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Young Living Compensation Plan

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Young Living Compensation Plan

  1. 1. + Young Living Compensation Plan An introduction to the Business side of Young Living and the compensation plan. Instructor: Ashley Boyd Member ID: 1270543
  2. 2. + My story  Loved the products and began sharing with friends and family immediately.  Used YL for almost a year before teaching a class or signing anyone up.  I had 20 people under me before I was willing to admit that I had a business on my hands!
  3. 3. + Why I love Young Living  No selling, just education.  No pressure.  No keeping track of orders or products for others.  It is a lifestyle!!
  4. 4. + How Network Marketing Works Traditional Business Structure Also pays for advertising and marketing
  5. 5. + Network Marketing Business Structure Young Living pays us to cut the middle man, advertise and market their products, and get them out to customers.
  6. 6. + Compensation Plan Leg 1 Leg 2 Leg 3 Leg 4 Level 1 Level 2 Ashley Stacey LauraLe’Ann
  7. 7. + Definitions  PV (Personal Volume) The total monthly volume of your personal orders  OGV (Organization Group Volume) The monthly volume of your entire organization  PGV (Personal Group Volume) The monthly volume in an organization, excluding any Silver or higher rank volume and any qualifying leg(s) volume.  Leg x OGV The number of Legs and the amount of monthly OGV required for each leg  Sponsor The person who is directly above you in your upline.  Enroller The person who enrolls the new person.  Stacking Enrolling someone under a person in your downline.  Generation Everyone in your downline NOT INCLUDING Silvers and their downline. 2nd Generation includes the first level of Silvers in your downline.
  8. 8. + Leg 1 Leg 2 Leg 3 Leg 4 Level 1 Level 2 Ashley Stacey LisaShanna Carrie Level 3 Team: 13 OGV: 2,378 Team: 5 OGV: 741 Team: 3 OGV: 466 Team: 9 OGV: 1,469 To Achieve Executive: OGV: 4,000 2 Legs with 1,000 OGV We BLEW it away! OGV: 6,053! Kim Le’Ann
  9. 9. + Ways to Earn Money  Commission – Must have 100 PV to qualify for commissions.  Rising Star Bonus – Must have 100 PV in an ER Order  Starter Kit Bonus – Must have 50 PV  Fast Start Bonus – Must have 50 PV  Retail Sales – No requirement
  10. 10. + Commissions
  11. 11. +
  12. 12. + Generational Commissions
  13. 13. + Personal Generation Generation 2 Generation 3 Generational Commissions
  14. 14. + Current Share Average $35-50 Rising Star Bonus
  15. 15. + Start Living Kit Bonus BasicStarter Kit $40 • EssentialOils UsersGuide • 5mlbottle of Stress Awayoil • RollerFilament • 2 – LavenderSamplers • 2 – Peppermint Samplers • 2 – Peace & Calming Samplers • 2 – LemonSamplers • 2 – ThievesSamplers • 2 - NingxiaRed2 oz. • Variousdistributor resources BasicPlus $75 • BasicStarterKit contents • Home Diffuser • BasicStarterKit contents • Home Diffuser • Everyday OilsKit - 5 ml Lavender - 5 ml Frankincense - 5mlPeppermint - 5mlThieves - 5mlPanaway - 5mlLemon - 5mlPeace& Calming - 5mlValor Premium $150 New Kit options available July 15th!
  16. 16. + Fast Start Bonus
  17. 17. + Retail Sales  24% automatic earnings  No benefit to customer
  18. 18. + The Possibilities

Hinweis der Redaktion

  • Welcome. Thank you for joining us. I’m going to talk about the basics of understanding Young Living from a business perspective... And what has worked for me in growing my business. This is definitely not the ONLY way to work a Young Living business and make it successful, but I know it is working for me and it’s been ridiculously easy!
  • I’ve always been interested in natural health and nutrition. I loved the oils as soon as I started using them in October of 2011... And I immediately began sharing them with friends and family. I didn’t teach my first class until August of 2012... And it was VERY reluctantly. I didn’t feel that I knew enough to teach a class. Tell story. That friend signed up. Then I had friends in my area that wanted me to do one... So I did two more classes that fall... And had several more people sign up. It continued to just grow and explode, and I think it was March when I had about 20 people on my team when I finally admitted that it was a business! I started to take some of these steps laid out here to really treat it as a business and it has continued to explode and grow exponentially.
  • I have been a part of network marketing companies before... Certain cosmetic groups, if you know what I mean... I remember loving the products and trying to hold 12 “parties” in one month... Seriously! I made a bit of money at these parties when people bought products... But it took so much time away from my family... And keeping up with products was a hassle. After about six months of this, I only had 2 people under me... And I don’t think I ever made more than $100 a month. My experience was that you had to build “customers”... And maybe a few people would sign up to join the “business” side of it all. I know very few people who are SO devoted to their cosmetic brand that they won’t try anything else... So retaining customers was hard, even when the products were good (it’s just easier to get it yourself!)

    I have never sold ONE product from Young Living. I do order for my friends, but I charge them what I pay! I don’t do “parties,” I hold classes.... This takes the pressure off of scheduling! Usually 3-6 per class... And I’ve only taught about 7 intro classes! Taking and educational approach takes the pressure off. You put the power of information into the hands of the other person, and then they get to choose what to do with it. It is not your job to CONVINCE them to do anything. You just share what you know and your experiences... And the oils will convince them!! Once people get the information... And they see that they can get a membership for only $40... They usually do it! Then they have the power to order for themselves. The lower cost of enrollment makes it beneficial for everyone to join... Not just those who want to do this as a business. Once people sign up and start ordering... It just becomes a lifestyle. I can’t imagine EVER not using Young Living Essential oils. I KNOW how well they work and the benefits to my family... And I have the power to order when I run out of something. So there will never be an issue of me going back to over the counter and prescription drugs.

  • In case the idea of network marketing is completely new to you... I just wanted to take a moment to explain WHY Young Living pays distributors. A business in a traditional marketing structure is going to have to pay a Manufacturer, Distributor, Wholesaler, Retailer, and pay for Marketing and Advertising. There are a lot of steps between the Manufacturer and consumer. This makes the process more expensive... And those costs are figured into the products.
  • Network Marketing works to cut the middle men by using Independent Distributors to market the products to their network of friends and family. Because Young Living makes it worth it for the customers to sign up as wholesale members... They are able to get the products directly from the manufacturer! Young Living pays the Distributors bonuses and commissions using the money they save on advertising wholesale distributors, and retailers. Basically we are all those things rolled into one package! I try to remember all of this when those commission checks come in... And I don’t feel like I’ve done much of anything to earn them! So let me show you what I HAVE done.
  • Hopefully this will help you to visualize what the structure looks like before we move on to the compensation plan. This is me at the top... Aren’t I cute? As I introduced people to Young Living... A lot of them chose to become wholesale members and sign up under me. These are the people in green. Each of these people are a leg. Together they are my Level 1 distributors. Now, Stacey, in green introduces some of her friends to oils... And they sign up under her. They are a part of my Leg 2, with Stacey... But they are my Level 2 distributors. Make sense? In this graphic, Stacey has 2 legs... Le’Ann and Laura... And they are both her Level 1 distributors.
  • Okay... Now let’s go over some quick definitions. There are three different kinds of Volume. The first one is easy. It is your Personal volume... Whatever YOU personally order that month is your Personal Volume. Each month they offer free product promotions based on a orders over a certain PV. Plus... Your PV amount is critical to earning your commissions... Which I will go over in a second.

    Organization Group Volume is the monthly volume of EVERYONE in your downline... No matter how many levels down they are. If they are under you somewhere... What they order goes into your OGV.

    Personal Group Volume gets a little confusing. This is the monthly volume of your organization excluding anyone in your downline who is a Siver or higher rank. Most of you don’t have to worry about this right now... But as you grow, and your “legs” begin moving up in rank, you will need to keep a close eye on your PGV.

    Leg X OGV indicates the number of legs and the OGV of each of those legs required for achieving a certain rank. You’ll see this more clearly on the next page. Sponsor... Is.... Enroller is....

    You would think that these would always be the same person, but that isn’t necessarily the case. There are times when it may be beneficial for you to “stack” someone under a person already in your downline. Let me show you what I mean.

  • Okay, back to our little graphic here. Now this month, to achieve the rank of Executive... I had to have an OGV of 4,000 with two legs at 1,000 each. Now I didn’t put my entire team and downline on here... Because we wouldn’t fit! Instead, I’ve represented my top 4 legs. Leg 1 is Shanna’s team... And if you look directly below her little person to the green box, we can see that she has a team of 5 people, and her OGV was 741. Stacey is my Second Leg, and her team of 13 had an OGV of 2,378. Carrie and her team of 3 had a OGV of 466, and Lisa, with a team of 9 had a volume of 1,469. Now I did say that these ladies are only a representation... If you add up these 4 legs, their combined volume is just over 5,000... but you can see at the top that my OGV was actually just over 6,000! So there is an extra 1,000 that comes from the other 6 legs I have that ordered this month. I had 5 people in my group that didn’t order at all. I tell you that so that you can see that it is perfectly okay to have people in your downline that only order every once in a while... And it’s great to have those that share with others. You need BOTH to be successful. As you can see, Stacey and Lisa each had over 1,000 in their OGV... And since my OGV was WELL over the required 4,000... I made it to executive! I could NOT have done this on my own! I also want to explain stacking a little more and how it may be beneficial or detrimental to your growth. Let’s say the blue lady (we’ll call her Kim) is a friend of Stacey’s who wants to sign up.... But Stacey’s sister Le’Ann is working hard to build a team. Stacey may decide to put Kim under Le’Ann to help build up a strong leg there... Because Stacey is eying Executive. She’s preparing for the future. Stacey will remain the Enroller, because there are bonuses that come with that... But Le’Ann is the sponsor. This is one instance where the enroller and sponsor aren’t the same person. This also explains how stacking can benefit your growth. Now lets talk a bit about different ways to earn money.
  • Now... You may have seen this before, but hopefully it makes more sense to you now. You can see here how much PV, and OGV you have to have in order to move up in Rank. You can see that Executive is the first Rank level that requires you to have a certain OGV for 2 legs. This chart only shows your commissions... And you can see that if you place a 50 PV order a month... You will not earn commission. You have to earn 100 PV each month to get commissions for that month. Now the great news is... That you never have to order MORE than 100 PV to get commissions... Even all the way up to the highest rank “Royal Crown Diamond.” Once you have 100 PV you are eligible for 8% commissions on all of your level one people, and 5% on Level two. Star and Senior Star take into consideration your OGV in order to move up in rank. You notice that each time you move up in rank... Your commission ability grows deeper. This is where I will encourage you to grow WIDE before you grow deep. If you grow deep too quickly, you may miss out on commission opportunities. So don’t start stacking people right away to build up those strong legs. Give it some time to grow naturally. On my team... We have JUST started growing our Level 3 this month. I do not have any level 4 or 5 distributors... But if I did, I could earn commissions on them!
  • Now let’s look at where my team is headed. We’re working our way toward Silver by September. Young Living has a program called Silver in Six. If you make Silver 6 months after making Executive you earn a free Aroma Complete kit! That’s the huge one that has almost all the oils! That is my goal! As you can see, I have to have an OGV of 10 K and two legs at 4,000 OGV each. I started last month coaching Stacey and Lisa to look ahead to Executive. I started guiding them toward executive before I even hit it! That’s because I knew I didn’t want to stay there! So you can see that working with your team and coaching your downline is essential to achieving different ranks!
    I think the most exciting thing about this is that my business grows by helping other people’s businesses grow! My second goal is to achieve Gold by this time next year. As you can see, at Gold you have to add another strong leg... And at Platinum you have to have another strong leg. So I can’t just focus on two legs and quit. I have started working with a core group of about 5 ladies who are interested in building their businesses... These are the legs I plan to build on! Now, one last thing for commissions. As you can see the PV requirement is the same throughout these levels. Earlier I mentioned Personal Group Volume or PGV. This is where this becomes important. Remember your personal group volume is your group volume MINUS the OGV of anyone in your downline who is a silver or higher. So if I make Silver... And then Stacey Makes silver... Her 10,000 OGV are no longer a part of my PGV. It is ALWAYS a part of my OGV... But PGV are those in your downline who are not to the business building stage, yet.... This is your Personal Group... And you have to ALWAYS have 1,000 in your Personal Group Volume. If you begin stacking too much or two quickly... It can really hurt you when you get to this level... Because you won’t have enough people in your Personal Group who aren’t business builders to maintain that 1,000.

  • Okay, we’re moving on to the Rising Start Team Bonus. This is new this year with the new compensation plan. It is only paid to those who are Executive or below... So all of you can start earning this Rising Star bonus right away. In order to be eligible, you have to have a 100 PV ER order in the qualifying month. As you can see... It goes by the ER orders of your legs. So in order to be eligible for 1 share, you have to have 3 legs with an ER order of 100PV... And then an OGV of 300 for each of those legs. The company really rewards us for encouraging our downlines to get in on the ER program.
    It also encourages you to get several strong legs going as you move toward Silver and the business building ranks.
    I, personally... Just earned one share for the first time, last month... So for me, it hasn’t been easy to get this bonus.... And you don’t have to do a great job at getting all these bonuses to move up in the company.
    The shares build on one another... So in order to get the 2 shares... You have to have the 3 legs in yellow AND 2 legs with 100 PV ER orders and OGV of 500 in red. Then, of course for the Final 3 shares you have to qualify for the first yellow share and the orange 2 shares and then have 2 MORE legs at 100 PV ER and 1,000 OGV. I have found that my legs are growing so quickly that it’s been hard to keep the first level base!

    What a share is....

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