely consumer friendly!