Business Basics Training #2 - Compensation Plan Basics
Are you ready to dive in and learn how you can get paid from Young Living for giving those you love most access to their own membership?! There are many layers to this compensation plan but we are keeping it simple by teaching you the few things you need to know to launch off here in Compensation Plan Basics. We will review what bonuses you will receive by bringing in a new member and how getting them into Essential Rewards and encouraging them to share with those closest to them can grow your check in major ways!
It’s important to learn the language of Young Living so as we continue in the course, you will know what all the abbreviations mean.
PV - Personal Volume - This is the total PV (Product Value) you have ordered each month.
OGV - Organizational Group Volume - This is the total PV you and everyone in your organization has ordered each month.
VO - Virtual Office - This is our member portal where we place and manage orders and monitor our organizations.
ER - Essential Rewards
PSK - Premium Starter Kit
Enroller - The person that introduces a new member to Young Living. The Enroller earns the Starter Kit and Fast Start Bonuses for their new members.
Sponsor - The new member’s direct upline. The Sponsor will receive unilevel commissions on a new member once they phase out of their first three months of membership.
Levels - Go across in your organization.
Legs - Go down in your organization.
In order to receive all possible bonuses and commissions, be sure you are spending 100 PV on Essential Rewards every month you desire to receive a check. Why? Young Living wants to make sure those earning income are truly passionate about the products. This is so easy to get covered, friends! Enrolling one to two new members a month covers your minimum order and you can also use it as an opportunity to ditch and switch, order gifts, try new things and stay stocked up on what you use most.
We are paid on the 18th of every month for the previous month’s commissions. For example, you will be paid on February 18th for the commissions you earned in January. Enrolling in direct deposit is encouraged so you receive your bonuses and commissions even faster! This can be done in the VO under My Account.
You will receive a $25 Starter Kit Bonus for every new member that uses your member number as their Enroller when they order one of our four Premium Starter Kits… oils/diffuser, Thieves, NingXia Red or Savvy.
You will also receive a 25% Fast Start Bonus for every new member that uses your member number as their Enroller when they order one of our four PSKs. This bonus gives you 25% of everything they order for their first three months! This really adds up so it gives you an extra encouragement to get them into ER right away by helping them add extra goodies to their PSK order.
As your personally enrolled members start to enroll new members of their own… you can start receiving the 10% Fast Start Bonus. This bonus gives you 10% of everything their new members are ordering for their first three months! This can be a huge part of your check every month if you are normalizing enrolling for everyone you bring into Young Living.
Let’s look at two scenarios to see how these initial bonuses can look for you. In the first scenario, you enroll a new member with a PSK. In the second scenario, you enroll a new member with a PSK + a 90 PV ER Order and they go and do the same with their best friend.
You receive almost twice the amount of bonuses in the second scenario… by simply encouraging ER enrollment and encouraging your new member to ask others on this journey with them. We will learn more about how to do this in the next three modules but remember how powerful this is as we move forward.
Once your new members phase out of their first three months of membership, you will drop the Starter Kit and Fast Start Bonuses and pick up Unilevel Commissions. This is based on the level they are beneath you.
Level One - 8%
Level Two - 5%
Levels Three to Five - 4%
Your rank determines the levels that will generate your commission.
Stars - Earn on Levels One to Three
Senior Starts - Earn on Levels One to Four
Executives - Earn on Levels One to Five
Let’s look at this example to help explain how this looks.
RANKS & STACKING
There are nine ranks in Young Living and the qualifications are as follows.
Star - 500 OGV
Senior Star - 2,000 OGV
Executive - 4,000 OGV with Two Legs at 1,000 OGV
Silver - 10,000 OGV with Two Legs at 4,000 OGV
Gold - 35,000 OGV with Three Legs at 6,000 OGV
Platinum - 100,000 OGV with Four Legs at 8,000 OGV
Diamond - 250,000 OGV with Five Legs at 15,000 OGV
Crown Diamond - 750,000 OGV with Six Legs at 25,000 OGV
Royal Crown Diamond - 1,500,000 OGV with Six Legs at 35,000 OGV
To get to the highest paid rank in Young Living which will earn you six figures a month of income… you only need six legs. Let’s talk about what this means and why you will benefit from putting your energy into building legs instead of building wide on your Level One. We call this stacking!
If you are the Enroller AND Sponsor of the new members you are bringing into Young Living, they will appear right beneath you on your Level One. The goal is for you to enroll eight to ten people this way and then start building deeper legs by assigning them a different Sponsor. Let’s see how this looks in the example below.
There are several benefits to stacking.
You reduce competition. The last thing you want is people at work or people in your family arguing over who gets who under them. So group people that know each other well together so they can work together instead of against one another by creating specific legs for family, church, work, book club, etc.
You still receive all the initial bonuses and only lose a little on the uni-level commissions. But… TRUST US. It’s worth it.
You will rank up faster. If you build really wide, it will take you much longer to build the strong legs you need for the rank of Executive and above. These are the ranks that start paying out much higher bonuses so you want to get there as soon as possible.
You will create residual income. As strong leaders start to rise up in each legs, they will grow your OGV without you consistently working them. This is powerful because you will shift from earning a paycheck to earning passive, residual income. You will be making money while you rest, spend time with your family and share to bring in new people.
We do not recommend placing new members deeper than your Level Three because of commission purposes so if you find yourself wanting to place deeper… reach out to your Enroller for some feedback!
WATCH COMPENSATION PLAN BASICS
Do you learn better by watching than by reading? Watch this eight minute video as Ashley Sharp briefly explains everything we have already reviewed here.
We recommend watching it several times if that is what it takes for it to click and to encourage you to launch off in fun, authentic and intentional ways! The compensation plan is powerful and once you know the basics… you will know how to use it fully to make more money and help those in your organization do the same!