People are asking about safety nets and how SWA Ultimate will make money. They are looking for reassurance that the company will have enough cashflow to sustain its operations. Here are some suggested computations...
Hi! I'm Manny Viloria and before we begin with this financial analysis, please keep in mind that I'm just a regular SWA customer like you. I'm not part of SWA Management, and I do not have info regarding their financial plans.
The following computations are based on publicly-available information...
Access to the SWA Online Library is $55 per customer.
Here's the breakdown of the fees:
Admin Fee - $5
Pay Plan 1 - $30
Pay Plan 2 - $20
For each customer who pays $55, a maximum of $20 is set aside for the Pay Plan 2 commission.
The Pay Plan 1 commissions are set aside for payout for each group of 6 customers. Therefore, a Pay Plan 1 commission of $70 is set aside for payout for every 6 customers.
This means that by the time 6 customers have come in:
Total Sales is 7 x $55 = $385 (The first SWA member + 6 customers)
Less: $5 SWA Admin Fee = ($35)
Less: Pay Plan 2 Commissions of 7 x $20 = ($140)
Amount left for Pay Plan 1 = $210
Amount actually set aside for Pay Plan 1 Commission = $70
In the above example, SWA Ultimate will still have a net cash available for operations (NCAFO) of $140 (that's $210 minus $70). That comes out to $140 divided by 7, or an average of $20 NCAFO per customer.
What about cases where a SWA Member qualifies for a Pay Plan 1 commission, and then is given another SWA Account, which causes that SWA Member's Upline to earn a $70 commission?
Good question! 🙂
For that to happen, that means 10 people became SWA Customers:
Total Sales is 10 x $55 = $550
Less: $5 SWA Admin Fee per customer = ($50)
Less: Pay Plan 2 Commissions of 10 x $20 = ($200)
Amount left for Pay Plan 1 = $300
Amount set aside for Pay Plan 1 commission of SWA Member and that Member's Upline = $140
In this second example, SWA Ultimate will still have a net cash available for operations (NCAFO) of $160 (that's $300 minus $140). That comes out to $160 divided by 10, or an average of $16 NCAFO per SWA customer.
In other words, based on the commission structure of Pay Plan 1 and Pay Plan 2 combined, the SWA Ultimate mother company will still have cash, which can be used to cover operational expenses.
What will help sustain the operations of SWA Ultimate is a steady stream of SWA customers each month.
At 300 new SWA Customers per month (or only 10 new customers a day), and based on the above computation's estimate of $16 average net cash available for operations per SWA Customer, that's $4,800 per month (or P201,600 monthly assuming a forex rate of P42:US$1).
Please take note that we are regular SWA customers like you, and we do not have information regarding the staffing requirements of SWA Ultimate, the Management's financial targets, or even their cost of doing business (e.g., webhosting costs, salaries).
Neither do we have information regarding the actual number of new SWA customers each month.
And please remember that this website you are reading is for informational purposes only. We do not offer any professional nor legal advice, so please be guided accordingly and do get in touch with your accountant or lawyer for professional advice.