Some people like to stay on top of all the commissions they receive, especially early on when they are just starting out, and work out what they will get in advance. When your team becomes a lot larger, and you gain confidence in the compensation plan working, you will just accept that this is how it all happens, but sometimes, if you are not aware of the Commissionable Volume (CV), the amount you get may be less than expected. CV is common in network marketing companies outside of the US (often because of differences in tax, VAT, etc), and one that sometimes people can get stuck on, so here is some information about the Commissionable Volume – the volume amount that the Fast Start and Unilevel commissions are based on.

In the US, this is fairly simple.

But in the UK and European market, the commissionable volume (CV) comes into play when you are working out commission that is based on percentages of the volume itself.

Individual Products

One thing I have noticed is that fairly often, the CV for individual products is quite near the wholesale price before VAT of the product. The main reason I expect this is the case is that doTERRA has to pay out the VAT, and so we are not paid commission on that part. So let’s take a look at a few products, their wholesale prices before VAT and the CV.

  • Arborvitae – wholesale excl. VAT = £15.00; CV = 14.97
  • OnGuard Touch – wholesale excl. VAT = £14.00; CV = 14
  • TerraZyme – wholesale excl. VAT = £28.00; CV = 26.75
  • Detoxifying Mud Mask – wholesale excl. VAT = £12.50; CV = 10.53

Collections & Kits

With collections and kits, the CV does differ due to the discounts that are included. Here are a few examples:

  • Trim Kit (2 shakes) – wholesale excl. VAT = £115.00; CV = 87.91
  • Total Spa Kit – wholesale excl. VAT = £74.00; CV = 54.21
  • Family Essentials Enrollment Kit – wholesale excl. VAT = £92.00; CV = 73.26

In Practice

So, how would you then work this out? Well, you take the CV amount, and then multiply by the percentage for the commission. If you are working out the Fast Start commission you will get on your new enrollment who signed up with the Family Essentials Kit, you would take the CV of 73.26 and multiply it by 0.2 (20%), and get the commission amount of £14.65.

An Easy Formula

You can actually find the full list of commissionable volumes on the doTERRA Everyday website here. But if you don’t have that to hand, or if you want to quickly calculate an approximate amount based on the PV (product volume), then you can multiply the PV by a figure worked out by UK leaders, which is 0.6374, and you get a good, almost accurate amount. So, to demonstrate the enrollment with the Family Essentials Kit, you would take the PV that is 115, and multiply with 0.6374 and then 0.2 (20%), which gives £14.66 (pretty accurate).

 

 

 

Share: