The Shaklee Compensation Plan
“The best way to predict the future, is to create it.”
– Dr. Forrest C. Shaklee
Creating the future:
It All Starts with Membership:
When you become a Member you purchase all of Shaklee’s products at a discount of 15% off the Retail Prices.
When you use Shaklee products instead of what you were buying at the store, and you get 6 others to do the same…
You get a commission check that covers the cost of your product, so your products are actually FREE.
When those 6 do the same as you did, THEY get their products for FREE, and you get a check for $1200.
If this continues on two more times, you will be earning in excess of $10,000 per month.
HOW THIS WORKS:
You switch brands and use 100 points of Shaklee products a month.
Actual Member cost is $19.99 for Discounted Nutritional and Personal Care products.
You find 6 to do the same.
You = 100 Points | 6 others = 600 | PointsTotal = 700 Points
Everyone purchases at the Member Price, but since you qualify for a commission check (which means you have a group purchase volume (GPV) of over 250 points, of which at least 100 are your own) you are entitled to get a refund of the difference between the Member Price and the Distributor Price, which is about 17% of the point value of most products. You will have been officially promoted to Distributor and DN Pricing (17%)
You also qualify for a bonus based on the total point volume of your group, which starts at 4% and continues up to 34%, depending on the total point volume of your group.
700 points earns you 17% a price differential and an 8% bonus, for a total commission check of 25%, or $175.
That more than covers the cost of your own products, so they are actually free to you.
If each of your 6 does the same as you did, they will each get checks of $175. What do you get? Since your total point volume is now 4,300 (each of your 6 find 6 each = 36, plus the original 6, plus you (1), which totals 43 people who have joined Shaklee) you receive a commission check (including price differential and bonus) of 53%, or $2,279. Since Shaklee is paying your original 6 for what they produced ($175 commission each, or a total of 6 times $175, or $1,050), your check from Shaklee is the difference between what you earned and what Shaklee paid out to your Distributors. Your check is $1,229, just for using the products yourself and sharing the concept with 6 others.
Shaklee also pays a Leadership Bonus of 7% to 3% for up to 4 generations of Business Leaders in your downline organization.
As a group gets to 2000 points a month in purchases, they become a Business Leader.
If the “Switching Brands” concept, outlined above, continues two more times, you will be earning in excess of $10,000 per month, your original 6 will be earning over $2,000 a month, 36 will be earning $1,200 per month, and 216 will be getting their products FREE. At that point 1,555 people will be using Shaklee products because of what YOU started, and you will have enabled 42 people to become Business Leaders and they will each be earning a nice part-timeincome from home. Actual results may, and probably will, vary from this optimal example.
The Shaklee Compensation Plan offers you the ability to earn in three different ways:
- Price Differentials
- Volume Bonuses and
- Leadership Bonuses (Overrides)
This is the money you earn from buying the products at one price and reselling them at another price. As a Shaklee Member, you buy at MN (Member Net) price and save 15% off the suggested retail price (SRP=suggested retail price). So if you buy products and sell them at SRP you make an instant 15% profit. As your sales increase, you receive additional discounts as well as a monthly bonus check.
Volume Bonus: You earn volume bonuses from 4% to 34% on the PV of your orders and orders from those in your personal group. You may also earn an additional percentage on the volume of Distributors in your personal group who qualified for a bonus check that month. The Volume Bonuses along with any price differentials are paid in your Shaklee bonus check on the 15th of the following month.
1000PV 12% *Maximum volume bonus % you can earn as a non-Director
2000PV 16% * Director Maintenance level
Leadership Bonus: People in Shaklee who make well into 6-figures a year are those who have built an organization by teaching other people to become a Director and then teaching those Directors in turn to find, develop and teach others. You earn 7% on each 1st level Director business in your downline and 6%-3% on each Director business you develop up to four Director levels deep.
Each Shaklee Member level has a different level of pricing:
SRP – Suggested Retail Price
MN – Member Price (15% off Retail)
DN – Business Leader Pricing (26.7% off SRP)
PV – Point Value is the basis for measuring qualifications and for calculating bonuses in the Shaklee Compensation Plan. There is a Point Value associated with every Shaklee product. On average $100 = 75 Point Value.