¶ Overview
The Accelerate Compensation Plan contains a number of preconfigured bonuses, commissions and ranks that can be adjusted based on your particular product, service and overall go to market strategy.
¶ Active Requirement
One of the most foundational requirements in any Compensation Plan is the definition of what it means to be "Active", ultimately being eligible to earn higher level overrides beyond the "Retail Sales" bonus. Affiliates/Reps are always able to earn a direct "Retail Sales" bonus based on sales they generate to Customers via their shopping cart - but in order to unlock additional bonuses/commissions; you can establish monthly performance requirements.
The most common requirement is a Personal Sales requirement, where they are only eligible for higher level bonuses/compensation if they've made enough sales to customers to qualify. This is evaluated based on a rolling 5-week lookback based on the week that commissions is being run for in order to provide a consistent timeframe for the field.
The primary decisions around Active are:
- Personal Sales Volume Requirement to maintain "Active" based on both personal purchases and customer sales.
- Grace Period (# of days) from enrollment to waive this requirement to provide time to build initial sales.
¶ Bonuses & Commissions
The bonuses and commissions that are included with the Accelerate Compensation Plan are grouped into the following categories of motivation:
¶ Personal Sales & Productivity
Retail Sales
Earnings paid to Affiliates & Reps based on sales made to their personal customers and pays out weekly. The exact amount paid is configurable at the Inventory Price level and is generally the difference in price between “Wholesale” and “Retail”.
- Setting Inventory Prices - Inventory Prices
Personal Sales Bonus
This bonus pays an additional bonus to sellers based on their total sales volume within a monthly period; motivating hitting higher sales thresholds.
Decisions to make:
- Number of levels to pay on this (1-5)
- Percentage Earned based on Sales Volume level
Example of 5 levels with a maximum payout of up to 5% if they achieved over 1,001 in Sales Volume in a period:
¶ Personal Mentoring Overrides
Personal Enrolled Sales Bonus
This bonus is designed to encourage collaborating with personally enrolled Affiliates & Reps in order to drive a higher sales volume within a monthly period by providing the ability to earn overrides based on hitting higher sales thresholds. In order to be eligible, the Rep would need to be Active in the period.
Decisions to make:
- Number of levels to pay on this (1-5)
- Percentage Earned based on Sales Volume level
Example of 5 levels with a maximum payout of up to 5% if one of their PERSONALLY ENROLLED achieves over 1,001 in Sales Volume in a period, enabling a "matching" bonus where both the people (Sponsor & Individual making the sale) earn the same %'s:
Level Bonus - Level 1
The overall "Level Bonus" can pay an overall commission based on the sales from deeper within an organization (e.g.: Personally Enrolled sponsors another Personally enrolled below them), but ultimately - paying on the "Level 1" means providing a direct override based on what your personally enrolled person sells.
This allows you to align the incentives, where if an Affiliate/Rep brings in a new member on their team - they are able to earn a consistent percentage of that new team members' personal sales. This provides motivation for the sponsor to help the new team member to become successful and generate sales.
Decisions to make:
- Payout % to Level 1 for the "Level Bonus"
¶ Team Leadership Bonuses & Recognition
Level Bonus - Levels 2-5
This bonus is designed to encourage sales leadership in order to drive sales results deeper within an individuals’ team by providing overrides based on how close a sale is to the individual. This bonus is able to pay up to 5 levels deep and is based on the sales. Additionally, this can be configured to have different payouts based on the Career Title/Rank of an individual - enabling accelerated earnings as someone progresses.
Decisions to make:
- Determining if higher ranks will be required to earn on deeper levels
- Payout % for Level 2 through 5
Example of a 5 level configuration that will only pay to the deeper levels (2+) at higher ranks; allowing for some level of requirements before paying the higher overrides.
Title Promotion Bonus
This bonus provides an additional incentive to progress through the Career Titles/Ranks, where they are paid a one-time bonus when they first achieve one of the established leadership Ranks (Bronze, Silver and Gold).
Decisions to make:
- Determine if you will include a Title Promotion Bonus
- Determine which Ranks will provide a bonus and how much will be paid when they achieve the rank
Example of a Title Promotion bonus where $.01 is paid when they achieve Bronze, $.02 is paid when they Achieve Silver, and $.03 is paid when they achieve Gold:
Revenue Share Bonus
This bonus provides an additional incentive for higher level leadership, where they have the ability to earn a monthly revenue share based on overall company volume. Eligibility for the Revenue Share Bonus is at Silver and Gold ranks, with the amount (e.g.: 1%) being able to be configured by the company.
Decisions to make:
- Determine if you will include a Revenue Share Bonus
- Determine the % of Revenue (based on Sales Volume) that will be put into the bonus pool to be paid to those who qualify.
¶ Ranks
The Accelerate Compensation Plan comes with up to five (5) ranks that allow for progression to higher titles based on both personal and team results in a given period. Ranks are based on a monthly period and Affiliates/Reps are not promoted until the monthly commissions are executed and "Committed". The following are the pre-setup qualifications that can be configured on a per-rank level and calculated on a per-month basis:
- Number Personally Sponsored Active Reps - This is the # of personally enrolled Affiliates/Reps that are considered "Active" based on the rules/requirements defined.
- Personal Sales Volume - This is the amount of sales volume that an Affiliate/Rep either purchases personally, or sells to Customers.
- Downline Sales Volume - This is the amount of sales volume that an Affiliate/Rep has in their entire team (including Customers deeper in team).
As an example, we have included the following table that shows the ranks and requirements needed for each - showing an increasing amount of both "Personally Sponsored Active Reps" and "Downline Volume" that aligns with the recognition/results this particular company is targeting:
