SWA Safety Nets

Some people have seen some of the fantastic advertisements regarding the Supreme Wealth Alliance. You’ve probably seen those SWA Ultimate ads in Facebook which trumpet fantastic 5-figure earnings, and have wondered if Francis Chaves will lose money.

Let’s look at the figures carefully now…


Okay, let’s go back to the computations…

For this example, let’s assume that you are bringing in Direct Customers #13 to #18.

That’s 6 people paying $55, for a total of $330.
Under Pay Plan 1, you will cycle. And since you have brought in at least 7 Direct Customers or Direct Referrals, your Pay Plan 1 Cycle commission is $90.

(Again, please note that we’re assuming maximum commissions here. The only time you will qualify for $90 cycle commissions is after you have brought in at least 7 Direct Customers.)

Under Pay Plan 2, your commission is $20 x 6 direct customers, for a total of $120.

Adding your Pay Plan 1 and 2 commssions, that’s a total of $210.

That means Francis Chaves is left with $320 minus $210, or $110.

Now you might be wondering…

If you cycled, what if you re-appeared in your Upline’s Slot #6? Then your Sponsor or Upline would earn a cycle commission also, right?

Okay, let’s do the math…

For that to happen, your Upline/Sponsor will have Slots #1 to #5 filled-up first.
Let’s assume maximum commssions:
Pay Plan 2 = $20 x 5 = $100
Pay Plan 1 = $90
Total Commissions of your Upline = $190

Total Revenue of Francis Chaves = $55 x 5 direct customers of your Sponsor = $275

Amount left with Francis Chaves after he pays your Upline/Sponsor = $85

Let’s look at another scenario, where you filled up Slot #1, #3 and #4 of your Sponsor, then your Sponsor brought in only two more Direct Customers for Slot #2 and #5, then you cycled and filled Slot #6…

Here are the numbers:

Francis Chaves earns $55 (when your Upline bought his first SWA Account)

Francis Chaves earns $55 x 3 Direct Customers of your Upline = $110
(The 3 people are you in Slot #1, and those in Slot #2 and Slot #5)

Francis Chaves pays your Upline $20 x 3 PP2 Commission ($60)
Francis Chaves pays your Upline a PP1 Commission ($90, let’s assume the maximum amount)

Francis Chaves earns $55 x 6 Direct Customers because of you = $330
Francis Chaves pays you $20 x 6 PP2 Commissions ($120)
Francis Chaves pays you a PP1 Commission ($90)

55 + 110 – 60 – 90 + 330 – 120 – 190

This means Francis Chaves will end up with $35.

Now let’s look at a Third Scenario:
  • Your Upline brings in only YOU.
  • You do all the work.
  • We will assume maximum commissions.
Francis Chaves earns $55 when your Upline joins.
Francis Chaves earns $55 when you join.

Francis Chaves pays out $20 in PP2 commissions to your Upline.
You bring in 6 direct customers.

Francis Chaves earns $55 x 6 = $330 from your 6 direct customers.
Francis Chaves pays out $20 x 6 = $120 in PP2 commissions.

You cycle (and re-appear in your Upline’s Slot #2).
Francis Chaves pays out $90 in PP2 commissions.

You bring in 2 more Direct Customers. They fill up your Upline’s Slot #5 and #6 and your Upline cycles.

Francis Chaves earns $55 x 2 = $110
Francis Chaves pays you Commission of $20 x 2 = $40
Francis Chaves pays PP1 Cycle Commission of $90 (we’re just assuming maximum commissions in this example).

55 + 55 – 20 + 330 – 120 + 110 – 40 – 90

Francis Chaves is left with at least $280 (since we assumed Maximum Cycle Commissions of $90).

Now let’s assume the Most Efficient Scenario:

A group of 10 people, where only 2 people did most of the work.

Let’s assume further, Maximum Commissions.

Francis Chaves earns $55 x 10 = $550 in revenues
Francis Chaves pays out $20 x 10 = $200 in PP2 commissions
Francis Chaves pays out $90 x 2 = $180 in PP1 commissions

550 – 200 – 180

This means that SWA Corp will end up with at least $170 out of the $550.

This means that the minimum effective earnings rate of Francis Chaves is 170 divided by 550 or at least 30.9 percent.

So if there are 11,500 SWA members that’s an estimated $55 x 11,500 or $632,500 in earnings. Plug in the 30.9 percent, then that’s an estimated minimum SWA Corp Net of Commissions earnings of $195,442.50

Assuming P40.50 is to US$1, that’s P7.9 million (or around P660,000 per month).
From here, we can see that SWA Corp does not give away all its earnings.
Please keep in mind, though, that there are other costs:
  • Webhosting costs
  • Salaries of Techies, Admins, Finance
  • Transpo expenses
  • Business license expenses
  • Computer hardware
And then there’s the profit target of SWA Corp.

Remember, that P660,000 per month estimate assumes a highly efficient group of SWA marketers. Any inefficiency on the part of the SWA marketers translates to a higher cash position for SWA Corp.

Here are some assumptions (per month):

Webhosting costs = P35,000 per month
Staff Salaries = P150,000 per month
Miscellaneous = P15,000 per month

Based on these estimates, and assuming a highly efficient group of SWA marketers, SWA Corp has to generate around P645,000 in sales (new accounts) each month to sustain operations.
That’s around 258 new SWA customers each month, or roughly 9 customers a day (or 63 new customers per week).

In other words, SWA Corp has to find or develop at least 63 people who will each bring in at least one new SWA customer each week.

63 out of 11,500 = the Top One-Half Percent of the group.

Remember, this is just an ESTIMATE, and we’re working with the assumption of a highly efficient group of SWA marketers.

Any inefficiency on the part of the marketers will lower the Minimum Sales Target because less cash will need to be immediately set aside for Pay Plan 1 Cycle Commissions.

How Can Francis Chaves Sustain SWA Corp Operations
  • Continue attracting at least 9 new customers a day
  • Train/Develop more SWA marketers
  • Offer new products to existing SWA customers – monthly subscription model

0 comments:

Post a Comment