A NAPKIN COMP PLAN EXAMPLE:

April 4th, 2016

A NAPKIN COMP PLAN EXAMPLE:

If you were going to take a trip across the country, you could choose from any one of a variety of transportation methods. You could drive a car.
You could take a train or a bus. You could book a flight. It may take awhile but you could even walk. The goal is to get to your destination, but there
are many vehicles that could get you there.

The same holds true with showing your business. Sometimes you just need to be flexible based on the circumstances that you find yourself in.
Sometimes you are showing the business to someone that is in your town. Sometimes they live in another state. Sometimes you have 30 minutes with them . . . sometimes only 5 (although I recommend getting a commitment for 30 minutes). Sometimes you have access to the internet and sometimes you don’t. As an entrepreneur, you’ll need to sometimes think on your feet and come up with the best possible option for showing the business.

Let’s say your desired destination is to show the business to a new potential customer or distributor. You have built up some rapport and told them how and why you got involved in the business. You have demo’d the app (you put a selfie on a card and sent it to them with a nice note and some brownies and they watched you do it!). You have gone over the options including the packages with them. Now it comes time to show the money and they tell you they want to see how we get paid. The internet is being flakey so you can’t show a video and you forgot your mobile pocket presentation. Remember you have already demo’d the app and gone over the subscription and the packages.

At this point you need to think fast! So you grab couple of cocktail napkins from the table you are both sitting at and pull out your pen. At the top you write,
PACKAGES. Then right below that you put PERSONAL BUNDLE $195 – $70 comm MARKETING BUNDLE $395 – $140 comm BUSINESS BUNDLE $795 – $280 Comm
Then you write SUBSCRIPTIONS AND POINTS 20% and explain that they make 20% of all points purchased including subscription points.

Then you go to a second cocktail napkin.

Here is where we are going to give a very simple comp plan example.

I start by asking, “HOW MANY FB FRIENDS DO YOU HAVE?” Then I have them google on their phone, “Average # of FB Friends” and
have them tell me what the average # of FB friends a person has. The # is approximately 330. WRITE THE NUMBER 300 AT THE TOP
OF THE NAPKIN.
I tell them that we have a very simple 2 step texting strategy where we can private inbox people with 2 simple texts that work.

I show them the texts.

TEXT #1: ________, I want to set up a time to show you something really cool that I think has big potential.
(If they ask, “What is it?” send TEXT #2)

TEXT #2: It’s a new technology I need to show you on your computer or on your phone. When can I catch you uninterrupted
for 30 minutes so I can show you?

(This is not spam. You are personally inviting people to take a look one by one)

And I ask them this important question . . .

If we sent these texts to 300 people and showed them what I have shown you, how many of the 300 do you think would do this?

They will usually say ’10’.

I then say . . . “Let’s use 5).

So then NUMBER YOUR NAPKIN DOWN THE SIDE FROM 1-7 REPRESENTING THE 7 LEVELS.

WRITE ‘5’ NEXT TO LEVEL ONE.

And then say, “Now each person has an average of 300 fb friends so let’s assume each of the five also have 300 and that
5 of the 300 that receive our texts get started.” Write 25 on level 2. Then write 125 on level 3. Let’s carry this down through 7 levels.
Write 625 on level 4 and 3,125 on level 5. Then write 15,625 on level 6 and 78,125 on level 7.

At this point I say, “If we add all of these distributors up, we come up with about 100,000 distributors. Just to be real conservative,
let’s just assume that 90% of this doesn’t work out. DRAW A LINE UNDERNEATH THE 100,000 TOTAL AND WRITE 10,000 DIST

Then I write under the 10,000 x3 to represent 3 customers per distributor. So it looks like this:

300 FB FRIENDS

1 – 5
2 – 25
3 – 125
4 – 625
5 – 3125
6 – 15625
7 – 78125

100,000 (CROSS THIS OUT!)

10,000 (10% OF 100,000)
X3 CUSTOMERS
30,000 CUSTOMERS

So the total distributor (10,000) and customer (30,000) count
is 40,000 users (write this)
I now tell them that most people do the $39/mo subscription so they can lock in the
lowest retail price but to be ultra conservative let’s say the average customer spends
$10 a month on cards a gifts.

Underneath the 40,000 users , write $10/mo

The total volume produced by the 40,000 users spending
$10 a month is $400,000/mo.

Our residuals range from 2% (lowest amount we pay) to 25% (Highest amount we pay).
Let’s use 2%. Tell them this.

Ask them, “How much is 2% of $400,000?”

When they say $8000/mo

Tell them . . . this is a residual check that comes in month after month, year after year.
We are assuming that 5 of each persons 300 FB friends get involved and that
only 10% of that actually happens. We are also using the lowest percentage that SendOutCards
pays out (2%). You can run your own numbers but this is just an example.

This is a quick and easy way to show someone how the upfront commissions and residuals work.
If you want to sketch something out, this is just an example. If you don’t have a mobile pocket presentation
handy or if your internet is giving you troubles. you can try this.

I wanted to remind you that I built my SendOutCards business to 40,000 distributors without ever talking about
the compensation. I built it solely on the power of our product and the excitement of our distributors wanting to share
it with others. The compensation was the bi-product of doing this. The comp plan was available to learn about
on the DVD, but I didn’t teach it or talk about it in my presentations. Ever. And we still grew!

We have so many great tools today to show the program and the money. And they work.

I was having a conversation with Kody last week and he suggested that he believes are packages
are strong enough now that we may not even need to show the money AND PEOPLE WILL STILL SIGN
UP FOR A PACKAGE AND FOR THE DISTRIBUTOR OPTION. I tend to agree with him. But they might
get even more excited if we show them how they can make some money.

Follow the steps of the APA (Ask-Present-Ask) to make sure all of your bases are covered. When you get to
“Show the Money” you can use this as an option to explain how we get paid.

Don’t ever let an obstacle get in the way of what you are trying to do. Be an entrepreneur. Know your outcome
and do the best you can. For example, let’s say you get half way through your presentation and the person gets a phone
call with something that has to be taken care of right away. But they tell you they are very interested. What will you do?
If they are truly interested they will follow through when you reconnect with them. I probably would send them a video or
audio from www.thecoolbuzz.com and ask them to listen to it. Or I’ll invite them to the conference call on Monday night and three
way them in. Keep in mind they have a card and a gift that will arrive in the next few days. The follow up is in place!

Now you have a very simple way to show the money with just a pen and a couple of cocktail napkins. Nothing can stop you!

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