MLM profit calculator
Your commission statement shows what the company paid you. It leaves out what you paid the company and everything else you spent. Put both sides in and see what is left for your time.
Why a commission cheque is not profit
Most MLM income disclosure statements report gross compensation: what the company paid out before any of your expenses. Your profit is that figure minus the product you bought to stay active or hit a bonus level, plus whatever you spent on samples, shipping, events, website fees and travel.
Count the monthly order only to the extent you would not have bought the product anyway. If you would buy the same shampoo at the same price without the business, it is a household cost. If you buy it to keep your rank, it is a business cost.
Where to find your numbers
Commissions and bonuses are in your back office or on your commission statements. Your purchases are in your order history. Everything else is in your bank and card statements, so go through the last three months and add up anything you spent because of the business.
If the hourly figure is below what a part-time job pays where you live, the business is costing you money in a less obvious way: the hours could be paid somewhere else.
Questions people ask
How do I calculate my real MLM profit?
Add your commissions, bonuses and retail markup, then subtract the product you bought to stay active or qualify, plus samples, shipping, events, fees and travel. Set aside tax on anything left, then divide by the hours you worked.
Do MLM income disclosure statements include expenses?
Usually not. Most report gross payments from the company before the participant's own costs, so your profit will be lower than the figures shown.
Should I count products I use myself as a cost?
Count the part you buy to stay active, keep a rank or reach a bonus. Product you would have bought anyway at the same price is a household cost, not a business cost.
Keep going