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May 27, 2004
WWG Parameters
By QBlog in
Someone claiming to be in World Wide Group sent me a document that seems to outline the "statistics" and "suggested responsibilities" of Quixtar IBOs in the WWG system. It was given to me without comment and without any accompanying documents. I'm assuming that it's an official WWG document but I really have no way of verifying its authenticity.
The document shows Business Statistics, Annual Profit and Suggested Responsibilites, each in a separate column. The information begins with the New IBO and extends all the way up to Diamond. What is curious to me is that motivational data is figured into the "business statistics" column. For instance, the Diamond level includes data for the number of Legs Earning Bonus Checks and PV Outside Platinum Legs as well as the number of Legs Attending Functions and Total Standing Order. Correct me if I'm wrong here, but doesn't that seem to indicate that participation in the "tools" is sort of a requirement for each level? Maybe I'm misreading this since it is without context. But it's weird that the motivational stuff isn't ONLY in the "Suggested Responsibilities" column. Can anyone explain why its set up this way?
Anyway, this is at least an interesting document, even if it's without the proper context. It does clearly demonstrate the annual profit for each level. I didn't realize that Platinums only earned $35-50,000 a year. For some reason I thought the Platinum level was more than that but I haven't really been paying attention to all the levels and stuff. Anyway, it's good stuff.
If you'd like to see a large copy of the document I've made two versions available. There is a smaller version for people with low res monitors and a larger version for folks who want the best. Both versions can be read but the larger version is much easier to read. Enjoy.
Comments
Yes, this is an official WWG document. The "parameters" are not requirements. The nine steps of CORE are implied as requirements. The "true north to diamond" parameters are taught to be the ideals for profitability and a strong, lasting business. In other words, as taught to me by my Diamond, my business statistics should fit within each suggested statistic range to have the best chance at being both profitable and long-lasting.
SO, I should be worried about the future of my platinumship if I have less than 30 Standing Order tapes or less than 40 people at the last major function. AND, I should focus my efforts on increasing these numbers to ensure the strength of my business. It is taught that PV follows "tool flow". So, if I want to be highly profitable, I should focus on getting people to signup on Standing Order tape and to attend major functions.
As far as the suggested resposibilities, my Diamond takes these suggestions very seriously. As a platinum, if I failed to have the one week's supply of tools on hand for my product pickup, if I back-ordered many "tool" items to my downline and a downline complained to my upline about these backorders, you'd better believe I'd be hearing about it and be told to use my next bonus checks to beef up my tool inventory. If I refused for various reasons including "I can't afford this", my upline would ask my downline to call in to them; I would be considered a flake/out of duplication; I would lose my "leadership" with my group, My upline would work around me.
This would also happen if I became flaky about attending the functions. All these "suggested resposibilities" are very strong suggestions.
I have witnessed this process first-hand. They did this to my upline sponsor/direct many years ago.
I used to read this document every day. Parameters are a good thing, but you will notice that most of the parameters in this doc. relate directly to function attendence and standing order tape flow, which have nothing to do with the profitability of anyone until they go Platinum.
The annual profit part is a JOKE.
These parameters lead to 90%+ of the folks involved with WWDB to lose money every month.
The purpose of the parameter is to help IBO build profitable and stable business, one that requalify every year.
The parameter is an indication of how strong your business is, the closer to the parameter, the more likely you will requalify each year at the pin level and the more likely you are to being profitable.
The complaints you hear a lot is that IBO qualify at a pin level (say silver) and never qualify again. The 2nd complaints you hear a lot is that IBO aren't profitable. The parameters were created to help IBO focus on what's important to address those 2 problems.
What WWG is trying to teach is that structure drive the profitability, not pin level.
For example, the parameters say that an IBO running 800 PV total with a parameter 8 width (personally sponsored IBO) of which 5 are earning bonus check (100+PV each) is a much stronger business than an IBO running 15,000 PV with a parameter of 2 width w/ 1 leg earning bonus check.
The IBO within the parameter is much more likely to requalify than one outside the parameter.
Whether or not standing order and function correlate to profitability, I'll leave that to your forum to discuss.
But the width & the bonus check parameter is most definitely important.
Take the ruby/platinum parameter. It's 10-20 width, of which 9-15 are earning bonus check.
In term of profitability, take a contrite example, the perfectly balanced business (number of business like this: zero, but it does serve as a good educational purpose). If you're at 7,500 PV (min platinum) with 9 leg earning bonus check, each the same volume of 833PV, your net monthly bonus check is $3,000. If you're at 7,500 PV with 15 leg earning bonus check, each at the same volume of 500 PV, your net bonus check is $3,652. That's annual $36k to $42k, not including the $10k Q12 bonus & $5k trip incentive.
Even if you have the more typical structure of one-legged business (1 @ 4,000 PV, 1 @ 2,500 PV, & 10 @ 100 PV), because you're paying out 9-15 bonus check, your gross annual income would still be $17k. Add in the Q12 bonus & trip and it's about $32k.
I don't know where Scott got his info that WWG report gross bonus. The SA-4400 clearly show net bonus check. The min gross bonus check for a platinum is 7,500 PV x 2.5 (PV/BV ratio ave) x 12 x 25%= $56k without Q12, ruby, depth, etc. The min gross bonus check for ruby is $121k. IF WWG used the gross bonus check, then the annual income would be $70k for platinum and $136k for ruby, and these are without the depth bonus and leadership bonus. Clearly, these figure are definitely not used in the annual income for platinum/ruby. The parameter is for gross annual profit (defined as personal retail markup plus bonus check received less bonus check paid out).
I don't know where MLMBlog get the info that 90%+ lose money for business falling within the parameters. Take the 4,000 PV parameters. If you're paying out 6-9 bonus check, you will gross $10k to $17k annually. Substract the "tools expense" of between $2k to $5k (which includes airfare & lodging for function) and you'll still have $8k to $15k in gross profit. The only expense left is travel for expanding your business (eg show the plan). Unless you're flying to Hawaii every weeks, I see it hard to spend $15k in traveling expense and see no business growth.
Jennifer,
Show me one schedule C tax return of any below that shows a profit in WWDB. 90% losing money is conservative.
Sorry should read...anyone below Platinum.
I have never seen proof of anyone making money below the Platinum level in Quixtar.
Jennifer, I must agree with MLMBlog on this one, and I'll phrase my agreement in the form of a challenge:
When you have a 4000 PV group, show us that there is over $1000 NET CASH left in your hand at the end of every month. I just don't think it's possible.
Think of it this way: assuming 4000 PV represents moving $8000 worth of product, Q would be an AWESOME business if we could all jump in and with no prior experience in business, earn a 12.5% NET PROFIT on our sales each month.
But . . . . I'll echo the others and say, "I've never seen ANYONE show proof of profitability below platinum." If you have, bring on the Schedule C's!! Our family's brief (4 months active) dance with Q resulted in several hundred dollars in expense and $7 in gross revenue. Count us in with the 90% who lost money, from Day One, by working Q.
Good Luck.
ChrisA, that's not a challenge. That's blowing hotair.
A challenge have a backbone and teeth. Something like -- "I'll give $10k to anyone that produce a Schedule C showing profitability for non-platinum."
As for "I haven't seen proof", that's just a fallacy. Middle Age European--"I haven't seen proof that the earth is round", "I haven't seen proof that one can sail westard to reach the East". Just a fallacy.
Work both way. Show proof that 90% loses money. Just because you can't doesn't mean that 90% doesn't lose money. Just mean you're blowing hotair.
You should know that most of WWDB is on standard fulfillment, and that means the downline bonuses flow through the paltinum's business, so their income will always be exxaggerated. They are reporting gross bonuses and not net bonuses.
"I didn't realize that Platinums only earned $35-50,000 a year", so you should have some clue they will earn less. Look at the numbers Quixtar releases. They are out there There was a post in "facts" from a LOS web site saying the average direct only earns about $16K. Older documentation had a Q12 platinum around $32K.
This page covers the platinum income data. http://www.amquix.info/quixtar_income.html
Posted by: scott | May 27, 2004 10:36 PM