Rank Bonus Rules
The differential bonus has a good degree of flexibility and can be configured in a number of different ways. A standard differential bonus is built around SKUs by rank. In a differential bonus, a company has the ability to pay out different commission amounts to distributors of different levels or ranks and in turn, pay differential commissions to upline distributors.
To explain, let’s assume that a higher rank normally receives 2x the commission amount that a lower rank receives for the same qualifying product sale. When a lower level distributor makes qualifying sales, the difference in the full commission paid to the higher level vs the commission amount paid to the distributor of the lower would be paid to the first person in their upline that qualifies for that higher commission value.
Because of this, it allows the company to set aside x dollars in commissions to be paid out to the upline distributor. In the event that there is no upline distributor that qualifies, that amount would go to the company in what is typically referred to as “breakage”.
Differential Bonuses can come in a few variations like Differential with Twist or Differential with Rollup. The Standard Differential Bonus is available in Binary, Unilevel and Matrix Compensation Plans