Wednesday, April 7, 2010
Planning Your USANA Rank Advancements
Moving to the next USANA pin level is a goal shared by most USANA Associates, and we often discuss this goal and the plans to achieve it.
What we frequently hear from team members is how they are going achieve their goal by making so many approaches or presentations per week or per month, and even how many Associates they will sponsor in a given period of time.
Defining these Single Daily Actions (SDAs) is critical to the planning process, and helps us measure if we are making daily progress toward our goal.
However, what we also need to keep in mind is the actual end game. Remember, new ranks are achieved and pins awarded based on actual Sales Volume Points (SVP) in one or more Business Centers during a specific period of time (One week for Sharer through Silver Director, and four consecutive weeks for Gold and above).
What does this volume “look like”, and how will you create it to get to your rank advancement goal?
Let’s work through an example to find out:
George is a USANA Sharer and he has set a goal to become a “Solid Achiever” in 90 days.
You will recall that the rank of Achiever is achieved with 2,000 SVP (Current and Carryover Volume combined) in each leg of any single BC in one week, for a total of 4,000 SVP. This volume will generate a commission check of $400USD for the week for that BC.
Remember, George said that he wanted to be a “solid Achiever”, which means that he wants to be earning at least $400USD from one BC week in and week out. In order to sustain that income, he will need to make sure that his team is generating at least 4,000SVP of Group Sales Volume (GSV) every week.
Before we work through George’s situation any further, let’s first review the various ways that GSV is generated in a USANA organization:
1. SVP from Associates’ and Preferred Customers’ (PCs) Autoship Orders
2. SVP from initial orders of new Associates at the time of enrollment, which may consist of ProPacks, Three Business Builder Packs, Basic Pack 250, Convenience Pack 500, etc.
3. SVP from individual or “fill in” orders by Associates and PCs
4. SVP from Retail Orders placed online through the Associates’ USANA Web Hosting Site by Retail Customers
5. SVP from the Associates’ own “fill in” orders, over and above their Qualifying Volume, and placed in a Personal Sales Position (PSP) on the left or right side of one of their own BCs
For the sake of this discussion, we will only work with the Associate Autoship Order portion of the GSV, since it is typically far and away the largest portion of an Associates’ GSV, and also the easiest volume to forecast since we can look up Autoship Orders in our organization in the USANA Downline Management (DLM) system.
Now, back to George…..
Let’s start with the left side of his BC 001.
We know that he needs at least 2,000SVP per week in that leg to reach his goal of “Solid Achiever.”
Since we decided that we are only considering Associate Autoship Orders in this example, we now have to determine how many Autoship Orders need to be processed in that leg in one week to achieve that volume.
In order to do that, we need to first make an assumption on how much SVP is in an “average” Autoship Order. This will vary widely from organization to organization, based on the organization’s leadership, how new Associates are trained, etc. Some teams may have the majority of their organization on 200SVP Autoship Orders, while others may find that the majority of their organization has Autoship Orders of 100SVP. You will need to analyze your organization on DLM to determine what the average Autoship Order volume is for your specific case.
For the sake of George’s example, let’s assume that his organization (current and future Associates) is, or will be, made of an even split of Associates who have 200SVP Autoship Orders and 100SVP Autoship Orders, for an average of 150SVP per Autoship Order.
In order to reach 2,000SVP in one week, George will need to have at least 14 active Associates with Autoship Orders of 150SVP that are processed that week.
But remember, George wants to be a “solid Achiever”, so he will need to have at least 56 (14 X 4) active Associates in that leg in order to generate at least 2,000SVP, on average, in that leg every week of the USANA four week cycle.
Before we go any further, we need to remember that the number of 56 active Associates in one leg was arrived at based on several assumptions.
The first assumption was an average Autoship Order volume of 150SVP. If George happens to have a greater percentage of his team members on 200SVP Autoship Orders, he will need to have fewer active Associates in that leg. Conversely, if a greater percentage of the active Associates are on 100SVP Autoship orders, he will need more than 56 active Associates in that leg.
The other, and very important, assumption was that we did not consider GSV generated by Preferred Customer Autoship Orders, or the volume generated by Points 2 through 5 above. This volume can be very significant, especially during periods of strong growth or momentum, when you and members of your team are actively sponsoring and placing new Associates and PCs in that leg.
In other words the goal of 56 active Associates in that leg is very likely on the high side of what will be needed to reach the target of 2,000SVP per week. However, once George reaches that goal, he can be virtually assured that an average of 2,000SVP will be generated in that leg every week, and that “surprises” such as attrition, cancelled or delayed Autoship Orders, etc. will be more than offset.
Remember that we have only addressed one leg of George’s organization so far, but the process we just completed would apply to the other leg as well, since he needs the same volume in the other leg to reach his goal of “Solid Achiever”.
Armed with this information, George now knows how many more new active Associates he needs to add to his USANA organization, and he can develop a plan, including SDAs, with his team so that everyone is clear on what needs to be done.
What About You?
We’ve helped George determine what he needs to do to reach his goal, but how does that help you?
Well, based on the assumptions we used, you now have a good reference point as to how many active Associates you will need in your organization to reach, and maintain, any USANA pin level.
Since we determined that 56 active Associates will generate an average of 2,000SVP per week over a USANA four week cycle, we can logically deduce that 28 active Associates will generate 1,000SVP.
Therefore, following are the number of active Associates required per leg of a BC to consistently qualify at the following USANA pin levels.
. Builder – 28
. Achiever – 56
. Director – 84
. Bronze Director – 112
. Silver Director – 140
. Gold Director* – 140
• * Requires 5,000SVP per leg of one BC for four consecutive weeks
Remember, these estimates are on the high side. The indicated pin levels can very likely be reached on a “one time” basis with fewer active Associates, however, these estimates will virtually guarantee that the Associate qualifies at these pin levels every week on a consistent basis.
A Word Of Caution
Before you apply the above numbers to your own goal setting and business planning, you should closely review your organization to determine if the assumptions we used make sense for you. For example, you may have some Associates on your team who make a lot of retail sales and generate larger than average volumes, etc.
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Posted by Pete Zdanis