MLM COMPENSATION PLAN DESIGN TRAINER
ROD TEACHES STUDENTS WHO WANT TO BE MLM PAY PLAN DESIGNERS

These Students Pay a High 5 Figure Amount for 3 Weeks of Classroom Training 

This is a letter to a student who flunked MLM Complan Design

Eric 

As the Master to a young man who is like a son to me because of  (1) his extremely high intelligence (2) who wishes to enter the inner circle of a Compensation Plan Masters (3)duplicate my production of "Billion Dollar Companies." "Tadpole" you have failed the first round as a "neophyte" sitting at the feet of the top Compensation Plan Master trainer. 

You must listen closely - I told you the way to kill a company is through use of a Generational confused Unilevel.  They are off no use and are a scab on the face of MLM. 

To learn to be a Compensation Plan Master you must listen closely.  I also told you to go through the worlds largest MLM Company listing on the MLM WatchDog to count the Generational confused Unilevels... then to use Alexa.com to measure the size of what very few Generational confused Unilevels pay plan there are.  Then you were to come back in one year to see if any of the few survived.  Eric I have done this  for 16 years since I started the MLM Company list. MLM Generational confused Unilevels are dropping like a rock!  

To have a clear path to conquer the MLM Marketplace a warrior Complan Master must have peace in his mind.  A MLM Compensation Pay Plan is just not a series of numbers.  It is a flow of people; it is their hopes, dreams and needs... Not what you think numbers should be.  I must react when you do not give correct data.  The soul of the humble MLM Distributor must be the focus, you must be in financial balance so your MLM Company stays alive to keep the hopes and dreams of your MLM Distributors alive. 

My tadpole, you must learn to listen or you will never become even a mid - level Compensation Plan Designer, despite your extremely high IQ.  You have failed the basics of human psychology and mathematics with the pay plan you have presented.

 Focus my Tadpole

 Rod

The Master Trainer - MLM Compensation Pay Plan Designers

    --------PAY PLAN THAT DREW THE WRATH OF THE MLM COMPLAN MASTER TRAINER ROD COOK ------

I had spent two weeks with "Tadpole" in classroom and real world training.  He then secured a complan design job for a new company and came up with the disaster below as shown in the programming notes to the computer company.  The company  owner said "Tadpole" is doing strange things when the owner asked questions of the programmers.  Because "Tadpole" was trained by me one week in Singapore and a week in Texas the owner came directly to me.  These are my notes in "Tadpoles" design notes to the MLM computer programmers.

My Notes - Rod Cook are in red - the rest are what "Tadpole" had put in the MLM Computer programming design chassis.  Name change of company to protect the MLM - Network Marketing Company.

---------------

Through: Tadpole – Jr. Complan Designer Trainee

To: CEO Fredrick Smith - The Alligator MLM Company

 Comments in red below are NOT acidic or critical............. they are intended to be instructional in nature....  OR to clarify an issue to me for further development in fixing your  MLM – Network Marketing complan design. 

Rod Cook

The ALLIGATOR MLM Company 

Programming MLM Complan Information

·        Sql Server : MSSql

·        CompanyId : 3973 

Volume Buckets (Types) 

1. ( PVA ) Personal Autoship Volume
2. ( TCV ) Team Commissionable Volume?
3. ( FSQ ) Fast Start Qualified
4. ( AA ) Autoship Active
5. ( FSCO ) Fast Start Carry Over
6. ( FS100 ) Fast Start First 100
7. ( FSTD ) Fast Start To Date
8. Do we have a preferred Customer status?  Formula [1n + %] above wholesale?
9. What are our incentives built into the plan to get Distributors to retail – no bucket for online internet sales.. ?
    

ADD More Pay plan buckets here________________________________________________________________________

Rank Definitions for Compensation Pay Plan Programming 

-20. ( EX1 ) Number Of EX1’s Sponsored – MLM Executives sponsored in Network Pay plan 

21. ( EX2 ) Number of EX2’s Sponsored– MLM Executives sponsored in Network Pay plan 

22. ( EX3 ) Number of EX3’s Sponsored – MLM Executives sponsored in Network Pay plan 

23. ( MGR1 ) Number of MGR1’s Sponsored – MLM Managers sponsored Network Pay plan

24. ( MGR2 ) Number of MGR2’s Sponsored– MLM Managers sponsored Network Pay plan 

25. ( MGR3 ) Number of MGR3’s Sponsored– MLM Managers sponsored Network Pay plan 

26. ( DIR1 ) Number of DIR1’s Sponsored – MLM Directors sponsored in Network

Pay plan

27. ( DIR2 ) Number of DIR2’s Sponsored– MLM Directors sponsored in Network

Pay plan 

28. ( DIR3 ) Number of DIR3’s Sponsored– MLM Directors sponsored in Network

Pay plan

Important MLM  Definitions for Computer Programming 

• Bonus Volume (BV):  The value assigned to specific products on which commissions are paid unless otherwise indicated. Little dated
•  
• Personal Volume (PV):  The sum of the bonus volume achieved by a distributor on all sales during the measurement period addressed at any particular time under either the compensation plan or other reward programs that may be implemented by the Company.  Is there a PV offset?
• Customer Types:
  • Retail Customer, referred to as simply a Customer end consumer who is an end Consumer.
  • Distributor “Customer” lets talk about this or the FTC may!, known as a Distributor
• Enroller Tree  (ET):  Plan uses only one downline tree based on the placement of the enrollee (recruit) by the Enroller (Enroller).  All membership tree bonuses are based on the enroller tree.
•  
• Quarterly Qualification:  This refers to the calendar year, with the first quarter being the first 3 months of the year, the second quarter being months 4 through 6  Jan, Feb, Mar  Slow not good why not monthly
• Standard Compression:  Commonly known as rollup and compression?  Are we using the same terms?  This compression technique pays the upline based on that level being currently qualified, meaning meeting the monthly autoship qualification. 
•  
• (LR) Leadership Ranks  These are the ranks eligible for the Leadership Pool bonuses.  They consist of Dir3, Dir4, Amb1, Amb2.  What is the retention intent these will dilute out and not effective.
• \\ n+2 -v
• (TCV) Team Commission Volume:  The total BV of your Team where Team is defined as the first 3 levels of a leadership rank (LR) level’s downline (front line, level 2 and level 3, no BV qualification, compression or skipping).  TCV includes LRs own PV.  You said before on the face of the compensation pay plan you had compression isn’t this a breach of trust??????
• Frontline: is the first level of direct enrollees unless a second or lower generation moves up if one of your personally enrolled frontline members drops out of the program.  Unilevel intention in a sick Generational plan>>???
• Generation Bonus.  Generation Same as above in this case is just the level beneath the frontline, there is no skipping levels during payment or compression used in paying the generation bonus – But we are showing lateral = horizontal generations.... low commissions to start (DEATH) and higher commissions as generations move laterally = up rank.

Distributor Annual Renewal  (payment)

• automatically renewed in the yearly anniversary month of their enrollment
  • 1 year since enrolled or renewed, deducted calendar month after enrolled.
  • No personal commissions on the first 100 BV points ordered in their anniversary month = Explain Logic?
  • No order in the anniversary month, the above rules would apply to their next order.

 Ranks - Unilevel

• (EX1) Executive Level  1
  • Qualification and Maintenance
    • 100 PVA
•  (EX2) Executive Level  2
  • Qualification and Maintenance
    • 100 PVA
    • ( 1 ) EX1
    • 500 TCV
•  (EX3) Executive Level  3
  • Qualification and Maintenance
    • 100 PVA
    • ( 2 ) EX1
    • 1200 TCV
•  (Mgr1) Manager Level 1
  • Qualification and Maintenance
    • 100 PVA
    • ( 2 ) EX2
    • 2500 TCV
•  (Mgr2) Manager Level 2
  • Qualification and Maintenance
    • 100 PVA
    • ( 3 ) EX2
      • NOTE : Because we want 3 distinct legs, this configuration says we need 3 EX2 legs, with one of those legs being an EX3.  This logic is used throughout all rank definitions
    • ( 1 ) EX3
    • 5000 TCV
•  (Mgr3) Manager Level 3
  • Qualification and Maintenance
    • 100 PVA
    • ( 3 ) EX3
    • ( 1 ) MGR1
    • 9000 TCV
•  (Dir1) Director Level 1
  • Qualification and Maintenance
    • 100 PVA
    • ( 3 ) MGR1
    • ( 1 ) MGR2
    • 16000 TCV
•  (Dir2) Director Level 2
  • Qualification and Maintenance
    • 100 PVA
    • ( 3 ) MGR2
    • ( 1 ) MGR3
    • 26000 TCV
•  (Dir3) Director Level 3
  • Qualification and Maintenance
    • 100 PVA
    • ( 3 ) MGR3
    • ( 1 ) DIR1
    • 40000 TCV
•  (Dir4) Director Level 4
  • Qualification and Maintenance
    • 100 PVA
    • ( 4 ) MGR3
    • ( 2 ) DIR1
    • 55000 TCV
•  (Amb1) Ambassador Level 1
  • Qualification and Maintenance
    • 100 PVA
    • ( 5 ) DIR1
    • ( 2 ) DIR2
    • 80000 TCV
•  (Amb2) Ambassador Level 2
  • Qualification and Maintenance
    • 100 PVA
    • ( 7 ) DIR1
    • ( 4 ) DIR2
    • ( 1 ) DIR3
    • 120000 TCV

Bonuses           

(CC) Customer Sales Commissions (Coupon)

o       Paid Out How Often? ( Weekly, Monthly )

• Pays to Customers Only?
• Pays on every 195 in Total Sales
• Creates 12.00 Coupon for every time the goal of 195 in sales is reached.
• Email Sent with Questions
• Coupons attract the wrong legal attention NFL, and at least six other companies.. hit by  Florida, North Caroline, South Dakota Attorney Generals and others,

(PVR) Personal Volume rebate (one major reason old companies dying rebates – a stair step feature now dooming companies to failure)- Why?  Double Taxation by IRS! 

• Paid Monthly
• Qualification:
  • 100 PVA
• Uses Enroller Tree
• Pays on BV
• Pays 15% directly to Distributor 
• Does Not Include first 300 in sales.  Although an order could be split.  For example, if a distributor has 270.00 in initial sales within the first 60 days, and places another order with 100 PV, 70.00 * .15 will be used as the payout.

NOTE From  conversation:  The Fast Start Bonuses were broken down into 3 groups, this was done so that auditing of these items would be easier, and clawbacks could be done for these orders – This shouldn’t be done this way

 What do you want to do below – Fast start is not 60 days?

 (FSC) Fast Start Commission First 100

• Paid Monthly   
• Pays On First 100 BV in 60 days, Or Total BV in 60 Days  NOT A FAST START
• Pays To the Order Owner ( Recruit )
• Pays 30% of PV
•  

(FSC2) Fast Start Commission 200

o       Paid Monthly

o       Pays on first 300 BV in 60 days, Or Total BV in 60 Days

o       Does Not include first 100 BV ( see FS100 bonus )

o       Uses Enroller Tree

o       Pays to Order Owner & Enroller

o       Pays 15% to Order Owner

§         No Qualifications

o       Pays 15% to Enroller

§         Qualification 100 PVA

(FSC3) Fast Start Commission Upline

• Paid Monthly   
• Pays on First 300 PV in 60 days, or Total BV in 60 Days
• Uses the Enroller Tree
• Pays To the 2^nd Level Enroller and Above? huh?
• Uses Compression
• Qualification
  • 100 PVA
• Pays 2% of BV

  (UC) Unilevel and Generation Commissions errrrrrrrrrr you are showing both generational and unilevel at the same time err   ... 

            Paid Monthly

• Paid based on BV
• Uses the enroller tree
• Does Not Include Fast Start Volume
• No Compression  You already said you had compression
• Qualifications based on Paid Rank No compassion no slack huh?

(LPC) Leadership Pool Commission Too complicated and too diluted pools to be attractive to serious players.................

·        3% of company wide BV

·        Dir 3 and above for entire quarter?

·        Percentage of bonus pool is allocated as follows:

o       Dir3           10%

o       Dir4           20%

o       Amb1         30%

o       Amb2         50%

·        Above % allocation based on lowest rank level during the quarter.

·        qualifying Ranks first 3 levels of TCV is determined including their own PV

·        Using this formula: The amount of bonus paid to each leader is determined as follows:  Bad example – bogus bait not reality – leaders leave

o       (Total TCV of the leader/Total TCV of all Leadership Ranks  * Bonus allocated to a specific leadership pool rank)

Example:

                        Assume that 3% of all BV is $1,000,000.

                        Amount allocated to Rank Dir4 (20%) is $200,000

                        Total TCV Dir4 is $5,000,000

                        Sam Jones TCV is $500,000

                        Sam’s LPC is:

                                    ($500,000/$5,000,000)*$200,000=$20,000. 

(RSP) Retail Sales Pool         No Longer In Plan ???? Why?

Final note Rod Cook - The only thing worse could be a Matrix "Death Box" !

                      MLM Generational Pay Plans From The Complan Design Master Trainer!

STAIR STEP AND GENERATIONAL THESE ARE MLM COMPENSATION PLANS WE KNOW BETTER THAN ANYONE ELSE IN WORLD, AFTER USING THEM FOR ALMOST 20 YEARS. We can give you the numbers of the bigger companies using them, and have published many an analysis of them in the modern market place. We are the world's best at converting these for existing companies so they can survive in the modern worldwide market. From outward appearances, they are the most popular MLM Pay Plan, but today they are sagging and not many leaders would call them the best MLM Pay Plans. Generational Plans create conflict between Upline and downline, so we aren't about to call them the best MLM Pay Plans!

YOUR BEST MLM COMPENSATION PAY PLAN TOOL:
  Rod Cook's 80+ page illustrated book on MLM Compensation Pay Plans
That Comes FREE With The Monster MLM Startup Book!

This MLM Pay Plan Book is great because it has BIG DIAGRAMS and explanations. Rod Cook is one of the major researchers in MLM, Network Marketing, Party Plans, and the entire Direct Marketing arena. He has almost 40 years of experience in Network Marketing (MLM). He and his staff of reporters at the MLM WatchDog review and analyze almost 1000 companies a year. He has done this for 20 years of publishing and is one of the most knowledgeable persons in the world on the subject of MLM Companies, their sales psychology and pay plans. He has helped start top companies and consults with many others. Because of the Distributor Rights Association, he consults with many top MLM Distributors as their personal consultant. If you want to buy this book separate from the MLM COMPANY STARTUP BOOK (see order above) go to Amazon and put in Rod Cook. You really want the Big Book with the Compensation Plan Plan book because it has all the little dirty details of each MLM Compensation Pay Plan the Binary, Generational confused Unilevel, Stair Step, Generational and Stair Step - Generational. Learn the details of the world’s best MLM - Network Marketing Compensation Pay Plans. What many folks think are the Best MLM Pay Plans, aren't!

References to Best MLM - Network Marketing Compensation
Plan trends and designs that are in
AMERICAS MLM CONSULTANT’S MLM LIBRARY