This is the first in a new series of compensation plan articles, each of which will focus on one important element to be considered in the design or improvement of each and every multilevel compensation plans. The topic of this compensation plan article is compression. Compression is a term used to describe the action of… [Read More]
Direct Selling: Are You A Bad Actor?
I bet you haven’t been asked this question before. At the Direct Selling Association Annual Meeting in Orlando this month, President Joe Mariano talked quite a bit about bad actors. A bad actor is a direct selling company that is operating illegally or unethically, or both. How do you know if your business is a… [Read More]
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… [Read More]
Are Simple Compensation Plans Safer?
At our Direct Selling Edge Conference this month, I was asked if simple compensation plans were safer. Before giving my answer, I took a big breath and then gave myself a few moments for an additional pause. This was an important question with an even more important two-part answer. A Legal Perspective Given the regulatory action… [Read More]
3 Ways To Set Your Bonus Volumes
As a multilevel compensation plan designer, I work closely with our clients to help them to make many good decisions. One of these decisions is how to determine the bonus volumes for each of their products or services. Bonus volume is the basis upon which multilevel compensation is paid. Another term for bonus volume is… [Read More]
Should We Pay Group Bonuses?
Multilevel compensation plans should motivate and reward 12 specific behaviors. One of these behaviors is becoming a leader. To reward leadership, is it better to pay Group Bonuses upon the volume of the same people, or instead to pay additional compensation upon the volume of other people? The short answer is “it depends.” Understanding Group Volume… [Read More]
La Guía de Inicio Para Una Empresa de la Venta Directa
Si usted está iniciando o creciendo una compañía de mercadeo de red o reuniones en casa, o seriamente considerándolo comenzar empresa de venta directa, necesita de los mejores recursos para crear, lanzar, y hacer crecer su negocio nuevo. La meta es el éxito, y para ser exitoso necesita hacer muchas cosas bien. Comience Aquí Comience… [Read More]
How To Slow Down A Runaway Binary Compensation Plan
The binary compensation plan is popular because it does what no other compensation plan type can do, and that is, it pays the upline on an unlimited number of levels of downline volume. How can you do that? Won’t you pay out too much? Unless you put into place a group of measures to… [Read More]
Direct Selling: How To Sell Less Profitable Products
As compensation plan experts, we always ask our clients about the costs of their products and services relative to retail or wholesale prices. We’ve written extensively about the importance of the multiplier, the ratio of retail price divided by landed cost. The multiplier along with the targeted pre-tax profit for the company determines the funds… [Read More]
Compensation Plan Changes: Winners and Losers
If you are thinking about changing your direct selling company’s compensation plan you need to know about the inevitability of winners and losers. Winners are the people who are going to earn more as a result of your changes. Losers are those who will earn less. Why Have Losers? Whenever a compensation plan is changed,… [Read More]
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