There are two answers to that question.
Take a typical retail
$ and let us look at how it breaks down.
Watkins keeps around 40% of every $ of retail sales to cover the cost of the raw materials and the packaging & shipping costs to the warehouse. The selling associate gets to keep, on average, 25% as the "retail profit" - with the remaining portion (in most cases around 35%) being paid to the associates by way of various bonuses.
The bonus structure is beyond what we can cover here but we will gladly explain it fully in person. The system is structured to reward those who build a strong and profitable business. As a minimum, an associate will make 25% profit on basic retail sales - with the really hard workers being able to make closer to 50%. The remainder of the "bonus pot" (around 10% of the retail value in most cases) is paid out by way of various company-wide incentive schemes.
How many businesses return 60% to their distributors? The real bottom line is that associates are rewarded for running and managing a business. The larger the business, the greater the rewards. If you want to know the full story, e-mail us to learn more.
Note: The figures quoted here are averages. The retail profit is 25% for all retail sales (excluding discounted items and purchases of business support materials). The bonus component will vary by product. All associates will start at the 25% level. How far an associate progresses into the higher reward levels is determined by their investment of time and energy building a business.
