At our Direct Selling Edge Conference for new and young network marketing and party plan companies, I presented three sessions on compensation plans. Toward the end of the third segment, I shared with the attendees eight common compensation plan design mistakes. These are very important, so I am sharing them with you now. Too High Rank Qualifications …
Tag Archive: compensation plan
Is Your Compensation Plan Broken?
How do you know if it’s broken? In this post, I will explain the symptoms of a broken compensation plan, but first let’s explore what a compensation plan is supposed to do for your company. Purposes of Compensation Plans Compensation plans should encourage and reward specific behaviors. These behaviors include: Personally purchasing your products or services …
Can We Have A Simple Compensation Plan?
Simple MLM compensation plans are attractive because they are easy to explain. Unfortunately, simple compensation plans don’t motivate all of the behaviors that we want from a direct selling sales force. For example, a compensation plan that provides one level of compensation on the sales volume of others doesn’t motivate representatives to teach people how …
Commission Run Auditing
What 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 …
A Balanced Compensation Plan
A 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 …
Take the 7-Question Compensation Plan Quiz
Compensation 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 …