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Home :Smart Opportunity : How much you earn

The commission is calculated on the principle: “Higher the sales, more the commission”. Within this broad principle, the company has a progressive commission structure. The highest reward is required at the beginning of an Associate’s career, and as the business of the Associate increases, the fraction of sales paid as commission is progressively reduced, though the amount paid does increase due to the higher volume. Such a structure is beneficial to both associates and the company as it results in the highest sales. At high volume levels, the total sales of an associate depends significantly on the sales of downline associates. By sharing a larger portion of the available commission with the downline associates, the sponsoring associate stands to increase the overall sales volume of his/her downline.

Your secondary commission depends on the Smart Miles accrued by you, subject to the condition (Balancing Criteria) that the ratio of Smart Miles on your weaker side to those on the stronger side must be 1:2 or more. 1:2 is also written as ½ or 0.5; similarly 3:4 can be treated as 0.75, which is higher than 0.5. Therefore a ratio of 3:4 is considered ‘more’ than 1:2; on the other hand, a ratio of 1:3 is treated as ‘less’ than 1:2.

What happens if my sales are not balanced, if the ratio is less than 1:2?

In case, miles on one side are more than double the miles on the weaker side, then the number of eligible miles on the stronger side are limited to double the miles on weaker side. For instance, if you have 4800 miles on the left side, and 1200 miles on the right side, the ratio is 1:4 which is less than 1:2. So, on the stronger side, left in this case, the number of eligible miles would be limited to 2400 Smart Miles, double the 1200 Smart Miles on the weaker side. More examples make this point clear.

For the first 4,500 eligible Smart Miles, currently the commission is paid as follows:

First 900 miles Rs.4500 (with an early advantage offer)*
Second 900 miles Rs. 4500
Third 900 miles Rs. 4500
Fourth 900 miles Rs. 4500
Fifth 900 miles Rs. 4500

Please note that the above are the amounts what you are eligible for. The Government of India stipulates certain statutory deductions on commission payments, which will be deducted by the company before making a cheque in your favour.

*Early advantage offer entitles breaking up the first 900 miles in to three slabs of 300 miles each. Please check the website of the company or contact your sponsor to find out if this offer is currently on. Commission payable under the Early Advantage offer is as follows:

First 300 miles Rs. 1500
Second 300 miles Rs. 1500
Third 300 miles Rs. 1500

*Early Advantage offer is at the discretion of the company

What happens if I have 1200 miles?

Since commission is paid in ‘steps’ of 900 miles, those miles for which commission was not paid will be carried forward to the next week. This is done for each leg separately. Suppose that you have 600 miles on each side. For the given week, 450 miles from each leg are considered and the balance 150 miles on each leg are carried forward in the next week. Further suppose that you get sales of 200 in the left leg, and 800 in the right leg in the next week. The total eligible miles, and those further carried forward, would be:

  Left Right Total Eligible
Week n 600 600 1200 1200
Commission paid out on 450 450 900 900
Carried forward 150 150 300 -
Miles in Week n + 1 200 800 1000 -
Total miles in Week n+1 350 950 1300 1300
Commission, Wk n+1 300 600 900 900
Carried forward to Wk n + 2 50 350 400 -

After the first 4500 miles, the secondary commission earned by you decreases according to the Step-Rate for the given week. Step-Rate is the commission paid for each ‘Step’ of 900 sales. This varies from week to week, and is set such that the overall commission paid by the company is capped at Rs. 40.25 per unique Smart Mile of sales. This cap, is reviewed from time to time.

Since the variation in the step rate makes planning of your work and income difficult, the company has a Motivational Step Rate for those with limited business. For those associates who have accumulated 4500 eligible miles, but whose weekly eligible miles are only of one step, that is, 900 Smart Miles, commission is calculated at the Motivational Step Rate. In case your sales increase to 2 steps (1800 miles), your commission would be calculated as per the actual Step Rate. After receiving commission at actual Step Rate for a few weeks, if your sales again drop down to the single step in any given week, commission for the week is calculated at the Motivational Step Rate. Thus, the Step Rate applicable after accumulating 4500 eligible miles depends on the number of steps in a given week.

Currently, as on June 1st ,2005, the Motivational Step Rate is Rs. 3,258/-, which is as usual paid after statutory deductions. The difference between the Motivational Step Rate and the actual Step Rate is funded by the top 15 earners and the company. Please note that this is reviewed every quarter. This is likely

First 900 Smart Miles = Rs.4500     (*Early Advantage offer)
Second 900 Smart Miles = Rs.4500
Third 900 Smart Miles = Rs.4500
Fourth 900 Smart Miles = Rs.4500
Fifth 900 Smart Miles = Rs.4500
Thereafter for every 900 Smart Miles an associate gets Rs.3000 approx. Subject to 1:2 or
2:1 balancing criteria (ie one each on either side)
For the associates who are receiving commissions for more than 900 miles in a week the commissions depend on the overall volume and the type of products sold.

For more details regarding this contact your crown director. How commission is calculated?
* Early advantage offer  
For the first 300 Smart Miles
= Rs.1500
For the next 300 Smart Value Miles = Rs.1500
For the next 300 Smart Value Miles = Rs.1500

Conditions for Primary Commission

1. Primary commission is disbursed along with Secondary Commission.
2. In case an Associate receives no Secondary commission, Primary commission is accumulated to Rs. 1,000/- and then disbursed. For all commission disbursements, a processing fees of Rs. 100/- per disbursement would be charged.
3. TDS as applicable would be deducted on all commissions.
4. The cap on commissions in a week (that is, maximum commission payable) is applicable on Secondary Commission only. Primary Commission at actual will be added to the cap limit.


Disclaimer: Please be aware that the examples and income figures presented are indicative. Some Associates will do better; others will not do as well. As such, these figures should not be considered representations, guarantees or projections of gross or net earnings as actual results will depend on induvidual effort and activities.