If your MLM software provider offers to design your compensation plan, you need to know the reasons why this is a bad idea.
Conflict of Interest
You would like to have a compensation plan designed with your priorities and needs in mind.
It should be designed independently of software with the assumption you can get whatever you want, because the compensation plan will be built for the specific needs of your company. Your plan may have some unique aspects to it, because you want your plan to be different from other plans. If after your plan has been designed, it may need to be adjusted due to software limitations, that bridge will be crossed then. When it is first designed, the needs of your company should be put first.
Because they will be programming your plan, your software company would like to provide you with a compensation plan that requires a minimal amount of work on their end. So, they will design your plan with full consideration of what their software does and does not do. When an MLM software company designs a pay plan, it will put the needs of their business first ahead of the needs of your business, because it is in their best interest to do so.
Can you see the conflict of interest?
You Want The Best
You would like to have your compensation plan designed by a top compensation plan expert.
The top compensation plan experts don’t work for MLM software companies. This is because top compensation plan experts work with clients who are free to select the MLM software companies of their choice.
Do you want to select a great MLM software company? Do you want to work with a top compensation plan designer? Can you see how these decisions should be made independently of each other?
The Design Process Matters
Compensation plans are not commodities where everyone has basically the same level of skill and follows the same steps when a compensation plan is designed.
When an MLM software company designs a plan, often the client is not consulted during the design process. Instead, the client waits patiently for the software company to send a document that describes the compensation plan the software company recommends.
A top compensation plan expert would never deliver a first draft of a compensation plan to a client without working with the client for many hours in the design process.
At Sylvina Consulting, we have a 15-step approach to compensation plan design.
Can you see how the design process differs? Which do you prefer, the top compensation plan expert 15-step approach, or the process used by MLM software companies?
Most MLM Software Companies Don’t Design Compensation Plans
Did you know this fact? Only a few MLM software companies design compensation plans.
Almost all MLM software companies refer their clients and prospects to compensation plan experts, just like nearly all compensation plan designers don’t provide software to their clients.
Each one does what they do best. Do you want the best in both?
Maximize Your Odds
Starting a business, any business, is a risky proposition, as most businesses don’t survive to their 5th birthday.
When a direct selling company chooses to have its MLM software provider design its pay plan, you are putting your business at a higher risk for failure.