• Home
  • About Sylvina
    • The Sylvina Difference
    • Team Members
    • Our Mission
  • Clients
    • Client Letters
    • Words of Praise
    • Client List
  • Consulting Services
    • All
    • For Startups
      • MLM Consulting
      • Party Plan Consulting
    • For Established Companies
      • MLM Consulting
      • Party Plan Consulting
  • Articles
  • Newsletters
    • Free Subscription
  • Industry Events
    • Direct Selling Edge Conference
  • Resources
    • Start Here: The Guide For Building and Growing Your Direct Selling Company
    • Direct Selling Edge Conference
  • FAQ
  • Se habla español
  • Ask A Question

Sylvina Consulting

Compensation Plan & Direct Selling Experts

  • Our Book For New Companies
    • Reviews of Our Book
    • Disponible en Español
  • Direct Selling Edge Conference
    • 15 Reasons To Attend
    • Reviews
  • Compensation Plans
    • Compensation Plan Design
    • Compensation Plan Evaluation
    • What Is A Good Compensation Plan?
  • Business Plans
  • Coaching For Companies
  • MLM Software Advice
    • Evaluation & Selection
    • Implementation Management
    • Software Shopping List
    • How To Be A Good Software Client
    • MLM Software Advice
You are here: Home / Compensation Plans / How Is Your Compensation Plan Doing?

How Is Your Compensation Plan Doing?

March 4, 2018 By admin Leave a Comment

How is your compensation plan doing?

If you quickly answered “fine,” how do you know?  If you answered slowly or not at all, perhaps you’re not sure.

In this post, 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.

Expected Results

The quickest way to ascertain the health of your comp plan is to answer only one question:

  • “Is your compensation plan producing the results you expect from it?”

If you answered “yes”, this means your expectations are being met, but it doesn’t mean necessarily that your plan is doing a good job.  It’s possible your expectations are too low and your sales force performance is equally low.

If you answered “no”, your expectations are higher than the performance of your sales force.  This could mean that your expectations are unrealistic, your compensation plan may not be motivating and rewarding the 12 essential behaviors, or both may be true.

If you’re unsure, it could be because you are not measuring the results properly, or perhaps you don’t have expected results.  In either case, we recommend a compensation plan evaluation to help you to answer this important question.

Driving Behaviors

Compensation plans should be designed to motivate and reward specific activities.  The best way to assess how your compensation plan is doing is to measure it in light of these 12 essential behaviors.

You may be surprised to learn that even the largest network marketing and party plan companies discover important facts about their compensation plans when an analysis is performed on the results.

Direct selling companies of all sizes see improvements in sales and recruiting when their compensation plans are improved.

The budget you’ve allocated for field compensation, as a percentage of sales volume, needs to be spent wisely.

To begin, you must ensure that there are early opportunities for new representatives to make enough money to compensate them for their time and effort from selling your products or services and recruiting and training others.

Business builders must be rewarded for building teams.  Just as individuals should be measured by their personal sales productivity, the sales volume produced by a team should help to determine the rate of compensation for the business builder.

Leaders should be rewarded for identifying and nurturing potential leaders on their teams, even if the potential leaders are not personally sponsored.

The compensation plan’s title promotion requirements should be set in line with your target goals for the percentage of people you wish to attain them.  The higher a representative climbs in title, the more challenging the requirements should be to promote to the next title.

Higher titles can offer larger bonus percentages and/or new bonuses not provided to others.

Each type of commission or bonus should reward at least one of the behaviors listed above.  Similarly, each behavior should be rewarded by one or more types of compensation.

For example, Fast Start Bonuses often reward behaviors #1-4 by incentivizing the recruiting of representatives who generate personal sales volume.

Whenever possible, eliminate paying twice for the same behavior.

To be effective at helping to grow your company, your comp plan must include both volume and structure requirements.

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.

 

 

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Skype (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
  • Click to share on Tumblr (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to email this to a friend (Opens in new window)
  • Click to print (Opens in new window)

Related

Filed Under: Compensation Plans Tagged With: compensation plan, mlm compensation plan, network marketing, Party Plan

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 ThompsonBurton sponsor the two-day pure education "Direct Selling Edge Conference" for new and young direct selling companies in different cities. 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.

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.

Subscribe for FREE to receive our monthly email newsletters.

Topics

  • All Videos (100)
    • Video Collections (3)
  • Ask Victoria (66)
  • Business Plans (22)
  • Canada (1)
  • Communication (31)
  • Compensation Plans (101)
  • Customers (10)
  • Direct Selling Events (40)
  • Enrollment Options (5)
  • Featured (1)
  • Hiring (1)
  • Hostesses (6)
  • Interviews (3)
  • Key Operating Indicators (5)
  • Leadership (13)
  • Legal (23)
  • MLM (24)
  • MLM Software (29)
  • Monthly Fees (2)
  • Party Plan (27)
  • Pilot Programs (4)
  • Podcasts (1)
  • Policies & Procedures (17)
  • Products (11)
  • Recognition (5)
  • Recruiting (16)
  • Retention (10)
  • Social Media (3)
  • Starter Kits (6)
  • Startups (59)
  • Strategies (84)
  • Taxes (2)
  • Training (14)
  • Uncategorized (1)

Most Recent Posts

  • For Your Success, Remain Teachable
  • Introducing New And Improved Products
  • How To Have A Successful Recruiting Culture
  • What’s First? Compensation Plan Or MLM Software?
  • February In Florida Sounds Good
  • What Is Your Company’s Unique Selling Proposition (USP)?
  • Developing A Good Compensation Plan
  • Training Your Independent Representatives
  • Have You Outgrown Your MLM Software?
  • How Do I Know If My Product Is Good For Direct Selling?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Direct Selling Edge Conference

mlm consultant

FREE Reports & Newsletter

Your Direct Selling Bible

"Your book has been my bible! So, thank you again for your insight and wisdom."

Discover The Sylvina Difference

Watch, Listen & Learn

Follow Sylvina Consulting On

  • Facebook
  • Google+
  • LinkedIn
  • Twitter
  • YouTube
Copyright © 2019 Sylvina Consulting, 6663 SW Beaverton Hillsdale Hwy. #205, Portland, OR 97225 USA, 503.244.8787 || Log in

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.