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Monday, October 8, 2012

Point Value to Money Calculation

Point value, or PV in most multilevel promotion usually is applicable to a financial value that results in how much money you will get after purchasing a item from the organization. An representation would look like this:

SCENARIO 1

Let’s say, a item expenses $100 and each investment property on the item gives you 1 PV:
I get compensated on 100 PV for purchasing $100 value of products and if I am qualified for 10% bypass, I produce $10
Hence the money to PV rate is $1:1 PV – a money to money equivalent comparison

SCENARIO 2
Sometimes, the same cost of a item will only provide you with 0.5 PV for each $1 invested.
I get compensated on 50PV for purchasing $100 in this situation. If I am qualified for 10% bypass, I produce only $5.
Hence the money to PV rate now is $2:1 PV – you do not get as much as 1:1 because you have to invest more to produce more points
SCENARIO 3
Certain organizations might hand out special offers for products and provide $1:1.1 PV so if you buy $100, you get compensated on $110 value. At 10%, I produce $11 – more percentage from the organization on the item for less invested purchasing it,


Downline Building Strategies
If I need to produce huge amount for my team this 30 days, I would ask my down lines to concentrate more on promoting or going products that provide an improved factor value. That way, everyone usually spends less but generates more.

Product Synergy
Products on special offers usually provide an improved PV rate. Other products that are outsourcing (acquired from outside companies) usually give either less sized PV or the same PV but less sized company amount because they have to pay to the outsourcing organization as well. These products pay the supplier less but give more wide range on the company catalog.

Starting a New Company
Giving a higher money to PV rate usually motivates the suppliers since they get compensated more for the same attempt. If I were to pay attention to going great solution products (like water filtration, air therapy techniques or costly cookware) I would provide an improved PV motivation to suppliers to shift these products and go for the big dollars.

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