Compensation Plan


  • Multiple Ways To earn Money
  • Online Business Building Tools
  • Teamwork Incentives
  • Leveraged Income
  • Exponential Growth
  • Low Risk, Big Potential
FOHOW’s unmatched Binary Compensation Plan gives you several ways to earn generous commissions every week in direct proportion to your ability to sell FOHOW’s products to your customers and build an organization of independent Associates who do the same.

1.     Retail Sales
Earn profit on the sale of FOHOW products when you collect the difference between wholesale and the retail price, which you set. Selling retail is one of the quickest ways to develop immediate income for your business while you start to build a long-term base of satisfied customers. You can sell however works best for you: by using our many sales aids, by sending customers to your personal Web Site, or by meeting customer’s in-person –either one-on-one in a party setting.

2.     Weekly Commissions
Earn up to 6 percent in commissions on the weekly Group Sales Volume (whole increments) accumulated in your organization of Associates and Preferred Customers who, like you, generate volume through product sales. Unlike other compensation plans, any extra volume (up to 10,000 points on each side) is carried forward to the following week. Because FOHOW products are consumable, you will have a regular stream of income coming in as people re-order. Use the Auto shop program to make earning money as easy as possible- FOHOW does all the work (taking orders, money, shipping, etc) and you get all the credit.

3.     Matching Bonus
Put your business on the fast track to success, first, by becoming active in the first several weeks of your business. Then, help new downline members duplicate your success, and you will be rewarded with up to a 10percent Matching Bonus for as many as twelve months (52 weeks) on the sales volume of Associates you enroll. This bonus, unique to FOHOW, is the best way to quickly boost income!

4.     Incentives
In the many fun and challenging contests and leadership incentives FOHOW offers throughout every year. Past rewards have included luxury travel to exotic destinations, such as Mongolia or Tibet; valuables prizes, including cars; and even thousands of dollars in extra cash! Not to mention the respect and recognition you receive as a top achiever or contest winner at FOHOW events.

5.     Global Leadership Bonus
Become a top leader who helps other succeed and you will be eligible to receive a share in the profits for your excellent sales performance. Every week, FOHOW reserves five percent of its global sales volume and divides it among qualifying diamond distributor and above to support building and training new leaders. As you advance beyond a diamond distributor, the number of shares you receive each week increases exponentially, helping you accumulate wealth quicker.

6.     Special Bonus Fund
As an additional incentive to strive for the heights of excellence, FOHOW offers another attractive bonus exclusively to each top income earners. Enrich your income with a share of five percent of FOHOW’s total global achievements, which we reserve for the fastest growing elite.  The more you earn and grow, the better your reward.
Do you dream of owning your own business? Working for yourself, working from home, being your own boss, determining your own hours…. It sounds great. But the costs and work required to start up a new business can be staggering. Even established business owners find themselves chained to high overhead costs while waiting for clients to come to them.

Direct Selling: Making Dreams Come True
Fortunately, there is a better option. Many have turned to direct selling to make their business dreams come true. Direct selling is the distribution method employed by FOHOW Health Sciences, and other network marketing companies, where products are sold person-to-person, away from a fixed retail location.

Direct Selling with FOHOW
  • Make a difference­ – Like working with people? Help improve the quality of people’s lives.
  • Be part of a team – Work together toward a common vision and a common goal. Meet new, lifelong friends.
  • Be your own boss – Flexible and self-directed workweek. You set your hours. You control your success.
  • Work at home – No commute or rush hour traffic. Live and work wherever you want; your business moves with you. Spend more time with your family.
  • Great income potential – You are paid what you’re worth. You decide how much you earn.
  • Immediate income – Earnings can come your first week with a realistic opportunity to earn an above-average income every week.
  • Lasting income – You can build a successful income-generating business that can last a lifetime.
  • Available for everyone – No previous experience necessary. Training is provided, allowing you to earn as you learn, regardless of age, sex, background, or education.
  • Low start-up costs – No franchise fees or royalties. Minimal overhead. No need to rent an office or buy expensive equipment.
  • No employees – No employee-related hassles or paperwork. You choose who you want to work with.
  • Significant potential tax benefits – Legally save thousands of dollars with home-based business deductions.
  • Freedom – Your life is on your schedule and based on your priorities. Work when and how much you want, part time or full time. 
 
 HOW TO ANALYZE COMPENSATION PLANS  

When choosing a company to join, the most important factor is not the type of compensation plan, but whether that plan is achieving important goals for distributors or not. Alfred White, senior management consultant at San Diego-based Hamilton LaRonde & Associates, Inc. recommends evaluating each company you are considering against the following characteristics of a good compensation plan:
1.     Is it easy to enter into the opportunity? You should only have to buy a modestly priced sales kit. (It’s just N5,600 in FOHOW and this earns you an instant value of N20,800)

2.     Are you rewarded primarily for direct sales, rather than for override commissions?

3.     Are you rewarded for personally sponsoring others?

4.     Are you rewarded for recruiting multiple levels?

5.     Is the focus on selling products to the end consumer, rather than to your downline?

6.     Are you rewarded for training and sponsoring downline?

7.     Are you rewarded for high personal volume?

8.     Are you rewarded for high group volume?

9.     Are you rewarded for maintaining a monthly volume?

10. Does the plan provide for recognition?

11. Does the plan offer nonmonetary rewards and incentives, such as trips or cars?

12. Is the plan’s monthly maintenance requirement reasonable – not so high that you can never achieve it, and thus never receive compensation? In fact, in Fohow, there is not compulsory monthly maintenance requirement!

Conversely, here are some compensation plan characteristics that should send you running in the opposite direction if you come across them:

1.     A plan that does nothing to discourage deadweight distributors and non-producers

2.     A plan that encourages inventory loading or large investments in products

3.     A plan that emphasizes gimmicks rather than product sales.

Four Major Types of Compensation Plans
There are many different varieties of compensation plans out there. They often have exotic names. But they tend to be variations on four major types of plans;
The Unilevel Plan

In this plan, recruits do not advance to positions above basic distributors, regardless of their performance. According to Alfred White, the principal advantage of the unilevel plan is that it’s easy for companies to administer and for distributors to explain to potential recruits.

Its chief disadvantage is its lack of flexibility in achieving some of the goals mentioned earlier. In addition, unilevel plans are limited in depth of levels of payment which inhibits deep sales organizations. Instead, front line width occurs which may cause sponsors to be “thin” in support for their downlines. Over time, most companies that start with unilevel plans adapt them to look more like a stairstep breakaway plan.

The Stairstep Breakaway Plan
This is the oldest and most common type of network marketing compensation plan. After meeting certain performance criteria, a distributor advances in rank and “break away” from his or her original sponsorship line. The original sponsor receives a percentage override on the sales of the entire breakaway organization. In a way, a stairstep breakaway plan is a unilevel plan with the flexibility to motivate distributors to perform and advance.

Its chief advantage, says White, is that it has a good track record, is easy to modify, is accepted by regulatory agencies, and is driven by volume and performance.

The primary disadvantage of this plan is that it is sometimes so complicated that it’s difficult to explain to new recruits. Another disadvantage is that if the company does not monitor its distributors, they tend to get involved in inventory loading. And sometimes, there is an unreasonably high ongoing monthly personal purchase volume requirement.

The Matrix Plan
This plan looks like a grid in which a distributor is limited to a certain number of recruits at each level. For example, in a 3-by-5 matrix, each level down to five can have only three downline distributors.

This type of plan is sometimes considered to be more gimmicky than others. Why? Because due to the width limitations, new recruits may find themselves placed underneath upline distributors who did not directly recruit them. In a three-wide matrix, for instance, the fourth distributor you personally sponsor would be placed under one of the first three distributors you personally sponsored (your first-level distributors).

This automatic filling of spots in the matrix can be attractive to novice distributors if they sign on with strong leaders who help fill their grids. Also, it works well in companies where most of the products are used by the distributors, rather than sold to outside consumers.

Matrix plans have been subjected to attacks by regulatory agencies because they sometimes look like “a game”. By and large, they have not had a successful record in the industry, and they foster non-producers, which makes the upline distributors resentful. Nevertheless, several major companies operate matrix plans. Only time will tell whether these plans are here to stay.

Binary Plan
The binary plan is the newest on the scene. In a binary plan, a distributor is allowed to occupy one or more “business centers,” each limited to two downline legs. Compensation is paid on group volume of the downline legs rather than a percentage of sales of multiple levels of distributors.

 In other words, payment is volume driven rather than level driven. Sales volume must be balanced in the two legs to be eligible for commissions, which are paid at designated points when target levels of group sales are achieved. The distributor may occupy multiple positions and may re-enter or loop below other two leg matrices in which he or she has been active. 

There is no depth limit on payment but each matrix has a finite amount that can be paid out, thus, necessitating involvement in multiple two leg matrices. Payment in binaries is often on a weekly basis.

Proponents of binaries cite several advantages. First, they like the weekly payout. Since it is a series of two leg matrices, it is simple to explain. Group cooperation is promoted because payout is on group volume and requires balancing of volume in each leg to be eligible for payout. Some call it more democratic because of the limitation on payout in each matrix, the unlimited depth of payout, and the allowance of looping or re-entry.

It seems the most misunderstood compensation plan in Network Marketing is – the Binary Plan. If operated properly, this plan is a classic example of a ‘people helping people’ program. We feel the Binary compensation system is the easiest system for anyone to build and develop. Here are some of the reasons we feel this way.

According to widely accepted statistics, the average distributor sponsors 2.7 people. Clearly, this fact alone has huge significance. In essence, it means the difference between success and failure for the majority of people who venture into this industry! In the Binary Plans, you just build 2 legs or teams as Binary means 2. If distributors can just bring in 2 and teach those to do the same, they can achieve success.

Another BIG advantage to the Binary Plan is the additional placements made by those who sponsor more than 2 distributors. After we’ve sponsored our first 2 distributors – all additional distributors we sponsor fall below our original 2 distributors – which in turn adds to their volume!

This generates a wonderful sense of excitement – which builds teamwork – which in turn feeds on itself as demonstrated by the incredible growth Binaries are known for.

A lot of other compensation plans require that you develop up to 5 or more team legs wide in order to earn from sales 5, 6 or 7 levels in depth. Most people would admit that building five teams requires significantly more work because you must splinter your focus, time, & energy among many teams rather than just two teams.

We know people in other plans who have worked like crazy to build their organisation only to see the big money just out of reach because they were limited in the levels of depth they can benefit from. With the binary, your volume is not limited to levels, so you are just as happy to place someone on your 100th level as you were your 1st level.

The Binary compensation plan is not Multi-Level Marketing. That’s because MLM plans usually pay based on a limited number of levels (typically 5-10). A Binary does not pay you on levels; it pays you on total sales volume of everyone in your two legs/team up to a predetermined cap set by the company. Levels don’t matter, only sales volume does.

In the Binary Plan, there is a fairer dispersion of income. Since successful upline distributors place new distributors in their downline, sales volume is distributed to entire lines of people. This means that the commissions being paid on volume end up being spread out more evenly among entire groups of distributors.

Another thing we love about Binaries is that all the sales volume that is generated through our organisation remains intact until we qualify to receive it. This is like money in the bank! This is a world different than every Multi-Level company I’m aware of which flushes that volume away at the end of each month.

We’ve worked a good variety of the ‘other plans’ and in our experience the Binary Plan allows people to work together in a much more synergistic manner; which pays off in numerous easy – including higher incomes for the greatest number of distributors.

 FOHOW’s Income-Producing Business Plan
 FOHOW’s Income-Producing Business Plan is revolutionizing how people create wealth.

The FOHOW Binary Compensation Plan is a binary system in which you build balanced left-side and right-side downline organizations for the purpose of selling FOHOW’s nutritional and personal care products. The weekly commissions you earn are based on the balanced Group Sales Volume (GSV) points accumulated in your left-side and right-side downline organizations. This is true leverage!

FOHOW Business Centers are designed to pay you weekly commissions on Sales Volume with no limit to the number of vertical levels from which you can earn your commissions. In addition, a FOHOW Business Center allows you to be paid on the Sales Volume created by your downline Associates and Preferred Customers.

Another powerful advantage of FOHOW’s program is that there are no monthly group volume and personal volume requirements (no compulsory monthly autoship). The income you receive from FOHOW will be in direct proportion to your ability to retail FOHOW’s products to your customers, as well as your ability to build an organization of associates who, like you, retail to their customers and build an organization of associates.

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