Monday, September 18, 2017

Understanding of the System

Vestige gets its profits from purchases made by distributors. Unlike other brands, Vestige derives 60% profit from its sales. This happens as the only two players in the game are the manufacturer and the distributor (YOU). There are no middlemen involved. Hence, there's a lot more profit to reward to the distributors with.


How do you earn here?

Distributors earn in the following ways:
  • Accumulative Performance Bonus - 5% to 20% 
  • Director Bonus - 14%
  • Various Funds, such as  : .Leadership Overriding Bonus – 15% ,Travel Fund – 3% , Car Fund – 5%, House Fund – 3% 
Performance Bonus - These are the commissions that you earn when you and your downline purchase Vestige products. These commissions range from 5% to 20% depending on your level of achievement.

Director Bonus - Once you achieve the level of director, you qualify for director bonus which is a certain amount from the 14% of the company's overall profits for the month. This 14% director bonus is shared with you and all other directors and each director receives a certain amount based on his level of achievement.

Various Funds - As your level in the system keeps rising, you become elegible for additional earnings such as Car Fund, House Fund and Travel Fund.

What is PV and BV?

PV is Point Value. Every product holds a certain point value which you accumulate when you or your team makes purchases. BV is Business Volume ie. the amount of profit that the company gets, from purchases made. PV and BV plays a major role in the system. They define your level of achievement and you receive your bonuses accordingly. There are certain criteria that define your level which is mentioned in below table.




These points also play a role in defining the amount of director bonus share you get from the 14% of company's profit for the month.

How do you earn from your downline?

Lets assume that you got a downline of 6. It is the first month and they, including yourself, have done shopping of Rs.3000/- each. That gets each of you approximately 100PV and 2000BV. So adding up all of your group PV and BV, you get approx 700PV and 14000BV. Now 700PV and 14000BV places you in 8% performance bonus. So 8% of 14000BV = Rs.1120/-. This is your group earnings for the month. Now these earnings will be divided among your group depending on their level of achievement and the latter goes to you.

Your team is on 5% as of now. Each person under you has 100PV and 2000BV approximately. So 5% of 2000BV = Rs.100. This is what each person under you will earn. So since there are 6 members under you who receive Rs.100 each, we total that which comes to Rs.600/- and subtract it from your total group earnings ie. Rs.1120/-, which amounts to Rs.520/-. So Rs.520/- is your earning for the month.

In the months that follow, taking into account that every member including you does the same amount of purchase, you all reach a higher level of performance bonus. The PV and BV from the previous month gets carried forward to the next month to aid in boosting your level of achievement month after month, thus qualifying you and your team for higher rate of performance bonus (commission). So roughly speaking, in the second month, you should expect around Rs.1000/- and that keeps increasing more and more as the months go by. As your team starts to build, the power of multiplication kicks in and your earnings start to increase faster and faster.

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