When the LIFE company was established, one of the primary goals of its founders was to accomplish something in the area of compensation that hadn’t been done before. The heart behind this was to offer financial rewards that would truly be based upon performance. But there was more. It was also desired to put a heavy emphasis on revenue sharing with the field – this is “corporate speak” for not letting the company keep most of the profits. While many (but certainly not all!) pay plans appear to be at least somewhat fair in terms of how the money is split amongst participants in the field, what often is NOT fair is how much money finds it way back to the corporation. The result is a subtle but real conflict of interest between the company and its field operators. Therefore, right off the bat, LIFE designed its financial plan in such a way that most of its profits flow to the people who are actually doing the work to make the revenue happen in the first place. Right out of the gate, the percentage of gross revenue paid back to the field in commissions was structured to be in the (estimated) 65+% range. This, as far as we know, is an industry high. Then, after just two months in business, LIFE announced its One Time Cash Award program, which put even more money into the field. It is still too soon to know the exact figures (as some of the qualification periods for these rewards don’t end until the end of 2012), but we believe this will put the percentage at something approaching 70%.
How can this be done? How can a group of founders establish a company on such lean terms? The answer comes from the strong belief that the best leadership for this type of company can be provided by those who are actually doing what they are teaching and expecting others to do. THIS, as far as we know, has never been done before: corporate founders who deliberately establish the financial incentives in such a way as to keep themselves in the game, out in the trenches, and thereby providing the means by which most of the profits flow to the field.
And now there’s more. On April 27th, at the Spring Leadership Convention in Columbus, Ohio, LIFE will announce an additional incentive program representing even more new money being put into the compensation program. This will be a reward package that will be attractive to new participants and attainable early in their experience with the business – in other words, something they can qualify for in the near-term, not “someday.”
All of this, in the LIFE compensation plan, is in addition to LIFE’s groundbreaking position between the four industries of Personal Development, Home-based Businesses, Life coaching, and Community building, and takes advantage of LIFE’s high-value position in the market of personal development materials, wherein its products are among the lowest priced in the marketplace (in some cases hundreds of percent cheaper than its competition). And, don’t forget, all of LIFE’s products are backed with a 30 day money back guarantee.
When LIFE founder Orrin Woodward says, “We don’t promise easy, but we do promise worth it!” the LIFE founders have done their best to structure a compensation plan and reward system that shows his statement to be much more than mere rhetoric.
I hope this helps!