Payment Structure

When a sale of anything is made in any business a profit "Margin" is generated.

With Ei42 we are generally dealing in very small amounts of money, usually just pennies and even down to fractions of pennies. For the purposes of this example though let us assume that one of you has purchased something that has resulted in Ei42 having made a profit margin of £1.00

The first thing we do with that profit margin is pay out any commission. This is what is called a 'cost of sale' In the case of Ei42 we pay out 45% of the profit margin to the person who made the purchase. This percentage does not change. It is always 45% of the margin received by Ei42.

So we started with a £1 margin and we paid out 45p commission. We are left with 55p (55% of the original margin) this is Ei42's money. It is our Gross Profit.

From our company Gross Profit we now profit share an amount that is always equal to the original cost of sale. In this example that is another 45p. This is the money that you can receive as a result of you having referred your friends to Ei42. Without you having recommended that they get themselves a personal Ei42 shop we would make less profit and so because you referred your friends to us we share some of our profits with you. That is why in your admin area you see Friends described as "Power 1", "Power 2" etc and not as level 1, Level 2. Nobody is beneath anyone else and everyone has only the company above them. You simply referred each other to the company, and we use those power numbers to enable us to calculate what percentage of our profit sharing scheme you will each receive.

So let's recap on our example

YOU buy something from your Ei42 shop and as a result Ei42 makes a profit margin of £1.00

We pay 45% of our Profit Margin to you as a commission so you receive 45p

We then have a Gross Profit of 55p

We profit share 45p of our Gross Profit

The following diagram shows what you will receive as part of our profit sharing scheme as a result of the above example. As you can see we have now added percentages below the power multipliers. You’ll notice that those percentages add up to 100% (100% of 45p that we are about to distribute). So now you can simply look and see what you receive of our profit sharing scheme as a result of a person Power 1 through to Power 7 being the person who created for Ei42 the original sale and the original Gross Profit of 45p.

Sale on:
Power 1 you receive 10% of 45p	=	4.5p
Power 2 you receive 04% of 45p	=	1.8p
Power 3 you receive 04% of 45p	=	1.8p
Power 4 you receive 04% of 45p	=	1.8p
Power 5 you receive 04% of 45p	=	1.8p
Power 6 you receive 04% of 45p	=	1.8p
Power 7 you receive 70% of 45p	=	31.5p

We retain 10p of the Gross Profit.

So what do we do with the profit we keep for ourselves?

We maintain and develop everything you see. We manage all of the products and services, we negotiate with the suppliers, update your Ei42 shops daily and prepare and make any payments to you plus a myriad of other stuff that goes into making a business work. We currently employ 7 people to achieve all of this and of course that number will grow as we grow.