At Sylvina Consulting, we follow a proprietary 15-step approach to compensation plan design where each step is important.
- Perform a client intake interview to ask questions to understand the client’s business.
- Request cost and pricing information to be able to calculate average, group, and per item multipliers.
- Work with the client to set a total field compensation budget, the largest piece of which will be compensation plan earnings.
- Educate the client on compensation plan types so that the client can choose the type of plan that it likes best.
- Present the 12 key compensation plan behaviors we want from an independent direct selling sales force.
- Explain several recommended ways to motivate and reward each behavior.
- Let the client select from the good choices we recommend to them for consideration, or collaboratively come up with new ways to compensate performance based on client input.
- Create a technical design document that explains all of the business rules of the compensation plan for the software company. This is not a one-page chart. It is a 10-20 page document.
- Model the plan in an Estimated Payout Spreadsheet to estimate the total payout at plan maturity.
- If the total payout exceeds the compensation plan budget, adjust the plan requirements or rewards accordingly to reduce the total payout.
- When the compensation plan design is approved by the client, send the technical design document to the client’s MLM software company.
- Answer the software company’s questions on the plan and review the many versions of its specification document until their document is both accurate and complete.
- Review the client’s compensation plan field documents or create them for the client.
- Audit the results of the first commission runs. Report problems found to the software company and retest after fixes have been made.
- Teach the client how to do the auditing themselves.
Our process ensures that a client receives a compensation plan that fits their business and the priorities of the owners.