Comparing Commissions

The feedback from Consultants regarding Paperly's new Commission & Career Plan, which is still relatively new (we just launched it on 09/01/10), has been overwhelmingly positive. And yet, I still occasionally hear from folks interested in joining Paperly, "Why are Paperly’s commissions limited to 26% when I see other direct selling companies offering 30, 40 even 50%?" Nothing could be farther from the truth!

1. Paperly's average party size in 2010 neared $450. I believe the industry average is closer to $350. Clearly, larger parties means larger commissions, so be sure to ask other companies what their average part size is.
2. Paperly’s Consultants do not need to carry inventory. Instead, Paperly's products are personalized and drop-shipped. No inventory means no additional investment beyond the Starter Kit. This is not true for most other companies. They need to offer a higher commission rate, because their Consultants need to re-invest in additional samples and inventory. Therefore, do not looking solely at raw commissions. Instead, you need to calculate your "return on investment" – i.e. how much you make versus how much you spend.
3. Paperly’s 26% is merely its base rate. Many of Paperly's Consultants earn substantial bonuses (up to 12%) by hitting achievable personal sales targets. Also, the 26% does not count the additional commissions a Consultant can earn: e.g. downline commissions (up to 6%) and team/generation bonuses (up to 8%).
4. Lastly, when I helped build Paperly's commission plan, I was adamant that a Consultant could be successful via (i) personal sales, (ii) building a team or (iii) both. I talk to Consultants every day and I know each ticks differently: some like to sell, some like to recruit… and that’s perfectly okay with Paperly. Please be wary of any direct selling company that requires you to recruit as the only way to be successful.

All that said, I think Paperly’s Plan is VERY competitive. Don't be blinded by looking solely at base rates, because so many other factors go into your final payout. Truly, the best advice I can offer when you’re trying to compare commission plans is: Find a company and product that you absolutely love, share your passion with everyone you know, and you’ll likely be very successful.

Happy Holidays,

Jay Rudman, CEO * Co-Owner, Paperly