AnWelcome to the Industry Insider, where today we’re talking about compensation plans! Are you thinking about getting into the online business space? Not all compensation plans are made equal, so it’s important to be aware of this information to make an empowered decision!

We believe that part of success lies in your mindset, but part of it also lies in the structure of the business you’re in. Too many people underestimate how much money they’ll need in order to retire. Too many people end up broke at age 65 instead of having the large amount of savings that they always hoped for. Don’t let this happen to you!

What a Compensation Plan Is

A compensation plan is how a business pays out your bonuses, commission, etc. For example, if you’re a car salesman, your compensation plan would likely inform you how much you would make on each sale. A good compensation plan will allow you to make a lot of money! Likewise, a bad one will make it difficult to make enough money and you may not be able to build up those retirement savings and have the life you want.

Our Compensation Plan

We wanted to go with a nice simple compensation plan that would also allow us to reach a high level (and allow other to do the same!) within the business. We brought on some experts to consult with us on the compensation plan, though that actually ended up making things difficult! There’s a fine line to balance between the big picture/long term and the short-term profitability of a company. The consultants were focusing on the top priority of profitability because they’re used to working with companies that want to make their shareholders happy. But in our business, we want to spread the wealth to everyone in the business, not just the higher-ups!

The Average Income Band: Don’t Trap Yourself There!

Let’s estimate that the average person on the low end of the spectrum makes around $30,000 per year and the average person on the high end makes around $250,000 per year. The first is just barely enough to survive, depending on where you live. The $250,000 is a lot more than many people would ever dream of. But did you know that it’s not the highest income possible? There is so much more potential out there! We would guess that at least 95% of people are within this range. But there are greater possibilities out there!

Instead of seeing $250,000 as the highest possible, look at something much, much higher. There are people out there making $75,000,000… that’s seventy-five MILLION! The person who is making $75,000,000 per year in income is actually making way more than $75,000,000. That’s because that income number doesn’t account for capital gains and all the other ways they are holding assets.

So, change your perception to look at the big picture. Even if it makes you a part of the “minority,” you aren’t off the scales if you’re making a half a million, one million, two million or more per year.

Key Points from This Episode

We had some issues with the Facebook Live streaming service, so this episode appears in three different parts, all three linked below. Here are the key points from this Industry Insider episode!

• What is a compensation plan? Part 1, 6:00
• What is the average income band? Part 2, 4:00
• How can I be fully prepared for retirement? Part 3, 0:00

View the entire episode of the Industry Insider with Shane and Rachel Krider right here on the Facebook page! Share with a friend if you’d like and enjoy!

Part 1: https://www.facebook.com/BornToProsperCommunity/videos/1047408822282309/

Part 2: https://www.facebook.com/BornToProsperCommunity/videos/705961403143660/

And, Part 3: https://www.facebook.com/BornToProsperCommunity/videos/2281785518785611/