How much commission does a pool salesman make?
WHAT ARE THE REQUIREMENTS FOR THIS POSITION? TO BE CONSIDERED FOR THIS POSITION, YOU ARE REQUIRED TO HAVE YOUR OWN RELIABLE VEHICLE, SMARTPHONE, AUTO INSURANCE, VALID DRIVER’S LICENSE, AND A SOCIAL SECURITY CARD. Companies should not use pool bonuses for a large portion of a compensation plan because they are too variable and unpredictable. For example, a company might divide 1% of sales among all the 9-star distributors in a proportional-shares pool based on each 9-star’s organizational sales volume. Second, in the proportional-shares pool everyone who qualifies earns the proportion that their downline contributed to the overall value of the pool.
Because of this, if a company improperly designs the pool, distributors’ earnings can fluctuate wildly depending on how many qualify that month. The company now takes the total value of the pool and divides it by the total shares awarded by the commission plan. This pool can encourage the dream builders to continue to build their organization even though most of their downline growth may be beyond their payline. The other vital issue about pool commissions is not to center too much of the compensation plan dollars around them.
A pool commission is an excellent way to keep the company’s payout from becoming too large but still create some innovative commissionable opportunities. They are the most flexible of all commissions allowing a company to target any group in the organization. A pool is a good way of encouraging distributors to continue to build even after reaching the top rank. Or, if a company is worried that its top distributors are maxing out their earnings too quickly, it can set up a pool targeting distributors with large downline sales.
Unless a company is careful, distributors won’t know the value of their shares until the commission runs for the pool. Additionally, companies must do enough modeling with pools to have a general idea of the pool’s range. Because of the flexibility, companies can use pool commissions to enhance front-end, mid-level, or high-end compensation. A pool bonus can make a real difference if a company is trying to encourage a specific behavior in its distributors.