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Saturday, May 22, 2010

Understanding the core business development concepts

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Developing Your Preferred Customer (PC) Base:
Our business is a very simple one - we share Juice PLUS+® with everyone and develop a base of “Preferred Customers”. NSA has developed the retail profit and commissions structure based on licensees achieving a customer base of 40 “Preferred Customers”. This is not a minimum nor maximum number but rather a modest number that has been set to give licensees a goal to aim for in establishing their business base. Once you have achieved this 40 PC base you have achieved a “Qualified Business” – at this point you are entitled to receive an additional 4% “Team Performance Bonus”. This is an additional 4% of the total business volume turnover achieved monthly by all licensees within your team who are at the 4% Direct level and above.

Developing Your Business Team (Optional):
You would understand that just as with any business, the more clients/customers you have the more volume turnover you have, and therefore the more profitable your business. Nothing new there. Well in our business we have a model which allows us to leverage our time and profit so that our business can continue to expand and grow without requiring 100% of our own effort. This is an exceptional model, as we all have existing businesses/work in existing jobs which are our core focus and require our time. Again, this is why NSA have built their retail profit and commissions structure based on a Preferred Customer base of just 40 customers. This is an achievable goal for anyone who is involved in developing the Juice PLUS+® business.

Of course, many continue to develop their PC base as indeed this is primarily what our business is about and over time a very substantial PC base will be achieved. What is recognised though, is that people have a “warm market” that they will initially share Juice PLUS+® with to build their base of 40 PC’s and over time, this “warm market” will diminish. Therefore the growth of the business will slow down. In understanding and recognising this fact, NSA have a system in place allowing you to grow your business volume by developing a team of people who just like you see value in the Juice PLUS+® products, have a passion for health and wellness, and are interested in developing a business of their own with Juice PLUS+®. By sharing the business opportunity with others who share your passions, you can continue to keep your business volume turnover growing, and indeed you are now achieving this volume growth without your own effort – i.e. leverage. This just makes good business sense.

The development of a business team is optional, however, for those who wish to achieve a very solid residual business income, this forms an important part of the business development strategy. NSA pay additional commissions and bonuses to licensees who develop a team and therefore it makes sense to at least understand the earnings opportunities that are available to you for doing so. I will explain very briefly these additional earnings for you below. The entire earnings model is in the licensee manual contained in the licensee briefcase you will be sent when you have faxed your licensee form to Head Office. I want you to have a good basic understanding of the opportunities available in relation to your sphere of influence i.e. those that you are associated with that would also be interested in developing business with Juice PLUS+®.

A Basic Look at the Earnings Opportunities:
For those who are building the business without a team:
Retail Profit
  • For all new PC’s you will be paid the retail profit of $39 (per box/4 month supply) on the Juice PLUS+® capsules.
  • This is paid to you in full in the month that you register the new PC regardless of whether the PC chooses to pay upfront in 1 single payment or in monthly instalments over the 4 months.
  • When the PC is shipped their 2nd box of Juice PLUS+ (and forever more while they remain a PC) this retail profit will be paid in full for all PC’s who originally paid upfront, and will be divided by 4 and paid over the 4 months of monthly instalments. This is excellent, as over time you will develop a continual rollover, residual income.
Business Development Commissions
As you develop your business additional earnings are paid to you to reward your efforts. The first of these additional earnings are % commissions payable to you on your PC volume. This is a % of the wholesale price of a box of Juice PLUS+® capsules which is $218. There are 2 methods to achieve each commission position – Express Track for those who wish to move quickly, and Cumulative for those who are happy to just amble along. I will outline the requirements of each for you.

Commission PositionExpress Track Method(time limited)Cumulative Method(over any amount of time)Total Earnings Per Box of Juice PLUS+® Capsules
“Direct” 4% (4% x $218 = $8.72)$1,000 volume - 5 PC’s in your 1st 30 days$4,000 volume – 20 PC’s$39 RP + $8.72 = $47.72
“Senior Direct” 9% (9% x $218 = $19.62)$4,000 volume – 20 PC’s over 2 consecutive months$8,000 volume – 40 PC’s$39 RP + $19.62 = $58.62
“Sales Coordinator” 14%* (14% x $218 = $30.52)$12,000 volume – 55 PC’s over 6 months$18,000 volume – 90 PC’s$39 RP + $30.52 = $69.52
*A business team structure requirement for Sales Coordinator – you must have personally sponsored 3 licensees who have achieved Direct 4%

Additional bonuses for those who are building a team:
Differential Commissions
This is an additional commission paid to you on the volume that is created by those in your business team. This is paid to you by NSA as a reward for taking the initiative to create more volume via developing a team as they understand that a little time is involved on your part to help new people get started. Note: Licensees with Team JP have a very clear and distinct advantage here as the Team JP University site allows you to easily teach, train and develop the skills in your new team members without much of your time at all.

Of course, monitoring your business teams progress is advised as building a strong relationship in your business team is important in any business. The majority of the learning though is completely automated via our platform and the learning available via the Virtual Office that is given to all new licensees.

The “Differential Commission” is simply a % commission paid which is the difference between the position you hold at any time, and the position held by your team members. For example, if you are at 9% and your team members are new and not yet at a commission position, you will be paid an additional 9% ($19.62) on each box of Juice PLUS+® that is moved via that team member. If you have a team member at 4%, you would be paid the difference between your 9% and their 4% i.e you would be paid 5% ($10.90) on each box of Juice PLUS+® that is moved by that team member.

The goal for the business developer is to get to the Sales Coordinator position as quickly as possible to maximise the earnings opportunity. As your business team develops, you will have Sales Coordinators developing in your business team. At this point both you and the new Sales Coordinator are at 14% and there is no longer a “Differential Commission” payable. This commission is really a teaching/training/development commission paid to you for the assistance you provide to your team members to help them achieve their business goals. Once you “break” a Sales Coordinator line in your business, NSA will pay you 2 additional bonuses as a reward now that you are no longer receiving the “Differential Commission” from that team member. These 2 bonues are described below:

Team Performance Bonus 4%
Once you have achieved a “Qualified Business” by developing your PC base of 40 you qualify for Team Performance Bonus. This is 4% of the entire business volume turnover created by anyone in your team who is at the Direct 4% level and above. In time, as your business develops this part of your business earnings far outweighs that which can be made in the retail profit and commissions payable on PC’s alone. So there is great incentive to develop a business team.

Promote Out Bonus 2%
Once you have achieved a “Qualified Business” and achieved Sales Coordinator 14% the goal is a simple one – to duplicate this through your business team and have others who are developing their business to the Sales Coordinator position. For each Sales Coordinator line that develops in your business team you will be paid an additional 2% of the entire business volume turnover created in that business line.

So there you go – in a nutshell these are really the “meat and potatoes” earnings opportunities available. There is 1 further bonus payable as you reach the Senior Earnings Position of Senior Sales Coordinator known as the Business Incentive Bonus (BIB). No need to go into detail about that at this time although if you are interested it is covered in your Virtual Franchise manual!

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