In this video, I will share with you some tips on how to evaluate the performance of your plan. This is important because your largest expense is field compensation. Getting the biggest bang for your buck should be a top priority.
Compensation plans should be designed to motivate specific behaviors of independent sales representatives and their retail customers. These behaviors are:
- Personally purchasing your products or services
- Selling to customers (non-participants of the income opportunity)
- Introducing the income opportunity to others (sponsoring/recruiting)
- Building a team
- Training, supporting, and nurturing others
- Becoming a leader
- Personally developing leaders
- Helping other leaders to develop leaders
- Meeting or exceeding minimum activity requirements
- Being promoted to a higher title or rank
- Meeting or exceeding title maintenance requirements
- Staying active and engaged in the business (retention)
Does your plan address them all well?
Compensation Plan Design
Sylvina Consulting designs compensation plans for both new and existing home party plan and network marketing (MLM) companies. We also work closely with MLM software companies on your behalf to implement and audit your compensation plan programming.
We create field documents, PowerPoint presentations, and video scripts for plans we design, or for compensation plans designed by others.
For New Companies
With companies new to direct selling, our approach starts with education. We discuss with you the differences among the various types of compensation plans including unilevels, stair-step breakaways, matrices, binaries, and hybrids. We also explain the pros and cons of each type of plan.
At the same time, we gather information from you regarding your products, your cost of goods, and the preliminary budget as a percentage of sales for total field compensation. All of this information is important so that we can design a compensation plan that meets your goals and priorities.
For Established Companies
If you have an established business and you’re seeking help to amend or rewrite your compensation plan, we take the time to talk with you and listen as you share with us the challenges of the current plan and your goals. Next, we review the requested statistical information to identify any additional areas in your plan in need of attention.
Once the preliminary tasks have been addressed, we move quickly into designing the components of your compensation plan.
Compensation Plan Evaluation
If you have a compensation plan already but need guidance to ensure it is in good shape, we can also help you.
For Established Companies
We offer a results-oriented review of your current or proposed plan, with recommendations included for changes to align the plan with your margins, products/services, and desired sales force behaviors.
Before you announce your new compensation plan, obtain the council of the compensation plan experts at Sylvina Consulting.
For New Companies
If you’ve designed your own compensation plan, but you’re not sure if it will produce the desired results, we can evaluate your proposed plan and provide you with professional advice in the areas in which the plan should be amended.
Compensation Plan Review
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 plan has major or minor problems.
It’s Your Largest Expense
As a network marketing or party plan direct selling company, your largest business expense is or will be field compensation. It’s larger than employee salaries, rent, monthly MLM software hosting fees, and all other overhead combined. Always remember that.
You can’t afford to pay for the wrong behaviors while not rewarding or skimping on the right ones. However you pay, it’s important to spend your money wisely.
What Is A Compensation Plan Review?
A compensation plan review is an assessment of a compensation plan’s strengths and weaknesses, performed by direct selling compensation plan expert Jay Leisner.
Jay has advised network marketing and party plan direct selling companies for 25 years. More than just a plan expert, Jay mentors Sylvina clients in all areas of their businesses. Before offering advice or solutions, he asks important questions to understand each client’s specific concerns and goals and he listens to the answers.
Jay will read your entire plan document with a focus on both legal requirements and the 12 essential behaviors. He will tell you his concerns and recommend solutions to improve your plan.
Don’t leave your future to chance. Ask the expert; then decide what you’ll do next.
How Do I Get One?
You can have your compensation plan reviewed at no cost to you. Call Sylvina Consulting, or fill out this form to request a compensation plan review.
The End Game
When you’re asked how your plan is doing, your answer shouldn’t be “fine.” It should be “Great because it produces the high results I expect and motivates all the right behaviors.”
For help to improve your compensation plan or other aspects of your party plan or network marketing company, call us at Sylvina Consulting at 503.244.8787 or request a call from us here.