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Old 02-15-2013, 02:01 PM
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liz.jewels liz.jewels is offline
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I am good at math and am trying to figure out the profit per $1000 assuming the bare minimum, but it's SO different, because the first company requires there be 140 people, minimum, in your downline, while the second company requires significantly less. In fact, not knowing what a Sr. Director's downline requirements are, and not knowing what a Director's downline requirements are, it's really hard to even estimate the minimum required downline in the second example. You haven't provided enough information to answer the question.

Ultimately, I would guess that these three companies have vastly different average sales and different signup fees, and different potential profit as a result. I wouldn't use the difference in top-of-company profits as the reason to join a company. How hard is it to get there? Is it reasonable to assume that, with company one, you'd be able to personally recruit 40 people and help 25 of them each recruit 4 people? That's a heavy recruiting-focused company.

With company 2, the focus seems to be more on building a few great leaders than bringing in a lot of people. It's also focused on bringing in people who really work their business. In that company, the average sales per downline rep is going to be much higher than in company one, regardless of what the answer is to my question about how many reps required for senior director and director. This company seems like more of a sales and leadership-focused company than a recruiting-focused company.

Now company 3 is interesting. This is a company that requires very little ongoing business productivity from its top-level leader, and doesn't set a number requirement on the downlines, but has a HUGE sales requirement from the organization. Since it's possible to earn a large income from your downline while doing little personal sales, I had red flags going up that this organization would require some due diligence to ensure it is not a pyramid scheme. Other red flags would be a large initial sign-up fee and large bonuses for signing up new reps. It's nearly impossible to estimate the earnings from this organization since there are no parameters I can use to estimate the distribution of reps through the downline. That being said, I would say this is a recruiting-focused company, since the only way I can think of to generate $250k in monthly sales is to have a massive team and constantly be replacing those who fail to renew or stay active.

Given these three comp plans and no other information about the company, I'd choose #2. But, that's me. You may be someone who is great at cold calling and building a ton of contacts and if that's the case, company 3 might be very lucrative if it meets the "small test" for being legitimate.
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