It is now more important than ever before to have customers buying products who are not independent representatives of direct selling companies. One of the questions Sylvina Consulting was asked recently may be a question you’ve asked as well…. If having customers is good for business, why can’t I see all of the customers of…
Your MLM Software Company Should Not Design Your Compensation Plan
If your MLM software provider offers to design your compensation plan, you need to know the reasons why this is a bad idea. Conflict of Interest You would like to have a compensation plan designed with your priorities and needs in mind. It should be designed independently of software with the assumption you can get whatever…
Ask Victoria: What Is Landed Cost?
For a direct selling business to be profitable, it must have healthy gross margins. While margins can be calculated in several ways, at Sylvina Consulting we like to use what we call the “multiplier.” The multiplier is a ratio calculated as the suggested retail price of an item divided by the landed cost of the item…
Compensation Plans: Why Structure Matters
In compensation plans, there are positions of achievement we call titles or ranks. To qualify for them, independent representatives meet volume and structure requirements. Both are measurements of organizational performance. Volume Requirements A volume requirement is a measurement of volume from (a) an individual independent representative, (b) a group of independent representatives within one’s downline,…
About Preferred Customers
“All animals are equal, but some animals are more equal than others.” This is the line I remember from the book, Animal Farm. Substitute customers for animals and you’ll be good. Customers who purchase more frequently and spend more money have a greater value. All customers are not alike. Maximize Customer Value The goal of…
Compensation Plan Conference
How Do You Know If Your Compensation Plan Is In Trouble? The more you know about compensation plans, the better decisions you will make regarding yours. While consulting with and improving hundreds of direct selling companies since 1986, we have seen how compensation plans can motivate and reward the wrong behaviors. One Information-Packed Day At…
Danger Ahead: Enrolling Customers As Representatives
In 2014, I wrote a prophetic post about the need for network marketing companies to have retail customers. Retail customers are people who buy and are not distributors or consultants of a direct selling company. I called this post The Elephant In The Room. If you can, read it first because, in 2016, the elephant is…
Ask Victoria: What Should I Know About My Competitors?
As an entrepreneur, knowledge of the strengths and weaknesses of your competitors can help you to build a stronger business. When you take the time to do research, you’ll learn things you didn’t know, some of which you can use to your advantage. Direct selling companies have three types of competitors: Traditional retail or internet-based…
Are You Thinking About Making Changes To Your Compensation Plan?
Whenever a direct selling company is considering changing its compensation plan, there are reasons that this is happening. Either there are problems that need to be fixed, goals that need to be met, or both. What are these problems? As compensation plan consultants, we can learn about a direct selling company’s problems with their compensation…
Compensation Plan Reviews
At no cost to you, find out if your compensation plan is in good shape, or if it needs to be improved. Ask the experts at Sylvina Consulting. The best time for a Compensation Plan Review is before you obtain MLM software, but even if you already have software, you need to know if your…
MLM Startup Guide
If you are starting or growing a network marketing or a home party plan company, you need the best resources to help you to create, launch and grow your new business. Your goal is success, and to be successful you will need to do many things well. Start Here Start Here is our 250-page direct selling textbook with forms…
Ask Victoria: When Should I Create My Budget?
A budget is an itemized summary of expected income and expenses for a period of time. The most important word in my definition is “itemized.” A budget is not just a total. If you’re starting or growing a direct selling company, the odds are high that your funds are limited. You can’t afford to…