When designing or redesigning a compensation plan, one of the decisions you will need to make is who should be present during the design process. An equally important decision is who should definitely not be present! Let’s tackle the first decision first. We recommend that a small group be gathered that includes the following types…
In Which States Must I Register My Company?
In the USA, most states don’t require that multilevel distribution companies register with them. However, five states require them to file and/or register. If yours is a party plan company, you are still required to file or register if you have a multilevel compensation plan. To be legally compliant in these states, you or your…
What You Should Know About Your 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…
Is It Ever A Good Idea To Pay People Only Through Bonus Pools?
All multilevel compensation plans pay people many ways and most of these plans include one or more bonus pools. Is it ever a good idea to only pay people through bonus pools? Before I answer that question, let’s define what a bonus pool is and then examine the purpose of a bonus pool while discussing…
4 Reasons To Improve Your Compensation Plan
If your compensation plan isn’t producing the results you expect, you either need to improve your plan or lower your expectations. No one wants to lower their expectations; that’s like giving up. There is a better way. A Larger Company To grow your company, your compensation plan should be designed to motivate and reward specific…
About Compensation Plan Transitions
Compensation plans are important. They motivate and reward specific behaviors. But what if your compensation plan isn’t doing that well enough? How do you transition from one compensation plan to another? The short answer is “carefully”, but you need to know more than a one-word answer. In this video, you’ll learn what matters most and…
11 Steps To Programming A Compensation Plan
If you’re like me, when you want something done by others, you want it to be completed quickly. Compensation plan programming is one of those projects that takes longer than we’d like, usually much longer. If you’ve wondered, why this video is for you. Compensation plans should be designed to motivate specific behaviors…
How Much Recruiting Do You Want From Your Leaders?
Recruiting is one of the most important behaviors we want to see from our independent representatives. Without recruiting, your direct selling company’s sales force will shrink. To grow or to stay the same size, all direct selling companies need new recruits. Recruiting can be performed by new representatives, representatives in the business awhile, new…
Can Your Company Grow With Easy Performance Requirements?
Some people who start companies believe that they need to be really nice to their representatives. Their MLM startup or new party plan company is not going to be like the others. Their philosophy is to offer an opportunity that is easy on performance requirements and expectations. The thought is that if we don’t ask…
Compensation Plan Myths
A myth is something many people believe to be true, but it’s not. Sometimes if you believe a myth, you can get hurt. Compensation plan myths are especially dangerous because they can lead to poor business decisions that can kill or wound your company. In this article, we’ll share 6 of them with you. …
What Should I Do About Leaders Who Stop Leading?
Leaders are so important to the success of all direct selling companies. They sell more, recruit more, and stay active in the business longer than the average representative. That’s the good news. The bad news is that, eventually, all leaders stop acting like leaders. Why? There are many reasons and there is a lot you…
Are Leaders Born Or Grown: Why This Matters
There are two schools of thought regarding leadership. One says leaders are born, that is, they have innate qualities predetermined at birth. Leadership is preordained, like eye color. The other school of thought believes that leadership is a skill. Like spelling, leadership can be learned. Everyone wants more leaders, but how do you get them?…