31-08-2017, 12:09 AM
(This post was last modified: 31-08-2017, 12:14 AM by Value Explorer81.)
Thank you boon for additional information.
I read this from the link you posted:
The salespeople said they would also earn a bonus on the sales of each person they brought into the organization. If the salesperson made 8,000 yuan (about $1,300) in net sales and enlisted four people, who each also made 8,000 yuan in sales, he would get a 3,360 yuan ($550) bonus (18 percent of the total 40,000 yuan in revenue minus the 12 percent, or 960 yuan, that would go to each of his four recruits).
It’s not correct to say a salesperson would get a bonus for sales made by recruits, Amway’s Balfour says. The online document isn’t an Amway document and isn’t accurate, he says. The company has two categories of distributors in China: representatives, who earn commissions solely on their own sales, and authorized agents, individuals who register with the government as businesses.
“Sales representatives are true direct sellers in that they’re going out and selling the product to family and friends,” Balfour says. “Authorized agents actually have a fixed location.”
The sales from agents’ shops are counted as personal volume, he says. Under Chinese law, Balfour adds, “networks and groups are not allowed,” so Amway structures its business differently than in the rest of the world.
China’s regulations stipulate that “the remuneration paid by the direct-selling enterprise to its direct salesman shall be calculated only based on the income of the products sold to the consumers.” - https://www.washingtonpost.com/business/...8dc8ff92b7ditio
If Amway China can do it, why cant BWI?
Unleashing the sales force: In recent years, Best World has been getting the ground ready to unleash a surge in direct-selling of its products in China.
It has been reaching out to owners of, for example, nail spas, beauty salons, lady spas and hair salons. It has introduced and sold them Best World skin-care products, which they have in turn promoted and sold to their own customers.
This accounts for the $22.4 million revenue (up 165% y-o-y) in 1H2016 attributable to the China market.
Now that Best World has secured a direct-selling licence, these business owners are poised to become distributors whose customers can in turn also become direct sellers of Best World skin care products.
In direct-selling parlance, the business owners are the "upline" while their customers are the "downline". "There's now a huge difference. Instead of being the owner of one store selling to, say, 200 customers, now a hair salon owner, for example, has 200 downlines which effectively is like having 200 stores! These Chinese are quick to recognise this as they are very business savvy, and they have signed on with us," said Mr Huang. - https://www.nextinsight.net/story-archiv...ales-surge
All the best to BWI shareholders and BWI management. Hope that Q3 result will speak for itself. =)
I read this from the link you posted:
The salespeople said they would also earn a bonus on the sales of each person they brought into the organization. If the salesperson made 8,000 yuan (about $1,300) in net sales and enlisted four people, who each also made 8,000 yuan in sales, he would get a 3,360 yuan ($550) bonus (18 percent of the total 40,000 yuan in revenue minus the 12 percent, or 960 yuan, that would go to each of his four recruits).
It’s not correct to say a salesperson would get a bonus for sales made by recruits, Amway’s Balfour says. The online document isn’t an Amway document and isn’t accurate, he says. The company has two categories of distributors in China: representatives, who earn commissions solely on their own sales, and authorized agents, individuals who register with the government as businesses.
“Sales representatives are true direct sellers in that they’re going out and selling the product to family and friends,” Balfour says. “Authorized agents actually have a fixed location.”
The sales from agents’ shops are counted as personal volume, he says. Under Chinese law, Balfour adds, “networks and groups are not allowed,” so Amway structures its business differently than in the rest of the world.
China’s regulations stipulate that “the remuneration paid by the direct-selling enterprise to its direct salesman shall be calculated only based on the income of the products sold to the consumers.” - https://www.washingtonpost.com/business/...8dc8ff92b7ditio
If Amway China can do it, why cant BWI?
Unleashing the sales force: In recent years, Best World has been getting the ground ready to unleash a surge in direct-selling of its products in China.
It has been reaching out to owners of, for example, nail spas, beauty salons, lady spas and hair salons. It has introduced and sold them Best World skin-care products, which they have in turn promoted and sold to their own customers.
This accounts for the $22.4 million revenue (up 165% y-o-y) in 1H2016 attributable to the China market.
Now that Best World has secured a direct-selling licence, these business owners are poised to become distributors whose customers can in turn also become direct sellers of Best World skin care products.
In direct-selling parlance, the business owners are the "upline" while their customers are the "downline". "There's now a huge difference. Instead of being the owner of one store selling to, say, 200 customers, now a hair salon owner, for example, has 200 downlines which effectively is like having 200 stores! These Chinese are quick to recognise this as they are very business savvy, and they have signed on with us," said Mr Huang. - https://www.nextinsight.net/story-archiv...ales-surge
All the best to BWI shareholders and BWI management. Hope that Q3 result will speak for itself. =)