PASSIVE INCOME: Profit Sharing and Long-term Residual Income.
- carillokhaela
- Jun 19, 2020
- 3 min read
What is Profit Sharing ?
Profit sharing is an incentive compensation program that awards employees a percentage of the company’s profits. The amount awarded is based on the company’s earnings over a set period of time, usually once a year. Unlike employee bonuses, profit sharing is only applied when the company sees a profit. Profit sharing generally occurs after the company determines final profitability for the year. If the company does not make a profit, it does not have to make contributions to the plan.
How Does Crowd1 Profit Sharing Work?
Unlike with other companies that gives incentives yearly, Crowd1 gives incentives quarterly. What we will receive QUARTERLY is a DIVIDENDS from the 40% Profit sharing from Crowd1 compensation program that awards its affiliate a percentage of the company’s profits. The value that is distributed quarterly is not consistent or fixed because the amount awarded is based on the company’s earnings over a set period of time.
Let me give you one example.
What if you would be the owner of 100 shares Microsoft.
The value of 1 share Microsoft is $189. In the past 3 years Microsoft gave $ 0.51 dividend per share. So, you own 100 x 189 = $ 18,900 and you get dividend of only $ 51. You received a little share in the profit of the company, that is shared amongs all shareholders of Microsoft.
The system with Crowd1 is the same. Let's say the profit in the past 2 months was 2,5 million euro. 40% will go to the members with a paid education pack, and owning C1 Rewards. In this example this is 1 million euro. Let's assume there are a total of 1 billion C1 Rewards amongst the members.
Then the 1 million euro has to be shared amongs 1 billion C1 Rewards, which results in a profit sharing of € 0.001 per C1 Reward.....
Conclusion: The higher you gather C1 Rewards, the higher you will receive quarterly dividends.
Benefits of Profit Sharing
The main benefits of profit sharing for employers and employees alike stem from employee motivation. Giving incentive's to employees/Affiliates helps them increase their effort, and, as Harvard Business Review found, it results in higher levels of EMPLOYEE PRODUCTIVITY AND SATISFACTION. Feelings of ownership and loyalty can also increase.
What is Long-term Residual Income ?
Residual income is an income you receive after doing initial work. Residual income is something readily available for those ready to explore income sources. In Residual Income, the company contributes a part of its profits into a pool of funds to be distributed among eligible employees.
As being an active affiliate of Crowd1 who helps the company achieve its goals by being one of its salesperson who markets its products in the library portfolio , you can be qualified to be part of the 40% residual income once you have achieve Network Level as part of the compensation plan of Crowd1.
Residual Income is released Monthly.
How Does Crowd1 LongTerm Residual Work?
Each Network Level Pool you passed through, you can get a part of the income of those pool.
The Crowd1 turnover is distributed equally across all 21 levels.
the 40% income from the compensation plan will be divided into 21 pools
The total number of members who are in the same pool are the one who will share the income in a pool. This means that the lower your level is, the more people will divide or share the income in that particular pool, this is why you need to RANK UP! The higher your rank is, the lesser people who will share the income.
Why does a company: Crowd1 gives Profit Sharing and Long Term Residual Income?
It is to give the assurance that all affiliates that performs well will be rewarded above and beyond their base income from the binary bonus for helping the company prospers.
The offer of profit sharing can also be a valuable tool in helping companies invite and keep talented, enthusiastic employees.
Sources:
-Kings University Online Article (2017). How Does Profit Sharing Work?
Comments