What is BV (Business Volume)?

Join Page Questions MDC COMPENSATION PLAN What is BV (Business Volume)?

This topic contains 1 reply, has 2 voices, and was last updated by  George Perantinos 2 years, 6 months ago.

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  • #60706

    Chris Record

    My Daily choices uses the term “Business Volume” in the compensation plan frequently, so it’s important to understand what it is and why it’s important.

    When direct sales companies create compensation plans, it’s generally pretty difficult to pay off of the “retail price” of products sold because some products may offer large profit margins while some may offer small profit margins.

    It would be even more confusing if every single product had different commission rates on it, so a much simpler solution that companies use is to create a standard commission that everyone receives, that pays off the “business volume” of the product.

    That’s where BV comes in.

    For example, a CBD Bath Box retails for $49.00 + s&h.  And the business volume on it is 25BV, which is roughly 50% of the retail price.  As affiliates, we are paid on the business volume, not the retail volume of the products sold.

    In another example, a single tincture of HempWorx CBD Oil retails for $69.00 + s&h.  And the business volume on it is 40bv.  Which is MORE than 50% of the retail price.  It’s actually much closer to 58%.  So you can see how different products have different business volume on them.

    So when you are trying to Rank Up, or trying to figure out how much you might earn in commissions, hopefully this example of BV helps you understand it better.

    I’ll give one more quick example.

    If you are an active Executive, and you sell a new member on an Executive pack in the USA, they will pay $599 + s&h.  And it will generate 400BV (business volume).  You will earn a fast-start bonus of 50% of that business volume for making the sale, which earns you $200 in your next week commission check!

    Don’t worry if it’s confusing at first.  Over time you will understand it better.  Keep learning, keep reading, and most importantly Take Massive Action and figure out a lot of this stuff as you build!

  • #60841

    George Perantinos

    This mean that the company pays commission on the 60% of the turnover , the company receive 100 USD and calculate the commission on the 60 USD,

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