Nikken’s compensation plan is a Stair-Step Breakaway and may be considered a bit dated by most people in network marketing now. It isn’t a binary or matrix scheme filled with a bunch of confusing gimmicks.
Here is a video I recorded that explains the compensation plan in terms of how much money you can make at each level.
In the compensation plan you start out as a Direct Distributor and as you meet certain sales goals you advance through the ranks until you are a Silver Distributor and “break away” from your upline. Through these ranks you earn the retail profit for the products you sell to customers as well as rebates on anything you buy and overrides on anything your downline team purchases or sells.
The rebate starts out at 0% at the Direct rank, increases to 5% at Senior, 10% at Executive and 20% at the Silver rank. The override on your team’s purchases works similarly. It is equal to your rebate percentage less their rebate percentage. For example, if you are a Silver distributor with a 20% rebate and you have a teammate at the Senior rank earning a 5% rebate then you will receive a 15% (20% – 5% = 15%) override on any of their purchases and on anything that they sell to their retail customers.
Once you break away at Silver your upline no longer receives overrides based on your or your team’s activity. It has essentially zeroed out because 20% – 20% is 0. Now they receive a “Leadership Bonus” of 6% on your non-break-away team’s activity, as will you once your sponsored people reach Silver. This is a great way to make money because you are potentially making 6% from A LOT of people.
You advance in rank from Silver based on you helping your team members advance in rank instead of on you reaching sales goals. Once you are Silver you get paid that 6% leadership bonus on 2 levels of Silvers below you and you advance to Gold buy helping 3 of your front-line people advance to Silver or above.
You move from Gold to Platinum by either helping 3 of your Silvers move to Gold or by helping 6 of your people reach Silver. At Gold you get paid on up to 3 levels of Silver or above. Rank advancement continues in the same way until you reach Royal Diamond and are paid on up to 6 levels of Silver or above below you.
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