SWA Pay Plan Analysis

Let's see what's inside the so-called SWA Pay Plan.

Source: http://swaultimate.com/page/payplan

Out of the $55:

a) $30 will go to the 2x2 Dynamic Follow Matrix
b) $20 will go to the Infinity 3-Up Pass Up (referral sales commission)
c) $5 goes to the Admin Fee

The $30 does not make sense.

Assuming you made 6 direct referrals sales, your 2x2 Dynamic Follow Matrix will earn you a Cycle Commission of $70.

But if we look at the "breakdown" of the $55, $30 x 6 direct referral customers = $180.

$180 - $70 = $110

Who gets the $110?

You might say that the Upline got it because the downline cycled.

Let's assume the Upline has 5 direct referrals (A to E), and customer E has 6 direct referrals (E1 up to E6).

With Customer E6, Customer E will cycle and earn a cycle commission of $70. Customer E will also appear in the 6th slot of Upline (slot F), and Upline will earn a cycle commission of $70, for a total cycle commission of $140 (Upline + Customer E).

Upline brought in 5 direct customers, while Customer E brought in 6 direct customers, for a total of 11 customers.

Multiply $30 by 11 customers and we get $330.

$330 - $140 cycle commissions = $190

Who gets the $190?

From this example we can easily see that the $30 does not go only to the 2x2 Dynamic Follow Matrix.

What actually goes to the 2x2 Dynamic Matrix is $11.70 or $12.70 per direct customer. That's 6 divided by $70 or 11 divided by $140.

For simplicity, let's just say $12.

So the actual breakdown of the $55 is:

$12 goes to the 2x2 Dynamic Follow Matrix
$20 goes to Infinity 3-Up Pass Up
$5 goes to the Admin Fee
$18 goes to Supreme Wealth Alliance Philippines, Inc.

The actual Cost of Goods Sold of SWAPI is $32 per SWA Ebook Library Customer, or a Gross Profit Rate of 42 percent.

That means people selling the SWA Online Library of Ebooks will effectively earn the following commissions:

2x2 Dynamic Follow Matrix = 22 percent commission
Infinity 3-Up Pass Up = 36 percent commission

But that's assuming everyone brings in at least 6 direct customers.

Now let's imagine a world where everyone can bring in only ONE direct customer.

Here's what the breakdown will look like:

$20 goes to Infinity 3-Up Pass Up
$5 goes to the Admin Fee
$18 + $12 = $30 goes to Supreme Wealth Alliance Philippines, Inc.

The actual Cost of Goods Sold of SWAPI in this case is $20 per SWA Ebook Library Customer, or a Gross Profit Rate of 64 percent.

From a Profitability standpoint, it will be better for SWAPI if its customers each bring in exactly ONE direct customer only.

At $35 x 100,000 SWA customers that's US$3.5 million (or about PhP 150 million) in Gross Profit, assuming the one-direct-customer-per-customer-only scenario.

This means that if ever SWAPI totally runs out of new customers, it will still have time to develop and offer new products to its existing customers.

SWAPI can also introduce products with monthly recurring subscription revenues to help ensure the continued existence of SWAPI.