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You are here: Home / Recruiting / Master Distributors: Good Or Bad

Master Distributors: Good Or Bad

August 11, 2020 By admin Leave a Comment

A master distributor is the person you put at the top of your genealogy, the one in whose downline every other independent representative will be placed. Master distributors are optional.

Should your company have a master distributor?

In this post, I’ll explain the pros and cons to such an arrangement. Then, you can decide what’s best for your company.

Initial Recruiting

The growth of all direct selling companies depends on recruiting new independent representatives.

In the beginning, most owners of new and young companies do the initial recruiting themselves and they continue to recruit until the number of new recruits enrolled by their independent representatives each month consistently exceeds a target, or until the company’s monthly sales are high enough to conclude the company can stop enrolling representatives.

There is another option, the master distributor option.

Some companies search for a top recruiter with years of experience, one who has previously built a large downline in one or more companies, who is looking for an opportunity to build again, but this time with a special arrangement.  The arrangement includes the privilege of sitting at the top of your company’s genealogy.  In this position, all new representatives will be placed into his or her downline.  This means that the master distributor will earn compensation upon the sales volume of all of your independent representatives for many years.

The person at the top of the genealogy is announced and promoted as the company’s master distributor.  While he or she is an independent representative, the master distributor has a special inside relationship with the home office.

The perception in the field is that if the master distributor believes something the company is doing is good, then it is good for every other independent representative.

The fear in the home office is if the master distributor becomes unhappy with something the company wants to do or has already done, the master distributor will leave, and that some of the top leaders will follow him or her to the next gig.

The master distributor is put into a position of power unlike any other independent representative.  Some people say that having a master distributor is like having a second president.

Do you want to have a second president?

Counting Legs

Several times each year I am asked how many many independent representatives should be front line to a direct selling company.  In other words, how many legs should a company have?

My answer is as many as possible, but I recommend a minimum of 20.  The purpose is to strategically prevent any one independent representative from having too large a percentage of a company’s reps in his or her downline.

Why does this matter?  Some independent representatives whose downlines include a large percentage of the company’s reps realize they have a lot of power which can make company owners nervous, fearful, and concerned.

What Not To Do

If you choose to have a master distributor, make sure he or she is not an owner or employee of your company.  Placing owners or employees into your genealogy is always a bad idea.

Good Or Bad?

Every action we take in business has an associated risk.  Placing someone into the position of master distributor for your company is no exception.

If you have known your master distributor for many years, the risk is lower than if the relationship is brand new.

 

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Filed Under: Recruiting Tagged With: master distributor

About Jay Leisner

P15Jay Leisner, the President of Sylvina Consulting, is a top compensation plan and direct selling expert, a trusted adviser to new and established network marketing and party plan companies. For more than 30 years, Jay has enjoyed assessing and improving party plan and network marketing companies across the globe.

Direct Selling Startup GuideJay Leisner and Victoria Dohr authored the top-rated book for new and young network marketing and party plan companies, "Start Here: The Guide to Building and Growing Your Direct Selling Company".

Available in English and Spanish. This startup guide contains 250 pages of wisdom that will guide you through the right steps to start and continue on your journey to build a successful direct selling company.

You will save thousands of dollars and hundreds of hours of your time using the information you will read in our book.

Direct Selling Edge ConferenceSylvina Consulting and Thompson Burton sponsor the pure education "Direct Selling Edge Conference Webinar" for new and young direct selling companies. The wisest direct selling executives never stop being students. They seek out opportunities to learn more. They understand that the long-term success of their companies depends on how much they know, so they make efforts to keep learning.

Broadcast live and with recordings included for later viewing, this powerful webinar will give you buckets of wisdom and guidance to help you on your journey.

In 1986, Jay began his career in direct selling by working for a major direct selling software provider. First as a software developer and later as a project leader and a business analyst, Jay worked closely with new and established network marketing and party direct selling companies to provide them with software solutions to meet their unique requirements.

Jay contributed in many ways to the success of large implementation projects for many companies. Jay also worked with dozens of smaller companies to assist each of them in various capacities to provide them with the systems they needed to help their businesses to grow faster.

Along the way while working with them, he learned the secrets of successful direct selling companies and the challenges faced by them. In true entrepreneurial spirit, Jay’s decision in 1999 to start Sylvina Consulting as a direct selling consulting company was driven by what he saw was a need for answers, advice, and solutions.

In 2004, 2006, 2009, 2014, and 2018, Jay gave presentations on compensation plans, recognition, and field leadership development at conferences held by the US Direct Selling Association.

He traveled to South Africa in 2015, 2016, and 2017 to conduct workshops on compensation plan design and recognition programs for member companies of the South African Direct Selling Association.

In 2017, Jay spoke at the Canadian Direct Sellers Association Meeting on the importance of recognition.

More than just a compensation plan expert, Jay is exceptionally skilled at advising new and established companies on business strategies. Before offering advice or solutions, he asks important questions to understand each client’s specific concerns and goals.

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