I continue to see some employees denying that NHCD is a pyramid scheme. Granted, most of these are on salary because they've been with the company forever, but I'd like to lay out a few facts about manager's pay scales to put this issue to rest once and for all. Before I start, and before the insults start, let me just repeat that I was a past manager for NHCD, did not get fired, am not a disgruntled employee (what do I have to be disgruntled about—I have my own business and left to pursue it), I'm just trying to help people make the decision whether to work for this company. I'm tired of the lies, threats, and deception that take place on a daily basis within NHCD and I'm not the type of person to let it continue. I honestly hope these posts will help change the way this company operates.
Ok, enough of that. Let's do a math lesson.
When managers start, they are given hires from the company as long as they meet the companies' production goals, recruiting goals, whatever area they are pushing at that time. They are responsible for training these reps, answering their questions and getting them into production. They are expected to have a 20% active percentage, meaning that 20% of their assigned reps should be producing every week, with a return ratio (leads sent back by Sales for whatever reason) less than 20% for each rep. Sounds easy, but in reality it's a mess. But we'll get into that another time. Here comes the math.
For simplicities' sake, let's say a manager has 50 reps on their team.
50 reps x 20% active = 10 reps with at least one lead per week.
The powers-that-be say each manager should set a goal for a minimum of 10 leads per week per rep so:
10 reps x 10 leads = 100 group leads (pretty standard if you're lucky and you've been there a long time)
100 group leads - 20% return rate (again very generous) = 80 actual leads for a manager's weekly paycheck.
Manager's are paid by what their reps produce any personal leads or recruits so:
80 x $1.50 per group lead = $120/week.
Let's take this a step further. Since no one I know want's to work 60 hours/week for $120, or $2 an hour (even at 40 hours that's equal to $3 an hour), let's add on some personal production to make our paycheck look a bit nicer.
25 personal leads x $4 a lead (some manager's are at $6) = an extra $100 weekly. That's a very generous lead count since most managers barely have time to produce 10 leads a week. It all depends on how many trainings and meetings you're stuck attending and whether NHCD is recycling their numbers (happens constantly).
We're up to $220/week, (not bad for a part-time job but manager's are NOT working part time) $5.50hr @ 40 hours or $3.66 @ 60 hours. Still sound wonderful? Of course manager's get an override for any recruits hired by someone on their team, or any sales generated on the inbound line from one of their lead reps, but not enough of a difference to figure in.
So how is it there are manager's that have been with this company for so long? They put them on a salary after they've been around quite awhile, then work their tails off. Even a manager I know pulled $30,000 in a year, working at least 60 hours a week, at all hours of the day, at approx $10/hour (I even figured in 2 weeks vacation!). Not so hot for the amount of effort put in and the constant pressure you're under. And as a W2 employee at this point, they can pretty much do what they want with you.
Does everyone see the pyramid here? It goes like this:
Lead rep pays manager, who pays their original manager, who pays the senior manager, who pays Grant. It's a very well-disguised pyramid and NHCD will deny it's existence when asked about it. Sound like an MLM to you? You are paid off your recruits and leads, your manager is paid off you, his/her manager is paid off them, and Grant is paid by all. Whew! Enough for now.
Ex-
Los Angeles, California
U.S.A.
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