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You are here: Home / Archives for Compensation Plans

Compensation Plan Prototyping

October 24, 2024 By admin Leave a Comment

Whenever a compensation plan will be changed, before the changed plan is announced, we need to understand what the effects will be upon the earnings of all of the representatives. “Prototyping” is the term that I use to describe the process to calculate the results of a new compensation plan using historical data. The historical…

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How Do I Attract Top Leaders To My Company?

August 7, 2024 By admin Leave a Comment

If you have an established direct selling or referral marketing company with annual sales of $50 million or more, you are likely to attract top leaders because you have a proven track record. But what if you’re new or your annual sales are less than $50 million?  To attract top leaders, your track record isn’t…

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Why Are Direct Selling Companies Struggling?

August 1, 2024 By admin Leave a Comment

The Pandemic Effect For many direct selling companies, the COVID-19 pandemic was responsible for increases in recruiting and sales, because people were looking for ways to earn money while quarantined. Since the world reopened, the pandemic effect is in reverse, so today most direct selling companies are seeing reductions in recruiting and sales. The pandemic…

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About Compensation Plan Transitions

June 3, 2024 By admin Leave a Comment

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…

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Is It Ever A Good Idea To Pay People Only Through Bonus Pools?

June 3, 2024 By admin Leave a Comment

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…

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Who Should Be Present When A Compensation Plan Is Designed or Improved?

March 26, 2024 By admin Leave a Comment

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…

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12 Key Behaviors For Good Compensation Plans

November 28, 2023 By admin Leave a Comment

A good compensation plan is one of the most important ingredients in the recipe for direct selling success, but what makes a compensation plan good? It is good if it financially and ethically fits your business while motivating and rewarding very specific behaviors from your sales force.  What are these 12 key behaviors?

How Should Retention Be Rewarded?

November 28, 2023 By admin Leave a Comment

As a compensation plan expert, I’ve written extensively about the 12 key behaviors all multilevel compensation plans should motivate and reward. The 12th behavior is staying active and engaged in the business.  This is retention. You may be wondering how a compensation plan should specifically reward retention. What Is Retention? Retention starts with recruiting. If…

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Who Are Your Recruiters?

November 28, 2023 By admin Leave a Comment

Direct selling companies like to count new recruits and they like to count recruiters, too. While the counts of recruits and recruiters are good to know, what is even more important is discovering some very specific information about your recruiters. Data Tells All At Sylvina Consulting, we improve compensation plans, but before we can improve a…

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Be Careful About Income Claims

September 11, 2023 By admin Leave a Comment

Sometimes new or young companies want to show how much income a representative can earn with a good downline. The problem is that at the moment, no representatives with a good organization exist yet. What Should A Company Do? I do not believe it is ever a good idea for a direct selling, referral marketing,…

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Compensation Plan Changes – Best Practices

July 6, 2023 By admin Leave a Comment

Whenever a direct selling company or a referral marketing 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. Does Your Compensation Plan Have Problems? As compensation plan consultants, we can learn about a direct…

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Understand Why People Choose To Sponsor

May 2, 2023 By admin Leave a Comment

One of the most misunderstood behaviors in direct selling is the sponsoring behavior. Sponsoring, also known as recruiting, is the introduction of a direct selling company to a prospective independent sales representative. People choose to sponsor others when it is in their best interest to do so. Why People Sponsor Let’s examine separately each of…

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