Splitting Commission With Recruit

SheCooks · Aug 11, 2009

My potential recruit is hosting a show this weekend and then signing up using her kit credit. My director suggested in addition to giving her the bookings from the show, that she should also receive part of the commission. How do I do that? Submit the show as usual and then pay her out of my pocket for a portion of the commission?

pamperedlinda · Aug 11, 2009

No,I would not do that. She has chosen to have you do the show so that she can have the host benefits and buy down the cost of her kit - that is her compensation. Tell your director that SHE should give your recruit the overide that she earns from her if she thinks that she should be paid too.

babywings76 · Aug 11, 2009

If she's the host, then she's getting rewards. I wouldn't give her part of the commission, unless you really feel like doing that. It's not expected or a routine thing. At least I haven't heard of anyone doing that. You're the consultant and should get paid for doing the work you do. She'll start earning a commission once she starts her own business. She'll be given tons of rewards from PC for all she does. They are generous, so I wouldn't feel obligated to give her part of your commission.

mscharf · Aug 11, 2009

That would be the only way to do it. But I would not feel obligated. I tell all my recruits that they can either have me do the show (take all bookings of course) and use the kit credit OR make that show their grand opening, get the hostess benefits, bookings, AND the commission. All of mine have chosen the 2nd option. I still go to party and do the opening and closing (as well as booking and recruiting info). My last recruit had a $600 show with 8 BOOKINGS!! And another $1,000 show with 6 BOOKINGS!!

kdangel518 · Aug 11, 2009

I would definitely not split the commission. You are the consultant, they are the host- they are getting the $40 kit credit.I had a similar setup with a new recruit recently- she hosted a show, got $120 in free products, used $40 of that towards her kit credit. She was able to get a discount off her kit and products to add to her kit, and she learned from my show presentation. I got the commission, she got the recruit lead and the show bookings.You are handing her a business with show bookings and everything- you do not need to also split commission with her.

DebbieJ · Aug 11, 2009

pamperedlinda said:
No,I would not do that. She has chosen to have you do the show so that she can have the host benefits and buy down the cost of her kit - that is her compensation. Tell your director that SHE should give your recruit the overide that she earns from her if she thinks that she should be paid too.

ITA agree with Linda!

one thing you *might* consider--you collect the orders from those present at the show and use that for the show you will submit. Then let your recruit keep the outside orders to turn in as her first show (if she has enough). I have done that before.

chefsteph07 · Aug 11, 2009

Did your director say exactly what the REASON was for splitting commision? I really think that's weird.

Sheila · Aug 11, 2009

I agree that if the recruit is not wanting to submit the show as their first show, that they are giving up the commission. I also encourage people to pay for the kit & then use the show toward qualifying, earning PC $, getting the commission, AND all the host benefits. Having a team will eventually reimburse me for the time I spent doing the demo. I'm not worried about "working for free" that day.

Here's a thought: If your Director is giving part of her commission to people who sign under her & opt to use the kit credit instead of buying the kit outright ... how does she handle the taxes? She's paying taxes on all of the money, not just 1/2 of it.

chefann · Aug 12, 2009

It's also in the policies that the consultant who does the show is the consultant who receives the commission. Giving up your commission when you did the demo goes counter to that policy.

Intrepid_Chef · Aug 12, 2009

I'd just give her the bookings.Personally, I chose not to do the kit credit because I wanted my show to be my first ... and to get the bookings that arose from it.In my previous product line, I decided to be a consultant at my show. So who was invited to my first show? All those who came to the first one! And of course, they'd just been to one so attendance was lousy!

Splitting Commission With Recruit

What is "splitting commission with recruit"?

Why do companies split commission with recruits?

How is commission typically split between a recruiter and a recruit?

Can commission splitting with recruits lead to conflicts or misunderstandings?

Are there any legal implications to splitting commission with recruits?

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