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DubLi Compensation: Valuing The “3 Positions” – $1.5 Million?

October 20, 2009

Placing a value on the 3 Positions for 2-year
$1 Million Bonus Qualification Extension

I have two agendas in this post:
1.  Establish the value of the three positions for a 2-year window to reach the SVP $1 Million Bonus; and
2.  Make clear what you have to do to earn those 3 positions.

In the DubLi Corp. August 21 newsletter, in probably the most audacious and exciting company newsletter I’ve ever seen (to my delight), DubLi committed to giving to anyone who reaches VP by the end of 2009, three rep positions that will have a two-year window to reach SVP and the $1 Million Bonus.  (DubLi also announced the $1 Million Bonus is available to anyone who reaches SVP by the end of 2010.)  DubLi began their explanation by saying, “There’s no economic crisis here at DubLi …” – my favorite quote of the year!

To better illustrate exactly what those 3 positions are, I’ll quote DubLi from their Aug. 21 Newsletter:

“All [VPs] will be given three (3) licenses upon qualification which can be distributed freely to selected candidates within your respective organization, which will entitle the recipient holding that license to a two (2) year extension for qualifying as a SVP and earning the $1,000,000 cash prize. In other words let’s say you qualify as a SVP in March 2010, at that time you will be given three (3) SVP licenses which you can freely distribute to the most qualified persons in your organization, and they in turn can use that license in order to achieve the title of SVP within the next 24 months, or by March 2012 in this example.”

DubLi goes on to say, “be very selective in your decision making process about distributing these valuable licenses, because once you have given them away, you can’t get any more. A good rule of thumb would be to identify those BA’s in your business who have at least achieved the title of Sales Director.

VALUE OF THE 3 POSITIONS?
If you’re like me, you start running the numbers on how much one of those 3 positions are worth.  Just using common sense, without any math, it’s easy to surmise that if you give one of your reps a full 2-year extension to reach SVP and the $1 Million Bonus, that’s probably worth at least $1 Million to the person to whom you bestow it.

What’s it worth to the upline?  Realistically, to reach the SVP rank, you’ve got to have a minimum of about 2500 reps, so if you average $200 income on each of those 2500 reps, that’s $500,000 right there.  If you only averaged $100 per rep, that’s still $250,000.  So three of those positions are worth at least $750,000 when the SVP rank is reached, and most likely at least double that.  The average VP in Europe has approximately 5000 reps, so ultimately those 3 positions will probably pay in the neighborhood of $3 million.  To be conservative, which I am, let’s cut that $3 million in half, and we’re still looking at $1.5 million, which is more than the $1 Million Bonus for reaching SVP.

I encourage you to read through the newsletter at least a couple times, so you are very clear about the importance of this announcement.

REQUIREMENT TO EARN THE 3 POSITIONS?
If you go to the Aug. 21 Newsletter, at the top of it you’ll see I just added
an update, correcting the announced requirements to acquire those 3 positions.  I’ll repeat what a rep must do to get the 3 positions, which that rep can then give away to 3 reps in his/her team:

“All who get [to] VP before Jan. 1st 2010 will get 3 licenses.  Best Regards, Laura White, DubLi Network Support”

That’s about as clear as you can get, yes?  So, by the end of 2009, anyone who reaches VP will receive 3 positions to give then away and setup 3 of their reps to make the $1 Million Bonus.  Guess what I’m hustling to accomplish in the next 2.5 months?

CONCLUSION
Based on what I reviewed here, it’s clear to me that over the next couple of years, the 3 positions will be worth considerably more than the $1 Million Bonus we can earn by reaching SVP before 2011.
JC

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