A Payout Cap is part of all binary compensation plans, and has been part of LifeWave’s plan since the very beginning. We offer one the most generous commission plans in the industry, but it’s a good idea to review what the payout cap is, why it exists and how it’s calculated.
Since the volume credit in a binary compensation plan goes to infinite depth, it drives commissions up to infinitely high amounts as well. For that reason, there must be a system limitation on this calculation (Payout Cap).
LifeWave’s Payout Cap is 60% of the total BV that comes through the system in any commission week. For example, if the total BV in a commission week amounts to 100,000 points, the total commission payout for cycle pay and matching bonuses combined is $60,000.
The Payout Cap is only applied to cycle pay and matching bonuses, and we always exempt the first four cycles. For more information, please contact LifeWave Customer Service.