What is a coded bonus?

A coded bonus is not a bonus made by a representative, but rather a bonus received based on being “coded” to another representative. You can also classify it as a “match” 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 codified compensation plan to another, but you should get an idea.

In my company, the first three people you enroll are your foundation code. Your room and beyond are considered your legacy code. In your base code, every time someone in your first three receives a legacy bonus, you receive a 50% match and are also assigned the fourth and beyond (or your legacy).

On your own legacy code, you receive a 100% coded bonus for the people you enroll and your first three people (basically the base code of your legacy code).

So let’s say you enroll Anthony as your fourth person. Keep in mind that in any company you are NOT paid to sign up, you are paid based on the sale of the product. In my example, Anthony came on board as an executive and received a product. You get a $100 fast track bonus, but now you’re coded to Anthony, which means you get a 100% match on his efforts. If Anthony signs up 5 people who get the product, Anthony wins $500, but so do you since it’s a 100% coded bonus match. It is then coded with Anthony’s base code and also gets 100% of his efforts.

So if Anthony’s first registrant is Carol and Carol brings in 4 people who get the product, she’ll get $400, but you’ll also get your code.

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