Breaking down the Advocare Compensation Plan
Advocare breaks down the compensation plan in five parts which are retail, wholesale commissions, overrides, leadership bonuses, and incentive pay period bonuses. Advocare has quite a complicated compensation plan because they want to compensate you for performance in as many ways as possible. I’m going to simplify these ways to make money in two categories.
1. Retail Sales AKA selling Advocare products yourself
You receive a 20% or 40% sales commission on Advocare products you sell. You get 20% by default and 40% once you become an advisor. We will get into how to become an advisor in another post, but all it takes is an upfront investment or hitting a sales quota consistently.
2. Recruiting distributors AKA finding a few good people to make retail sales and recruit
Wholesale commissions – This occurs when one of your distributors orders product at a percentage lower than your product percentage.
Overrides – This is a percentage of total sales of your distributors.
Leadership bonuses – Bonuses depending on your total sales volume of your distributors.
Incentive pay period bonuses – Bonuses depending on your total sales volume of your distributors in a pay period.
Advocare’s strategy was established on a stairway step design. This indicates that a leader stairway steps up a marketing chain by constructing wider and broader networks of distributors underneath them. They are paid on the job done in their down lines. When down line leaders get to a specific degree they take away from the group and offer their down line leadership and Advocare training that is independent of the original sponsor.
Various other advantages include unlimited specialist sign-ups on a leader’s top line and no limitation to the depth of each group. The downsides of the stair action design are that there is much less revenue upfront so a leader will certainly invest a significant amount of time developing a group before obtaining repayment on those down lines by damaging away from the leader.