CompaniesDid you know that top performing athletes have difficulties seeing their own mistakes?
Unfortunately, the same can be said for direct selling executives.
All top performing athletes each have a coach. Do you have one?
Archive for the ‘Compensation Plans’ Category
Commission Run Auditing
Tuesday, July 20th, 2010What is commission run auditing? Why do it? Who should do it? How do you do it?
What is Commission Run Auditing?
Commission run auditing is a process of many steps to validate that your sales force is paid properly and accurately based on the rules of your compensation plan.
Stated another way, acceptance of responsibility for accurate payments = commission run auditing!
A Balanced Compensation Plan
Monday, March 15th, 2010A balanced compensation plan is a compensation plan that rewards new representatives, business builders, and leaders appropriately for the specific behaviors it is designed to motivate.
Specific Behaviors
All multilevel compensation plans should motivate and reward these specific behaviors:
- Personally purchasing your products or services
- Selling to customers (non-participants of the income opportunity)
- Introducing the income opportunity to others (sponsoring)
- Training, supporting, and nurturing others
- Becoming a leader personally
- Personally developing leaders
- Helping other leaders to develop leaders
- Meeting or exceeding minimum activity requirements
- Being promoted to a higher rank or title
- Meeting or exceeding rank maintenance requirements
MLM Startup Guide
Tuesday, January 5th, 2010If you are starting a network marketing or home party plan company, you may be looking for an MLM Startup Guide and the best resources to help you to create, launch and grow your new business.
Start Here: A Guide for Starting Your Own Home Party Plan or Network Marketing Company is a 250-page workbook that was written to give you a well-grounded start on your new direct selling business. Each chapter includes essential information, a series of thought-provoking questions to direct you to action, examples and suggested next steps.
Take the 7-Question Compensation Plan Quiz
Tuesday, November 24th, 2009Compensation plans should be designed to motivate and reward seven key behaviors.
To find out how your compensation plan is doing, answer “yes” or “no” to each of the following questions:
1. Personal Consumption
Do your independent representatives personally use or consume your products?
2. Sales to Retail Customers
Is the percentage increasing of total company sales to non-participants in the income opportunity?
3. Retention
Is your rate of retention of representatives above average for companies like yours, or if not, is it on the rise?
4. Recruiting/Sponsoring
Are you seeing increases in the percentages of representatives who have recruited at least one person and the percentages of representatives who have recruited at least two people?
5. Supporting Others
Is your compensation plan driving a team-building culture?
6. Becoming a Leader
Do you have an effective Leadership Training Program for all ranks of field leadership?
7. Developing Leaders
Are there sufficient financial rewards and recognition for developing leaders?
If you answered “no” to any questions, you have some work to do.
The first step is to measure the performance of your compensation plan over periods of time in each of the key areas so that you can see clearly what is working for you and the areas in need of positive change.
Are the performance results of your sales force in line with industry averages? Better yet, is your company “beating” industry averages?
Once you’ve identified your targets of opportunity, you can proceed to the next step… adjusting your compensation plan to achieve optimum results.
Be sure to include a transition plan to introduce the plan changes to your field and to minimize the effects on individual representative compensation.
When you encourage and reward properly each of the key behaviors, the success of your representatives will propel your company forward.
Sylvina Consulting can help you to evaluate the performance of your compensation plan and, if needed, to design changes to encourage higher rates of activity, retail sales, retention, rates of recruiting and leadership.
For a confidential, no obligation discussion of your compensation plan needs, contact Jay Leisner at 503.244.8787 or email jay@sylvina.com.
Ask Victoria: When can I use another company’s compensation plan?
Sunday, February 15th, 2009If you are considering using another company’s compensation plan, exactly the same or with a few changes, I would ask you these questions:
Is your
• total budget for field compensation
• understanding of different types of compensation plans
all the same as those of the other company?
