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Questions - Agel Comp Plan
November 11, 2005
(Questions from Mark Jr. about the Agel Compensation Plan. - Answers by one of the WhyAgel World Team Leaders.)
With this type of compensation plan, what would the potential earnings of a Quadruple Diamond Director be?
To qualify as a Quadruple Diamond Director you must have 1,000,000 commissionable volume (CV) in your lesser leg and you must have at least 20 personally enrolled people who have qualified at the Director level (10,000 CV lesser leg).
The Team Volume Commission (TVC) portion of the compensation plan caps out at 250,000 CV giving you a $25,000 commission.
Having 20 qualified Directors on your first level of your "enrollment" tree means that you are getting a 50% Leveraged Matching Bonus (LMB) on their Team Volume Commission amounts of at least $1000 each. So you are getting a LMB of $500 x 20 = $10,000.
As a Quadruple Diamond Director you would also qualify for a $3000 Car Bonus and a $3000 Travel/Expense Allowance.
So your minimum total as a Quadruple Diamond Director would be $25,000 + $10,000 + $3000 + $3000 = $41,000 (minimum).
But in order for your 20 Directors to become Directors they have probably sponsored more than one person. So you will have people on your 2nd - 7th enrollment tree levels and you would also be receiving a LMB for each of these people (50%, 8%, 8%, 8%, 10%, 10%, 6%) which could add up to $1000s more.
Also if you purchased the Executive Kit as your Business Activation Order, you have two other business centers that could also be earning you up to $25,000 TVC each (plus LMB within those other "legs/teams").
So I can tell you the minimums, but I can't guess on the total LMB which will be different for everyone. Also you could have some Fast Start Bonuses each month as you personally enroll new Team Members.
I know that Randy Schroeder's first check was about $83,000 and he is at the Diamond Director level. Currently I think there are two maybe three people at Diamond Director level.
The company/opportunity is so new there is still a universe of potential. And it is possible (through the LMB) that anyone, anywhere in the Team Member structure can be earning more than people above them. You can sponsor someone who becomes A Diamond Director, but that doesn't automatically mean that you will also be a Diamond Director. You have two legs/teams and so you still have to work your business.
(If you sponsor one person on each side who become Diamonds, then you will automatically be come a Diamond since you will have the volume on both of your sides.)
This compensation plan truly rewards you for your efforts and rewards you in proportion to the amount of your efforts.
And it keeps rewarding you - a true residual income. You don't loose people or volume when you help Team Members in your downline become a Director or Diamond Director - no breakaways. They stay in your downline and continue to help you increase your business and advance in rank.
This compensation plan, has no income caps correct?
There are two caps you need to be aware of.
First, in each business center (you can have up to three if you purchase the Developer or Executive Kits) your Team Volume Commission (TVC) caps out at a maximum of 250,000 volume giving you a max TVC of $25,000.
Second, entire company pay-out on commissions caps out at 50% of sales. This keeps the company solvent and in business. But this also means that the company pays out the entire 50%, not just "up-to" . It all goes out as commissions.
Some companies claim to have 50% or higher pay-outs but that is only theoretical, they don't actually pay that much out, because there are many rules and qualifications that 90% of the distributors do not meet and therefore don't get paid those commissions or bonuses. The company usually keeps the "extra".
If Agel hits the 50% cap, the amount over is calculated and a percentage is discounted from each Team Member from the top person down to the newest member. This makes the discount proportionally fair.
For example if the company had $5,000,000 in sales in a month and had scheduled commissions of $2,600,000 that is $100,000 over the 50% cap. $100,000 is 3.85% over the 50% cap, so each person's commissions would be discounted by 3.85%. Randy Schroeder at $100,000 may have is commissions reduced by $3,850; Joe Newguy would only have his $100 commission reduced by $3.85.
That may not sound very exciting to have your commission check reduced, but I would much rather the company employ fiscal responsibility in order to stay in business, than over-obligating itself and getting crushed under it's own compensation plan.
And to me it shows that Agel's experienced management team is aware of pitfalls other companies have run into and are making plans in advance to avoid them.
Personally with the Leveraged Matching Bonus, there is no income cap (except the company-wide 50%). So if you sponsor 1000 Team Members you will receive up to 1000 Leveraged Matching Bonuses; plus additional bonuses for Team Members in your enroller tree down through 7 generations of sponsorship.
That is where the really big money comes in. I predict that Team Members beyond the Corporate Director level will receive more of their commission from their LMB than from the Team Volume Commission. And the LMB will only increase as their organization grows.
In interviews there is talk of securing "legacy positions." What exactly are the people referring to? Is there only a certain amount of these positions available, and when does the window close on these?
Officially "Legacy Position" was/is a term used to refer to people who joined Agel prior to the Official Launch October 22nd. There was a legacy pin that was given to the people who attended the Launch and there may be some designation or identification at future conferences, but I don't think there is any monetary advantage.
It has been barely two weeks since the launch and it is still very early in the game. I believe there are still less than 33,000 Team Members.
I think people still use the terms "legacy position" and "foundation member" to emphasize that this is the time in the company's growth curve that has the most opportunity for people who get in and get going.
One of my favorite quotes on opportunity is by Rac Kroc, founder of McDonalds: "The two most important requirements for major success are: first, being in the right place at the right time, and second, doing something about it."
I believe this is the right place and the right time with Agel and I am doing something about it!
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