Compensation Models in Business Network International (BNI): Do Directors and Franchisees Get Paid?
Do BNI Directors Get Paid?
Business Network International (BNI) is a renowned organization focused on building referral networks for business professionals. In BNI, roles such as directors, members, and franchisees play crucial parts in the organization's success. However, one common question many potential and existing members ask is, 'Do BNI directors get paid?' The answer is not straightforward and varies based on the specific structure and agreements within each BNI chapter.
Director Compensation in BNI
In BNI, the directors typically do not receive a salary from the organization. Instead, they earn income through various methods, including commissions and bonuses based on the performance of the chapters they oversee. This performance is typically measured through member referrals, attendance rates, and overall chapter success. Some directors may also charge fees for providing training or consulting services to BNI members, which can add to their earnings. The exact compensation structures can vary significantly by region and specific agreements. Therefore, it's best to consult with local BNI chapters or leadership to get detailed information.
Franchisee Payment in BNI
While the BNI director position is not a paid role, there is another layer of compensation within the organization. In India, for instance, BNI franchisees can earn a commission on every new member brought into a chapter. This commission can be substantial, as outlined below. Additionally, franchisees may receive additional income from other sources, such as charging fees for organizational services or benefiting from meeting expenses.
Franchisee Income in BNI
In BNI, franchisees are paid a commission on every new member joined into the chapter. For example, in India, the joining fee for a new member is around 32,000 INR. A typical chapter might consist of a maximum of 50 people, so the director can sit on a corpus of 1.6 million INR. Out of this, around 40% is paid to the director. Therefore, the director would receive around 640,000 INR when a new chapter is launched with a full complement of 50 members.
Furthermore, each meeting in a BNI chapter is often held in a 5-star property where each member pays for breakfast, which costs around 600 INR per week. The franchisee might also receive a cut of around 20-25% from the hotel. This cut can amount to around 30,000 INR.
So, the total income for a franchisee in this scenario can be substantial. For instance, if a new chapter with 50 members is launched, the initial payment to the franchisee would be 640,000 INR. In addition, if 25% of the members attend a meeting each week, the weekly cut from the hotel would be approximately 75,000 INR, leading to a year-end total of around 30,000 INR per year from meeting expenses.
Conclusion
BNI directors and franchisees can generate significant income through different channels. While the director role itself is not a paid position, the franchisee role can provide substantial earnings, particularly in regions like India. The compensation model in BNI is complex and depends on various factors such as the region, local agreements, and specific business needs. For individuals looking to get involved in BNI, understanding these compensation models can help them make informed decisions about their participation in the organization.