What Is a Coded Compensation Plan?

What is a coded bonus?

A coded bonus is not a bonus made by a rep but a bonus received based on being “coded” to another rep. You can also classify it as a “matching” bonus. Let me give you an example of a coded bonus.

This is from my actual company so there may be slight variations from one coded compensation plan to another but you should get the idea.

In my company, the first three people you enroll are your foundation code. Your fourth and beyond are considered your legacy code. In your foundation code, anytime someone in your first three receive a legacy bonus, you receive a 50% match and you are also matched to their fourth and beyond (or their legacy).

In your own legacy code, you receive a 100% coded bonus on those you enroll and their first three people (basically, your legacy code’s foundation code).

So, lets say you enroll Anthony as your fourth person. Keep in mind, in any company you are NOT paid for enrolling, you are paid based on the sale of product. In my example, Anthony has come onboard as an executive and received product. You make a $100 fast track bonus but you are now coded to Anthony, meaning, you get a 100% match on his efforts. If Anthony enrolls 5 people that all get product, Anthony makes $500, but, so do you as it is a 100% coded bonus match. You are then coded to Anthony’s foundation code and get 100% of their efforts as well.

So, if Anthony’s first enrollee is Carol and Carol brings on 4 people that get product, she will receive $400, but, so will you as you are coded to her.

The Coded compensation plan has actually generated the largest bonus checks in network marketing. Paul, a former high school football coach, was making $1.8 million per month in a company called Excel as they had the coded bonus in their coded compensation plan.