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:
||Rs.4500 (with an early advantage offer)*
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:
*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:
paid out on
in Week n + 1
|Total miles in Week n+1
|Commission, Wk n+1
forward to Wk n + 2
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