By Jay Leisner, President, Sylvina Consulting
Most compensation plans include several recognition titles. It is common that the higher titles require progressively more effort and time to earn them.
How do you keep your leaders focused on climbing the achievement ladder when the time between steps increases to months and then years?
As we design compensation plans for home party plan and MLM companies, we are asked for advice on how to address this problem.
Our advice varies based on the goals of the company. Each of the goals below is different. Next to each I have listed some approaches for consideration.
Recognize and reward leaders more frequently
Create several new titles with increasing rewards that will fall in between existing titles.
Add new bonuses or increase the percentages for existing bonuses to reward consultants who meet higher group volume requirements than are needed for their titles.
Encourage an increase in monthly performance
Measure and reward with a bonus a leader whose group volume exceeds her personal best by X%.
Stimulate personal recruitment
Pay a bonus upon each new recruit to her sponsor when the new recruit achieves a specific personal sales volume goal within her first weeks or months.
Push group recruitment
Measure and reward with a bonus a leader whose new active consultant count exceeds her personal best by X%.
Conclusion
Compensation plan development is an art and beauty is in the eye of the beholder. Even so, it is best to begin with the end in mind.
Jay Leisner is President of Sylvina Consulting, a business and software consulting firm with more than 19 years of experience working with over 200 direct selling, home party plan and multilevel marketing companies.
For a complimentary 30-minute consultation or to request our white papers on launching and growing a direct selling company, visit
www.sylvina.com or contact Sylvina Consulting directly at 503.244.8787.
