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Splitting Commission With Recruit

In summary, 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? 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. If she's the host, then she
SheCooks
1
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?
 
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.
 
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.
 
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!!
 
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.
 
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.
 
Did your director say exactly what the REASON was for splitting commision? I really think that's weird.
 
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. ;)
 
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.
 
  • #10
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!
 

Related to Splitting Commission With Recruit

What is "splitting commission with recruit"?

"Splitting commission with recruit" refers to the practice of dividing a commission between a recruiter and the person they recruited. This often happens in sales or recruiting roles where a recruiter receives a percentage of the commission earned by the person they brought into the company.

Why do companies split commission with recruits?

Companies may choose to split commission with recruits as an incentive for recruiters to bring in top talent. It can also help to create a sense of teamwork and motivation for both the recruiter and the recruit to work towards meeting sales or recruitment goals.

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

The split of commission between a recruiter and a recruit can vary depending on the company and the specific arrangement. In some cases, it may be a 50/50 split, while in others the recruiter may receive a larger percentage. It is important for both parties to have a clear understanding of the commission split before entering into any agreements.

Can commission splitting with recruits lead to conflicts or misunderstandings?

Yes, if the terms and expectations of the commission split are not clearly communicated and agreed upon, it can lead to conflicts or misunderstandings between the recruiter and the recruit. It is important for both parties to have a written agreement outlining the terms of the commission split to avoid any potential issues.

Are there any legal implications to splitting commission with recruits?

It is important to consult with a legal professional before entering into any commission splitting agreements with recruits. Depending on the industry and location, there may be laws or regulations that govern how commission can be split. It is important to ensure that any commission splitting arrangement is in compliance with these laws to avoid any legal issues.

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