This is the forth Article on the LSN Compensation Plan.
Read our previous posts here:
- LSN Basic Tool Suite Compensation Plan
- LSN Pro Tool Suite Compensation Plan
- LSN Pro Tool Suite Team Bonus Matrix Structure
Is LSN The First Company To Pay 100% Commission On Their Products?
Now it is time to analyze one of the major claims concerning the
Lead System Network Compensation Plan and validate the legitimacy of this
claim. You most certainly heard everybody, including the owners of LSN themselves,
making a point that LSN is the first and only Network Marketing company to pay
a true 100% commission to their affiliates.
Almost every company nowadays is advertising 100% commission
payouts to their resellers. So we are justified to ask ourselves, what would
make Lead System Network different for all others advertising the same and why
would they say they are the only company give all the profits from the sales to
their partners?
Where Is This 100% Commission Concept From?
Marketing world about 3 years ago. And the very first company who started offering a full profit payout plan is Empower Network. Since, almost every business opportunities on the Internet have been offering the same to their resellers. But the thing is, even if they are all advertising 100% payment on product sales, in reality they are all paying less than 100%. And this is due to something else in their compensation plan called pass ups. The concept of passing up sales is very popular and means that the resellers will have to give up a certain amount of their own sales to the members in their up line. So in the end, the affiliates end up keeping about 80 to 95% of their direct sales.
The concept of pass ups does not exist in the LSN Comp Plan, with
only one exception where the reseller decides not to own the products and give
up their first 5 sales. So if you own the products or after you give away your
first five sales, all the direct sales you will be making will go directly to
you. Knowing this, you have no choice but agree that LSN is truly paying 100% commission.
But keep reading as you will learn that it is not 100% going to your bank.
In The End You May Not Receive 100% Profits From Your Sales
Every time a company is accepting credit card payments on their
website, they need to use a service called payment gateway or if you prefer, a
merchant account. This is the same for any offline merchant offering credit
card payment option in their store and even eBay is using Paypal as their
payment gateway. And these services cost something. The Lead System Network is
using eWallet to receive the payments from their customers but also transfer this
money to their resellers. And when you will be ready to withdraw your money, you will need to
pay a fee to eWallet for their service and will receive around 85 to 90 % of
your commission.
Even if you will receive less money than the 100% that is advertise
in the Lead System Network Comp Plan, we are still in agreement that LSN is
paying out all the profits from the product sales to their resellers. Because,
in the end, this money is going directly to the payment gateway provider and
not LSN.
