The oily Biz
how we get paid
So, how much do you have to buy?! 3 Ways to Qualify!
1. You must purchase 50PV in the same month you enroll someone to qualify for a commission check.
2. You must purchase 100PV in the same month to receive any commissions after the initial sign-up month to receive commissions off any downline members.
There are no quotas or inventory. Something unique about Young Living is that your "customers/members" have their own account. You never have to order for anyone.
3. Retail Customers: While we encourage you to build wholesale members, as it is best for you and for them, if you have someone sign up as a retail customer (Who wants to pay full price? Not me!), you will relieve 24% commission of any sales.
Let’s chat MONEY!
You might be wondering just IF this oil business can be a real substantial paycheck for us. Take a look below at the Young Living income disclosure to see average paycheck numbers at the different ranks of YL.
The average household income is $57,000 a year.
An average SILVER makes $2,088 a month which equals over $24k a year.
What if you added $20,000 a year to your household income?
What changes could that make in your life?
What if you added more?
The average GOLD makes $5,666 a month.
That equals over $67,995 a year.
What changes could that number make in your life?
The average PLATINUM makes $13,872 a month.
That equals over $166,468 a year.
How could that number change your life and your kids lives and your spouse’s life?
The average DIAMOND makes $35,348 a month.
That equals over $424,178 a year.
What kind of difference could you make in the lives of others with that number?
The average ROYAL CROWN DIAMOND makes $144,551 a MONTH.
That equals over $1.7 MILLION a year!
What kind of legacy could you leave for your kids and your kids kids? What kind of legacy could you build for other people around you? What kind of difference could you make in your community?
OK... before we begin... you do NOT need to know or understand all this or any of it. So friend, don't stress.
Fast Start & Premium Starter Kit Bonus: These two bonuses are the ONLY components of the Compensation Plan that are based on the Enroller. All other components are ultimately based on the Sponsor.
Premium Starter Kit Bonus: This is also referred to as the Start Living Bonus. This is a one-time $25 bonus paid to the Enroller if the new member purchases a Premium Starter Kit. Many times, this is explained to new members as being $50 because the leader is wrapping Fast Start and the Premium Starter Kit bonus together. Make sure you educate your teams that the Premium Starter Kit Bonus is a $25 bonus and it is paid to the Enroller. If you sign up a new member and then strategically place (stack) that person and you stay the Enroller you will still earn this bonus. If you strategically place the person and make their new Sponsor also their Enroller, then they will get the bonus. Also not all new members get to participate in the bonus. Some markets outside of the U.S. do not offer a Premium Starter Kit or have regulations that prevent this bonus from being available to the members.
Fast Start Bonus: This bonus is multi-faceted. There are two main parts to the Fast Start Bonus. The first part is that the Enroller will earn 25% of the new members PV for the first 3 calendar months. The wording 'first 3 calendar months' is important here. The month the member signs up is counted as month 1. If you strategically place a new member and you remain as the Enroller, you will be the one earning this bonus. If you strategically place the new member and you make the new Sponsor also the Enroller, then they will earn this bonus.The second part to the Fast Start Bonus is that when a new member is enrolled by someone you are the Enroller of, you will earn 10% of the PV of the new member for their first 3 calendar months.
For example, if you enrolled Sue 2 years 4 months and 5 days ago and Sue enrolls Julie, you will earn 10% of Julie's PV for her first 3 calendar months. I'm being a bit funny about the 2 years 4 months, etc. but it is important to know that when a new person is enrolled, at any time, and you are the Enroller of the person that enrolled the new person you will earn this bonus.Important thing to keep in mind: The Fast Start bonus causes YL to pay out a large amount of commissions for the first 3 calendar months of a new member. Because of this, all components of the compensation plan leverage a reduced PV for the new member while in those first 3 calendar months. Think about this: When a new member is enrolled, YL may be paying 25% to the Enroller. They are also paying 10% to the Enroller's Enroller. They are then also paying Unilevel and Generation Leadership Commission on that person to their uplines. For that person's first 3 months YL (depending on the team structure) could be paying 50+% of that person's PV out in commissions to various people. How great is that?!? YL Steps up heavily to say Thank You for sharing these great products with new people and the Fast Start Bonus is a great example of that generosity.
Fast Start Bonus: This bonus is multi-faceted. There are two main parts to the Fast Start Bonus. The first part is that the Enroller will earn
1. You are eligible for Unilevel Commissions if you have 100 PV. This does not have to be ER PV. I've been asked this question a few times.
2. In Young Living the commission percentage that can be earned for a given Level is the same for all ranks. What is NOT the same is how deep you earn. If you are a Distributor with less than 100 PV you earn on 0 levels because you must have 100 PV to qualify for the commission. If you are a Distributor with 100 PV or more you will earn on two levels. For each rank beyond Distributor, you earn an extra level on Unilevel Commissions up to a maximum of 5 levels. So once you hit Executive, you are earning at 5 levels and ranks beyond. Executive will still earn you 5 levels of Unilevel Commissions. The commission percentages are from level 1-5: 8%, 5%, 4%, 4%, 4%.3. When you earn Unilevel Commissions, you are earning based on the PV of the members in that level. For example: If Sue is in your Level 1 and has a PV of 100 you will earn 8% in commissions.
When you have a person in your downline that is in their first 3 months (whether you are the Enroller or not) you will earn your Unilevel Commission based on a REDUCED PV. For example: If Sue was enrolled in your downline at your Level 3 last month and her PV this month is 100 you would earn 100PV * 0.30 (this is the reduction multiplier) * 0.04 (Level 3 Commission %) which would equal $1.20. Keep in mind that this has nothing to do with you being the enroller. If Sue is in her first 3 months, all components of the compensation plan dealing with commissions will leverage her PV at a reduced amount. Hope this helps you to better understand Unilevel Commissions.
Generation Leadership Bonus & Generation Leadership Commission: This will be a Long one... so be patient and digest it in parts. If there was one single component in our comp plan that was voted most likely to confuse, this would be the one. The confusion is mainly centered around the concept of a Generation. As a primer for this compensation plan component we will review what a Generation is. What is a Generation? Let me first start by saying that understanding generations is crucial to understanding 'how' you get paid by YL. As your business grows, the Fast Start Bonus and the majority of your income will come from the combination of Generation Leadership Commission and Generation Leadership Bonus. Everyone usually understands what Levels are...they are simple enough and are merely based on the traversal of your downline by sponsor. When learning and understanding about generations...FORGET LEVELS…as they have no bearing on what a generation is. The first generation is also referred to as your Personal Generation. What is your Personal Generation? Well, it is all of the people in your downline in each of your legs UP TO but not including Silvers. Generation 2 begins when you hit a Silver or above in your Personal Generation. They can be in different levels, different legs etc as those concepts have no bearing on generations. Generation 3 begins when you hit a Silver or above in your Generation 2. You getting the idea?Generations are VERY DIFFICULT to try and figure out since they have no bearing on levels or legs.(I'm repeating that for a reason). Oily Tools will tell you at any given point in time what generation a person is for you. I know…cool right. There is a graphic attached to this post that gives a very simplified view of an example downline and its generations.Now that you understand generations, let’s talk about the compensation components that are based on this idea. First, we will tackle the Generation Leadership Bonus.
Generation Leadership Bonus: The Generation Leadership Bonus is a share based bonus where the share value is based on 6.25% of YL's total commissionable sales for the month. For Example: If YL has 10M in commissionable sales, that means that they will allocate 625K to be paid by this commission. If they have also awarded 4K leadership shares, the share value will be 156.25. Currently OilyTools uses an estimate of 135.00 for this share value. The actual share value has been a bit higher but we like to be conservative.
1. You will receive 1 share for being silver, 2 for gold, 3 for platinum, etc.
2. You will also earn shares for Silvers or above in your downline if they are in your generation pay line. A caveat here is that you can only earn on a given person the number of shares you get for yourself. Huh? Ok that means if you are a Gold, you earn 2 shares. Let’s say a Diamond is in your downline (yeah pretty sweet) and you think you are going to get 3 shares for the Diamond. You don't. Since you can only earn 2 shares for yourself, your maximum shares awarded would be 2 for the Diamond. Make sense? Awesome! Generation Leadership CommissionThe Generation Leadership Commission is a commission paid to you based on the cumulative PV of the generation you are getting paid on. The commission percentages are the same for all ranks but what is not the same is how deep you earn. The minimum depth you earn is 3 generations at Silver and the maximum is 8 at Royal Crown Diamond.
For each rank beyond Silver you earn one more level deep. The commission percentages in order are: 2.5%, 3%, 3%, 3%, 3%, 3%, 3%, 1%.Your Generation Leadership Commission is based on the cumulative PV for all the members in the Generation but that does not mean you use 100% of every person's PV. If you are getting paid on a Generation and there are members in that Generation that are in their first 3 calendar months, their PV will be reduced by 70%. Think of it this way. If you are getting paid on Sally for Generation Leadership Commission and she is in your 2nd Generation, you will earn 3% on the cumulative PV of everyone in her generation where the cumulative PV is calculated by looking at each person and saying: If they are in the first 3 calendar months, use 30% of the PV, otherwise use 100% of their PV. Once it is all added up, you multiply it by the commission percentage for that generation or 3% in the case of Sally. This is an area where OilyTools shines very bright. We determine your entire generation tree each day so that we can also calculate the Generation Leadership Bonus and Generation Leadership Commission. If you are a new Silver you could probably do this by hand but it very quickly becomes unmanageable because you have to use the PV, Activation Date, and Rank of EVERY member in your downline to calculate this correctly. Over time, I think you would agree, that would make your head explode!
-All info compliments of Annie Hauser