Month: January 2016
I attended the first Gameday seminar for a new company getting launched today, Bonvera. I have had involvement with community building and networking industry for 12 years. So I just wanted to post some of my biggest impressions.
Minimized breakage in the compensation plan
Many companies in direct sales, and frankly any sales make great additional profits by having loopholes in compensation, called breakage. Such as when a customer minimum isn’t met, or a specific component of a quota is not attained those dollars do not stay in the field, they go off into the never-never land of the companies pockets. The 7 level unilevel compensation plan seems to have eliminated much of this with the dynamic compression.
They also have it built into the structure a restriction on the profit of the company to 10% or less and any other profit must be feed back to the field. Only 5 of there 9 compensations were covered so it is not obvious which means would be used but that will be more clear when they launch and the rest of the plan is revealed with the product website launch on February 15th.
The structure of the organizations
Bill Newton went into a fairly detailed explanation of the structures that are in place to maintain a legal relationship between the compensation and the training system business and to maintain the control of Bonvera’s board. Bonavera’s board of directors has 5 members and 3 of them, a controlling majority, are appointed by an organization called the ICAA(ICAAboard.com). This is an association of Bonvera’s field associates. Every member of ICAA( has a $8/year fee) will have voting rights, not just those that attained a certain rank. The training material and events are put on by a company called Extroda(extroda.com). They are comparatively priced given industry standards with CD packs priced from 19.95 for 3 audio CDs – 25.95 for 4 CDs. They also have a training booklet for 8.95. The profit from these is not part of the Bonvera comp plan as would be prohibited by law. Also prohibited by law is using these profits and how they can be attained as enticement for the company so it is no surprise that these profits are not discussed. Many of the leader came from other companies that have used a directorship of the performers on an performance basis so I believe it would be fair to suppose they are paid out in a similar basis. This structure was done under the consultation of the Mike Sheffield Legal Group one of the most respected networking legal firms in the world.
The genuine passion of the leaders
This one was very easy to see. These men and women seemed to care greatly for the people in the field and their success. I presume because they came from the field and will be staying in the field with the company. This showed through with all the speakers.
Philosophy of Product Offering
Bonvera is intending to compete with Amazon and WalMart and have an eventual product offering as diverse with the profit being the pay for the associates. They call this concept anyway money; ‘you are spending it anyway’. Bill Newton explained the concept that Bonvera will be offering products that “have a 2% margin and 100% margin” and that this hasn’t really been before because it would have cost enormously from the profit of a networking company. He didn’t say this but if I can expound on that it is because much of the purchases created with most of the industry are at least buffered by the pressure from association to purchase and the compensation plan and if the lower level members with most companies had options within the offering they would opt for the less expensive and less profitable. Thus we get to that loss of profit that Bill mentioned. This seems to me a bold way to do business from the start with a program that allows freedom of competition between suppliers and benefits for new members and customers, at the short term expense of the company and field leaders. I believe if this is true it will engender great loyalty and good will toward Bonvera.
Chris Mattis stated that everything else out there that purports to be an opportunity like Bonvera boils down to a loyalty club where the suppliers are not really partners, offering real margin, but just affiliate programs offering a few percent discount and little profit. Chris makes a very compelling case for Bonvera as a company that truly has partners on all sides: for the Bonvera associates there is the opportunity for profits and a sustainable passive income, for the customer there is legitimate money savings from the price-point allowable from reduction of overhead, and for the manufactures/suppliers there is a truly dedicated group for product flow because they are ‘not just buyers, but owners’ and thus committed to buy from themselves for the savings and the income.
In the interest of disclosure I am going to join this company. Chris Mattis ended his talk with an anecdote about the ‘Unicorn’, a hypothetical networking company where things are setup in such a way that the customers have a real and lasting reason to buy, that uses money that is already being spent, where the systems can make for a passive income, and where there are safeguards against greed causing a corruption as things grow big, a company that can really go mainstream. These leaders obviously believe that is what they are building with Bonvera and I would hate to look back and regret not being a part of it.