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View Full Version : Question on Commission
LilacLady
12-04-2008, 03:14 AM
My kit arrives on Monday. I can't stand the wait. I have so many
questions. My biggest question is on the money. I know that I make
40%. I read somewhere that the company includes extras in our orders to
help replenish product used at the parties. That amounts to around
47%. I'm curious, though, what other expenses we will encounter. My
experience has been when the commission is high, the consultant is
absorbing a lot of the expenses like paying for hostess benefits, credit
card processing, extra fees. Can you tell me what I can expect? Is it
possible to walk away with a true 40% earnings?
</PRE>
questions. My biggest question is on the money. I know that I make
40%. I read somewhere that the company includes extras in our orders to
help replenish product used at the parties. That amounts to around
47%. I'm curious, though, what other expenses we will encounter. My
experience has been when the commission is high, the consultant is
absorbing a lot of the expenses like paying for hostess benefits, credit
card processing, extra fees. Can you tell me what I can expect? Is it
possible to walk away with a true 40% earnings?
</PRE>
kennalyn1
12-04-2008, 07:59 AM
Hi Chris!
The company pays you back for hostess benefits in the form of free product that you earn monthly. It's all explained in the Designer Handbook you will get on Monday! You can choose to use the account credits immediately, or save them up (they accrue and roll over) and use them in one chunk.
Urban Botanic has negotiated exclusive rates through ProPay and there will be info on that in your kit too. The rates are really small with no quotas, minimums, etc. And studies show that sales are up to double when you're able to accept credit cards so it's completely worth it.
There are expenses to the business. Party invitations, catalogs, and gas money to drive to and from a party. That's a given with any company, and it does take away from your 40% profit, but if you concentrate on the amount of money you are earning, and not how much you are spending to get that earning, you are really coming out ahead. With any company it's probably not the full retail profit. We understand this, so we start our designers out with a very hight retail profit for the industry.
Not to mention, our products are consumable, so your customers reorder. When they do, it costs you almost nothing... no time to go do a party, no pre-party prep and materials, etc. So it evens out to be pretty close!
The company pays you back for hostess benefits in the form of free product that you earn monthly. It's all explained in the Designer Handbook you will get on Monday! You can choose to use the account credits immediately, or save them up (they accrue and roll over) and use them in one chunk.
Urban Botanic has negotiated exclusive rates through ProPay and there will be info on that in your kit too. The rates are really small with no quotas, minimums, etc. And studies show that sales are up to double when you're able to accept credit cards so it's completely worth it.
There are expenses to the business. Party invitations, catalogs, and gas money to drive to and from a party. That's a given with any company, and it does take away from your 40% profit, but if you concentrate on the amount of money you are earning, and not how much you are spending to get that earning, you are really coming out ahead. With any company it's probably not the full retail profit. We understand this, so we start our designers out with a very hight retail profit for the industry.
Not to mention, our products are consumable, so your customers reorder. When they do, it costs you almost nothing... no time to go do a party, no pre-party prep and materials, etc. So it evens out to be pretty close!
