Infinity Bonuses & Blocking
A company may pay an achiever up to infinity levels of commission once he has built a solid organization.
Normally this reward system is useful for people who step up to the challenge to be leaders and are willing to work depth in his organization. Infinity bonuses also reward those leaders who help their downlines no matter how deep below they are within the organization.
Observe the diagram below:
As you can see, the star ambassador is like a leader who is servicing his entire downline group and there fore, he deserves to be paid 3% from everyone in the group.
When a downline reaches a level that is similar or higher than the upline (in this example, let us call him a STAR AMBASSADOR), the upline usually only receives infinity level overrides up to the downline that is also a Star Ambassador. This feature is known as BLOCKING.
Observe the next diagram:
Note: There are more bonuses to be awarded to the upline for nurturing a strong downline. Normally in the form of bonuses or eligibility for higher ranking.
Downline Building Strategies
Identify the strongest ones in your downline group and train them to become leaders so you will be able to leverage on them. In other words, that downline will keep on building the group long after you have stopped being directly involved with them. Although you may not draw infinity bonuses from their group, the company usually will give you a leadership bonus on the downline leader’s group. Usually the leadership bonus is smaller than the override or retail bonus, but it is like getting a smaller slice of a much, much larger pie.
Infinity bonuses can be really powerful and generate massive residual income if done right. If you were to train all your downlines in your group to be loyal product users, and you were to get 3% from all the volume, you will earn something like this:
3% * 1000 downlines (each buying $500 every month) = $15,000 monthly!!!
Starting a New Company
If I were to start a new company and give out infinity bonuses, you have to be very precise on the blocking system especially when you are using a binary plan (because of overpaying).
This is a topic that is very plan specific which I will not discuss here but will be explained in a later book.
The rule of thumb to remember is this: Reward leadership and do not cater to free loaders!
Summary and Closing
There you go! You have just run through the basics of Show me the Plan: Part 1!
A quick recap of what you have just learnt:
Why marketing plan training is very important
By mastering it, save you time and money on training and lost sales
Learning all the important terminology
Discovered the truth regarding marketing plan misconceptions
Strategize how to build your downline with the information
Know the importance of Point Value to Cash Calculation, Payout
Transparency, Buy Back Policy, Breakaway, Infinity Bonuses and Blocking
ALL this is just the icing on a delicious cake. In the upcoming posts, you will learn
Manipulating marketing plan mechanics to climb the ladder of success faster
Mastering the pitfalls of demotion
Maximizing your profits with stocks that can be used to sponsor new downlines
How to use maintenance to your advantage regardless of which company you are a part of
Lots more diagrams and illustrations on exciting new topics!
Stay with us now to find out how you can take one more step towards network marketing success!
SEE YOU AT THE TOP!