How do you get paid with AdvoCare compensation plan? If you are looking into AdvoCare business opportunity then these are the questions you are now asking yourself.
Understanding AdvoCare pay plan is the first step in getting to know what you need to do for becoming an AdvoCare Distributor or AdvoCare Advisor.
You will also discover whether or not this MLM company is for you or not.
Can you really make life changing income with AdvoCare just by selling supplements? When you truly understand their comp plan it becomes clear what you actually have to sell in this company in order to succeed and it is not muscle powders, spark or cleanse drinks.
First of all before we get started let me lay down the framework for who I am and what this blog is about.
I have been in the multi-level marketing scene for a minute dreaming about becoming an AdvoCare Rising Star to building blogs for Empower Network, I’ve studied countless companies, from AdvoCare comp plans, reviews, pdfs, & their success system to learning about how to do direct selling, making a list of warm leads (friends & family) and how to approach them without looking like a complete sleazeball.
How did it pan out for me? Well lots of struggle, but I do not regret my journey of searching & failing because eventually I stumbled on the right mentors that showed me how to make money by ranking websites instead which solved my frustrating problem with most MLMs which was I was very bad at prospecting friends & family, or setting up mixer parties with the community. Working full time made it that much harder as well, but I could come home, sit on my computer for 2 hours and build a simple website…
and get paid for it on a monthly basis, because I’m driving traffic and phone calls to these businesses.
Anyway if there’s anyone out there that’s going to give you an honest assessment on the compensation plan in AdvoCare its me, because I’ve been part of it long enough to understand how this company works, yet I am no longer part of it so my words are unbiased as I am not trying to get you to become my distributor.
So lets hash out the biggest questions you may have for AdvoCare’s payment plan
1. How much commission do I make in AdvoCare?
you make 20% as regular distributor that bought the distributor kit for $79, as far as I know their pay structure has remained the same in 2015 and years before, most like AdvoCare compensation plan 2016 will be the same as well.
When you become AdvoCare business advisor, by selling $3000 worth of products like Spark and 24 Day Challenge, over 3 pay period which is 6 weeks, then you can become an full fledged advisor that can earn 40% commission. Which is another way of saying you can get the products straight from the distribution center in Texas at 40% discount.
Once you are an Advisor you are also AdvoCare independent distributor because now you’re not going to get your products from your sponsor anymore but straight from the headquarters in Plano, TX
2. Can I sell the AdvoCare Products at whatever price I want?
AdvoCare is extremely strict on not allowing their distributors to set their own price. You must sell AdvoCare to customers without distributor kit at full retail price (which in my humble opinion is rather on the expensive side relative to similar supplements on the market).
Why wouldn’t AdvoCare want you to set your own price if this is truly your own business? Because if people began setting their own price, their business opinion gets trashed. And AdvoCare makes most of its money through recruitment. Can you imagine if some big player opened up an online shop or retail store and started selling the products at 25% off retail to anybody and everybody?
That means everyone will go to that store or site and purchase the products and be done with it, without ever having the need to buy the $79 distributor kit from their local distributors.
This is just the reality of a MLM, if you thought you were just entering into a business to become a health & weight loss supplement store then think again.
& even if you are how successful do you think your business will be when there’s thousands of people across US selling the same exact product as you?
The reality is, in AdvoCare you are entering a business of recruiting people for the dream of making money.
Unfortunately it is 95% failure rate, on some level you have to convince yourself that if you can help just handful of families out of a hundred then it is okay.
3. Can you really make money selling AdvoCare products?
If you have been researching AdvoCare for a minute, you would have come across some of the rising star videos on youtube of guys making multiple 6 figure incomes right off the gate, from their first year in the program.
Are these realistic expectations?
Let’s think logically a second.
The amount of money most people are willing to spend on their supplement intake for a whole month is somewhere at $125.
If that person is dutifully on AdvoCare products month after month, we will assume they bought the distributor kit for $79 at $50 annual renewal fee to keep their 20% discount.
Lets say though that some people are buying at full retail which is 40% commission.
Take half way and we get 30% commission (average).
So for each customer that begin taking AdvoCare products on a monthly basis is roughly worth $125 * 30% = $37.50
For ease of calculation we’ll round that up to $40.
To make a six figure income, we’ll just say you have to earn $10,000 per month.
So that means $10,000 / $40 = 250, you must get 250 people to be on the AdvoCare products consistently every month for a whole year for you to earn 6 figure income in AdvoCare…
Do you honestly think you can find that many dedicated health fanatics in under a year?
if we divide 250 over 12 month, that’s 20 people per month that you have to get each month. But we all know that like going to the gym, taking supplements is also something that is hard to keep up for most people.
To give you some perspective on why I am so passionate about my local lead generation business is that it took me 3 months to build a site like this below, with maybe 15 hours spent max and now this site generates for me $1000 every month, paid straight by the local business owner that’s very happy to pay that for me because he has grown his business 300 to 400%
4. What is AdvoCare All-in purchase and Rookie Bonus?
Look selling supplements is simply not easy for one there is so much competition, it is an overly saturated market and two Advocare’s products simply aren’t competitive in their pricing. So how do these guys and gals we see on AdvoCare success school stage as rising stars make so much money right off the start?
Well two things.
- Their main focus is not getting people on the products, but recruiting people and getting them to go “all-in” on advisor purchase of $3000 worth of retail value of products, which allows that sponsor to earn $1000 in commission and more down the line if that person also begins selling all-in purchases, as you begin to make overrides on the effort of your team.
- AdvoCare Rookie Bonus: The top 10 highest earning new distributors for their first year in business get to earn bonus every pay period. First place gets $6000, second place gets $4000, third gets $3000, etc
First of all the crazy results you see in the testimonial videos are those that were earning the rookie bonuses which is only for their first year, but it gives an inflated illusion on seemingly money can start rolling in quickly when you join AdvoCare!
5. What is Overrides?
AdvoCare pays you bonuses based on the sales of people you have recruited into the company.
Override is 7% of business volume of your teammates.
6. What is Business Volume & Personal Group Volume?
Business volume is basically half (50%) of retail value of products sold.
So if your teammate Bob sold Spark to his friend at 20% discount at $32.
Then the retail value of Spark is $40, so business volume of that transaction was $20.
You make 7% of $20 in Override, so you just earned $1.40 payed off by AdvoCare, not Bob.
Bob earned $8 full in that deal.
What is personal group volume or PGV and why is that important?
So PGV is the retail value that your entire team sold in any given pay period which is 2 weeks.
This is important in understand the next way you get paid in AdvoCare as you build your team and that’s Leadership Bonus
7. What is AdvoCare Leadership Bonus?
This is where it gets bit more complex and the rule change depending on the volumes you generate, you can check out the thorough run down in my AdvoCare comp plan review post.
Basically on top of the 7% on business volume of your teammates, which is constant no matter how big you get or how small you are.
AdvoCare also rewards you bigger bonuses as your team gets larger and larger.
At first level, Silver Leadership you can earn 3% additional on the business volume on top of your override of 7%.
You get 2% more at the gold leadership level, so on and so forth.
here’s the graph
So when you add all of this up, when your team becomes enormous, when you reach highest of the highest, which is Double Diamond, you are earning 19.5% additional bonus off of the business volume of your entire organization.
So with 7% override combined with platinum or double diamond leadership bonus, you are earning 26.5% from the business volume
8. How do you truly get compensated in AdvoCare? What is generating this company its revenue? Is it the products or recruitment?
In order to make good money in this company, again as stated before, you have to become an expert in not selling health products, but recruiting people for the dream.
Just at the Ruby Leadership Level you are already earning 9% from leadership bonus so that’s now more than the override.
And in order to become a ruby, you have to have multiple legs or multiple distributors / advisors on your team that are doing large volumes.
At least 3.
In order for your 3 distributors to do those big numbers, you have to help those 3 recruit more people.
To make 6 figure income in this company, each of your 3 legs has to do at least $15,000 in retail revenue every 2 weeks.
You see, this is the name of the game if you truly want to make money in AdvoCare, it isn’t in the selling of AdvoCare products.
When you talk about big business volumes that has to be generated each month to sustain the six figure income, its not even really found in getting your teammates to sell products to people but the money is in getting people recruited on the all-in purchase of $3000.
I mean we’re talking $50,000 in revenue every 2 weeks to sustain a $8000 check every month in overrides & leadership bonuses.
Do the math
$50,000 revenue ever 2 weeks, means $100,000 revenue of products for the company in 1 month.
Your business value is half of that so half of $100K is $50,000 for the month.
Your override earning is 7% of $50,000 = $3500
At $50,000 every pay period means you will at least have Ruby Level Leadership Bonus if you structured your team correctly into 3 strong legs, so that’s 9% additional bonus from the business value which is $4500
So with leadership bonus and overrides combined, you earned $8000 in 1 month.
if you yourself did some recruiting that month, and sold some All-in advisor purchases, at $1000 commission per pop, then if you sold 2 all-in purchases per month, then you just made $10,000 in 1 month which is a 6 figure income.
How would your team ever hit volumes of $50,000 every 2 weeks?
Do you think they will get there by just selling spark for $40 or 24 day challenge for $300?
Not likely at all.
Your teammates must make Advisor recruitment sales of $3000 consistently each and every month.
9. is there such thing as hands free recurring income stream in AdvoCare?
I don’t believe there is, even the top advisors of the company agrees. To sustain a good income in this company, you will always need people that are working really hard to grow their AdvoCare business and getting their recruitment $3000 all-in sales. At 95% failure rate, most people will drop off over time, so to keep your organization going strong with all-in sales, you have to always help your team members recruit and close the deals. You have to motivate the team and keep them going, this is why they stress on the importance of taking your whole team to success school or AdvoNation.
Again ask yourself, why do you think its necessary for AdvoCare teams to go to these events year after year, if the products have remained the same?
Its to sell you on the opportunity, showing you successful rising stars is one big component of it. Showing you all the great star athletes and the important doctors and owners of the company to showcase AdvoCare as an opportunity that is for everyone.
Its not about the products for weight loss or building muscles, its about selling people solutions to time & financial debt, its about convincing people that AdvoCare is the best opportunity / solution / vehicle for a brighter future for people you meet and their families.
To sustain a 6 figure income you have to continually help your team members bring in more and more recruitment.
That means being part of 3 way calls, helping them do mixers, coaching new recruits on how they can build their business, etc
10. Why you will never see AdvoCare products in retail stores?
The truth about AdvoCare payment method is to compensate you for their big ticket item of $2100 all-in purchase.
As long as they make their business opportunity as sexy as possible, by building other intrinsic values of culture & being part of a family, the feeling of belonging to something, a higher purpose or vision, then they can continue to get those big ticket sales of people wanting that end result for themselves.
The point is to get people sold on the business opportunity. Whether you get that person to purchase to the advisor level right away at $2100 out of pocket all-in purchase or they work their way up there by doing PGV of $3000 within 6 weeks, by getting people sold on the business aspect they will for sure help generate at least $3000 in retail for the company because you need to unlock the overrides & leadership bonus as well as earning 40% discount on all products if you want to use AdvoCare as a vehicle for income.
So again this is why AdvoCare is saw strict on fixing the price because the business opportunity is everything, they have filed big lawsuits on people that did not respect the retail prices of products.
So if you are an independent distributor getting products at 40% discount and you hook up your friends and family at 30% discount, you could get in big big trouble for not abiding by their rules.
If this is truly your own business, shouldn’t you have authority over pricing your own products?
This is the same reason why you will never see AdvoCare supplements in Wal-Mart or GNC.
They cannot afford to have other people screw with their price because they must keep their business opportunity the most attractive sale item of the company.
Summary of Comp Plan, The 5 ways to get paid in AdvoCare, How do I make 6 figures in AdvoCare?
- Retail Sales (40% commission)
- Wholesale (20% commission)
- Leadership Bonus
- Rookie Bonus / Incentive Trips
Average advocare products sell for $20 to $40, maybe $100 to $125 monthly purchases per customer.
In order to crack 6 figures, you need a big team on to help you, a big team that can generate $50,000 in revenue every 2 weeks.
This will not be accomplished with product sales alone but recruits purchasing or selling their way to Advisor which generates $3000 in revenue each time.
The ruby level of leadership pin is a great place to aim for, and a good way to look at it is you need 40 people on your team each doing their PGV (personal group volume) of $1000 every 2 weeks. That’s $40K in your entire organization which earns you the Ruby leadership bonus which is 9% bonus on your business volume (BV), BV is half of retail, so that’s $20K. 9% of that is $1800, and you also make $1400 in override of 7% on BV, so both combined you earned $3200 in 2 weeks, in a month that’s $6400, if you get few “all-in” advisor sales yourself at around $800 commission per pop, if you sell 2 that’s $1600, so your at $7200 income that month, with few commission on people purchasing products from you, you should be able to hit $8333 per month which makes you a 6 figure earner.
Lots of hard work, lots of prospecting, lots of facing rejections.
AdvoCare Compensation Plan Exposed
As you can see to have a life changing experience with AdvoCare, you have to push around $40,000 worth of retail value products every 2 weeks.
It is no easy task, of course you yourself will not be doing the entire $40K, you have to have an organization large enough that’s doing those numbers. As a general rule, you will need at least 40 like-minded, driven, hard-working distributors on your team that’s consistently talking to new people about the products or business opportunity to people.
This is prospecting many many people over months and years. Lots of hard work & dedication to build.
Those that will succeed with this compensation plan has to understand what is the #1 product that this company rewards?
Its not anything you put into your body.
Its actually recruitment of people into becoming advisors. Its selling people on the business opportunity, because each time someone decides they want to give the business opportunity a go, that is $3000, in revenue from that person.
If you’re trying to generate $40,000 revenue every 2 weeks, you will never get there by selling products alone.
You have to get the $3000 all-in advisor purchases from the new recruits.
And the compensation plan is exposed when you understand that selling products for 40% to 20% commission is just the cover story…
95% fail, and the only people that can succeed in this business are those that is prospecting everyone about joining the business opportunity, in whatever way possible.
Whether that would be taking people to success school or AdvoNation, the end goal is to get yourself and your team sold on the company’s ability to provide financial & time debt solution for people.
This is what sits at the core of AdvoCare’s business model. & It is the reason why AdvoCare is almost 25 year old company doing over a billion in sales today.
Drew Brees, Metabolic Nutrition System, Catalyst, Spark, 24 Day Challenge is the cover story.
Is there an easier way to make money than AdvoCare?
Yes, and its local lead generation.
Because it is an unsaturated market.
Can you imagine having hundred of thousands of potential products to sell from instead of just 1 think “AdvoCare Business Opportunity?”
and also knowing that each product you sell, the lead generation site, will 100% improve that local business owners life & business for the long term.
Instead of knowing that 95% of people you recruit will fail and lose on their $2100 investment?
When you join a MLM you have to abide by their rules, and what happens if AdvoCare gets shut down by the FTC similar to VEMMA
Your hard earned monthly check goes out the window along with years of your life.
This is why I love local lead gen because you are in 100% control of your business. You are the owner and creator of the product, you decide on the price, and you decide 100% how you will get paid for your product.
And its much easier to scale because like I said, you can pick from literally thousands of cities out there and each city containing hundreds of different niches that could use lead generation like roofers, dentist, limousines, carpet cleaners, chiropractor, on and on.
Do you want 1 corporation to be in control of your money?
aren’t you simply just an employee of AdvoCare just in slightly different fashion than a regular job?
Every sale you make in AdvoCare obviously AdvoCare is making the money off your efforts.
What if I told you that with local lead gen you get to keep 100% of the time & energy you put into it with no middle man.
You are now a true entrepreneur that is directly selling the product to the business owners that need it.
The coaching program I am part of taught me how to do just that.
They taught me a skill that I can use to make money for myself using the internet. Just like learning how to do carpentry or build a house, its a skill that will have many different people come after you for your service for years to come & pay good money for you.
Because when you can do this for local business owners, they will pay you month after month.
Now all I need is a laptop and an internet connection and I can continue to build my 6 figure income business to higher levels each day.
Without approaching friends & family ever again.
Go here to learn more about the local lead gen business coaching program that’s turning ex-AdvoCare burnouts and failures into real, deal entrepreneurs making over $3000 per month in few months and finally killing their 9 to 5 job.
I have one tree service client right now that’s paying me $1000 per month, so with this business you really only need like 3 clients to change your life forever, whereas in AdvoCare, you need about 30-50 people on board.
It’s nice to finally make money for myself and not for another MLM company.
its nice to know that I will never depend on anyone or any corporation for my financial well-being.
To get the scoop on this awesome coaching program, visit this page.