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Why the PV Requirement?

 
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JoeClark
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MessagePosté le: Lun 9 Oct - 16:21 (2017)    Sujet du message: Why the PV Requirement? Répondre en citant

I'm curious as to why many compensation plans have a PV requirement, or quota to qualify for downline overrides? To me, it seems like nothing more than a way for a company to withhold distributor earnings, and/or to force the distributor to buy more product than they otherwise would without the quota. It makes no sense to me how I could put in the work of recruiting a downline, but not make any income from their purchases unless they and I together buy more than a certain amount. Would the company simply not be profitable if it had to pay a bonus on every sale instead of only having to pay those that hit the quota? It would stand to reason that at any given time, most of the buyers are new downlines w/o anyone under them, and a fair number of their immediate uplines may not be consistently hitting the quota. That's the majority of the distributorship right there. Would having to pay those immediate uplines on every front-line distributor purchase bankrupt the company? What is the real strategy behind the mandatory PV requirement for bonuses? 
Thanks




I didn't find the right solution from the internet. 




References: http://mlm.com/forum/viewtopic.php?f=4&t=49099




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