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 …
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 …
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 …