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Module C1 -
Learning the Basic Terms.
The Compensation is
presented graphically on one large page that
looks like a Monopoly board. At first glance it
seems complex and intimidating, but the Vollara
plan is not difficult once you understand its
purpose and learn a few terms. Return here to
refresh your compensation plan education from
time to time.
Want something really quick
and simple? See
Ev Nelson's Five Fingers Comp Plan.
PV
« GV
PV stands for Pay Value.
Every product is assigned a "volume number." The
Fresh Air Surround carries 225 PV; a Fresh Air
Box carries 110 PV.
PV is used for determining
qualifications and bonuses.
GV stands for Group
Volume, and on any product GV always equals
PV.
The difference is
simple. It's PV if you order it. It's GV if
someone in your group orders it. This works
upline and downline. If you are sponsored by
Bill, your PV is GV for Bill. If you sponsor
Sue, her PV is GV for you. Whether you have 5 or
500 people in a leg (or tree), your GV is the
total of all their PV.
Other Abbreviations and
Web Site Advisory
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ETV -
Enrollment Tree Volume
QETL -
Qualified Enrollment Tree Leg
AV -
Active Volume
LLV -
Left Leg Volume |
100 PV
needed to remain active by (date) -
The next date that PV is needed to
continue your Active status.
RLV -
Right Leg Volume |
Active
« Qualified
Active status is
reached by ordering 100 or more PV. An initial
order of a Fast Start Pack has 1,000 PV. It
makes you Active for the present week and 3
following weeks. The Fast Start Pack also
includes a 100 PV Autoshipment that comes 4
weeks later.
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100 PV Active
is the only Activity requirement; it
covers all bonuses. |
Qualified means you have
personally recruited 2 Active people and placed
1 on each side of your Placement Tree.
Notes:
1. Your
"personally recruited Active people" must be (a)
personally recruited and (b) Active with at
least 100 PV.
2. Your personally
recruited people do not have to be at the top of
your Placement Tree. Just make sure you have 1
in your Left leg and one in your Right leg.
3. It will be
strategically smart to have 2 or 3 personally
recruited Active people in each leg in case
someone fails to come through with his order at
a crucial time. A person may miss being Active
if his autoshipment fails to process when his
credit card is put on security hold by his
credit card company. Or if his credit card
expiration date expires and goes unnoticed. This
kind of innocent accident could cause you to
miss a bonus check.
Leg
« Enrollment Tree
Leg
A new leg begins each
time you recruit a new Distributor. All
people who are recruited downline from that leg
are said to be "in that leg."
A traditional
businessperson might speak of having many
accounts. A doctor would want to have many
patients. A CPA, many clients. In networking, we
speak of having many legs.
As we recruit
distributors, the computer creates a matrix of
people...and that matrix is called our
Enrollment Tree. The recruits line up in 1,
2, 3, 4, 5 order with each one being at the top
of a leg. Some distributors recruit other people
and the leg grows.
All new recruits
are entered into your Enrollment Tree like
grandchildren and great grandchildren in a
family tree. An Enrollment Tree can have any
number of branches, and it can continue down
through any number of generations, just as
Thomas Jefferson's family tree is still growing
in modern America.
Some Enrollment Tree Legs
do not multiply. We always hope to see network
growth, but it does not happen in every leg.
Statistically, more than half of all recruits
turn into dead ends. This is just the way
networks work.
If you plant 10
acorns, you will not get 10 oak trees. Nature is
not perfect, and neither is network marketing.
Imagine recruiting a lot of kids to play
football. They don't all show up for practice (a
matter of choice). They don't all make the team
(a matter of talent). That's reality. If we
toughen up our recruiting standards we will have
a better batting average, but we cannot change
the vagaries of human behavior.
Enrollment Tree legs
become part of the rank qualification formula
from Level 5 and higher.
Moving from left
to right across the top of the Compensation Plan
chart, Level 5 requires 1 strong leg, Level 6
requires 2 strong legs, and so forth all the way
to Level 11 where 7 strong legs are needed.
What do we mean by a
"strong" leg? For ranks 5 through 11, Level 3
Crystal 500 legs are the standard of measure
for bonus and rank qualification. But having a
Level 3 Crystal 500 person this week does
not mean that person will also qualify next
week.
Let us restate
this is a different way so there is no
confusion. Bonus and rank qualification are both
evaluated every week. A bare minimum Crystal 500
could help you meet your width goal one week and
then, if no GV is generated, not count the
following week.
Chippynews.com defines a
"strong leg" as a leg that has at least 1
committed leader (preferably 4 or more committed
leaders - the "Rule of Four" concept) and growth
every week through recruiting.
Advice:
A leg that meets
this definition will continue to grow until it
reaches the point that it will contain many
Crystal 500 people. The more people and leaders
a leg contains, the more secure it will be. Your
goal should be: To build it so strong that
qualification is never in question.
Strategic
suggestions:
[1] Try to develop
at least 4 committed leaders in each of your
Enrollment Tree legs.
[2] Try to build
geographical expansion in each of your
Enrollment Tree legs. Distributors who live 100
miles or more from their sponsors tend to assume
a bigger share of responsibility.
[3] Create a
leadership plan for each of your Legs. All
people are not the same. You have to think of
ways to work with and motivate people in many
different groups. The work of being a network
leader is quite interesting.
Binary Tree
« Placement Tree leg
The company computer always
maintains your Enrollment Tree, but it takes
those same people and stacks them into a
2-legged tree (Binary Tree) that is called your
Placement Tree. Your 2 binary Legs are different
from Enrollment Tree legs because the people in
your Left Binary Leg come from several
Enrollment Tree legs and the people in your
Right Binary Leg come from several other
Enrollment Tree legs.
Every distributor has his
own Enrollment Tree and his own Placement Tree.
One Placement Tree Leg will
almost always be stronger than the other. The
stronger one is called your "greater" Leg. The
weaker of the 2 is your "lesser" Leg. If the
Left leg is initially greater, that could
change. The Right leg could start growing faster
and become the greater leg.
As new Enrollment Tree legs
are brought into the business, you can "place"
each new recruit in your Left or Right side. Or
the computer will do the placement for you. The
computer always places each new leg on whichever
side is smaller at that time.
Might there be
some situations where you would want to
place a new distributor into your greater
leg?
Yes. These
reasons might come into play:
1. John Doe is
in your Left Leg which is currently your
greater leg. You recruit Henry Doe who is
John's nephew. It would be nice to keep the
family on the same side.
2. Pavel
Zakharova speaks Russian. In your greater
leg you have a Russian-speaking leader. It
might be advantageous to put Pavel on the
side where he can get support in his native
language.
3. Maybe your
lesser leg has some experienced network
marketers who are coming on strong. As you
evaluate their potential, you may decide
that today's greater leg will soon become
your lesser leg. Therefore, it might be in
your best interest to start adding new
people to the side that is "temporarily
stronger" but in need of future growth.
Once a leg is placed, it
can never move. All downline distributors in any
Enrollment Tree Leg will always be placed on the
same side. In other words, Enrollment Tree Legs
are never separated.
The Placement Tree (binary)
adds excitement by:
Allowing an upline
recruiter to motivate his Enrollment Tree
leaders by pumping up their Placement Tree. This
motivates the Enrollment Tree leaders to do more
personal recruiting.
The ultimate goals is to
have strong Enrollment Tree legs.
The Placement Tree makes it
possible for Team Bonuses to be paid to infinite
levels. This may sound mathematically
impossible, but that is not the case. A leader
with a large group can earn 5% on all volume
1,000 levels down and the company is only at
risk for 10%.
The math works
because each distributor is paid 5% on on the GV
of his LESSER leg and 5% on the same GV from his
GREATER leg. Mathematically, this is equivalent
to paying 10% on the LESSER side and just
flushing the same amount of GV from the GREATER
side. Thus, no matter what the level, the payout
is 10%. It is a brilliant concept and it works.
Business Building Strategy:
Binary versus Enrollment Tree
The secret of building a
strong business is to pay maximum attention to
your Enrollment Tree legs and let the Binary
Tree (also known as the Placement Tree)
take care of itself.
Your Placement
Tree will nicely take care of itself if you
continue building more and more Enrollment Tree
Legs.
"Don't I have to
worry about keeping my Binary Tree Legs
balanced?" No, you don't have to worry about
that. If you keep bringing in more Enrollment
Tree Legs and allow each new one to be placed on
your lesser side, the Binary Tree will balance
out.
GV on your Greater Side
carries forward if you are always Active.
However, if you are ever NOT ACTIVE, all your
Greater Leg GV will flush to zero. It then
starts building from zero the following week.
Each week you are
bonus qualified you earn 5% times your Lesser
Leg GV and 5% times the same amount of GV from
your Greater Leg. The leftover GV (on your
greater side) carries forward indefinitely. You
can collect on that GV as your lesser leg
catches up. If your lesser leg never catches up,
don't worry about it. It must mean you have a
very strong leg on the greater side.
The 4-week Active Cycle
Every Activation (100 PV) covers you for the current week and 3
weeks into the future.
There is no such thing as a
"fixed" 4-week cycle. Everyone's account works
from week to week and establishes its own 4-week
Active Cycle.
Examples:
Your 100 PV
autoshipment processes on a Monday. You are
Active for that week and three additional weeks.
Your website picks a date 4 weeks in the future
and informs you that you must reorder at that
date to remain Active.
But then you order
a LivingWater (1,000 PV) 2 weeks
later. Your Active status resets itself. It is
reestablished at 100 PV and the extra 900 PV
is applied to your lesser leg GV. Meanwhile,
your "Active alert date" is moved ahead to a
date 4 weeks in the future.
Suppose a
preferred customer places an order for 100 PV
one week later. Preferred Customer orders
influence your Active status. Again, your Active
status would reset. In this case, however, it
would be 100 PV Active instead of 200 PV Active.
At the close of
each week, the computer adds together your PV
for the week that just closed and 3 previous
weeks to determine if you are 100 PV Active or
200 PV Active. |
Becoming More
Qualified...
If you have big dreams and
big goals, nothing is more important than having
a solid handle on the compensation plan.
Some aspects of the comp
plan are simple and some are complex. For some
people, the strategic part comes across as
boring.
If necessary, call your
sponsor or some other upline for help.
Some people will think this
module is too detailed. Just do your best and
come back when you feel more ready for more.
Meanwhile, your Vollara
knowledge will grow based on:
1. Your real life
experiences in the trenches. Experience is the
best teacher.
2. Conference calls.
3. Information from the
company web site and media.
4. Meetings.
5. Other resources.
Don't let your initial lack
of knowledge slow down your recruiting. You can
recruit some fantastic people even if you don't
"get" any of this advanced stuff.
Your conviction about the
products will come through. Make sure you are
strong in this area.
Your belief in the company
will come through. Are you strong here?
Your enthusiasm for the
opportunity will come through. Are you a
believer?
Your sincerity about
helping the person you are recruiting will come
through. We hope you are very sincere in wanting
to help each person you recruit.
Knowing how to read a
blueprint is important for the roofing
sub-contractor and for the general contractor...
But the guy who carries
bricks and shingles up to the roof doesn't have
to know all the construction details.
He has to show up for work
and do his job! That guy may become a general
contractor at some point in the future. We all
have to start somewhere.
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Vollara
Training Webinars
Compensation Plan changes
by Joe Urso
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