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Compensation strategy

Good compensation plans are designed to reward the behavior that helps build and maintain product sales. Each compensation plan is composed of multiple commissions, each filling a different role, rewarding a different behavior. Companies need to understand the advantages to each type of commission and build a successful strategy that meets the needs of every type of distributor that will profit their organization.

  • November 28, 2016

    The Straight Facts on Stacking

    There are certain compensation strategy problems that we see play out again and again around the industry. Stacking is one of them. It is the bane of level commissions and it can cripple an organization—distributors who stack take away more money than the compensation plan is designed to pay them, hurting n... Read more ›

  • August 13, 2016

    The Case for a Chief Compensation Officer

    In the August issue of Direct Selling News, InfoTrax Systems Vice President of Commissions Operations, Kenny Rawlins, makes a compelling argument for the inclusion of a chief compensation officer (CCO) on the executive team of every direct selling company. Last year’s Vemma injunction and the recent Herb... Read more ›

  • July 6, 2016

    Starting an MLM Company That Will Last, Part 2 Compensation Strategy

    Multilevel Marketing is big business. There are dozens of companies (including Infotrax) that sell products and services to MLMs new and old. My company has been supporting companies in the industry for decades. I have seen a lot of companies start: some fail some succeed beyond their wildest expectations, an... Read more ›

  • March 26, 2016

    Bringing Compensation Plans Into Perspective Part 4

    Hybrid Uni-level and the 5% Plus Theory How does a Hybrid Uni-level Compensation Plan create the above- referenced 5% Plus Commission? (See Foundation Principles, 5% Plus Theory.) With this plan, there are only customers and distributors. You can receive retail commission on customers if they’re first leve... Read more ›

  • March 25, 2016

    Bringing Compensation Plans Into Perspective Part 3

    The Three Proven Compensation Plans Over the last 25 years, three predominant compensation plan types have been implemented by select network marketing companies to achieve landslide success: • Breakaway 
• Hybrid Uni-level • Binary Each of these plans can work and be a good choice. Herbalife, Nu... Read more ›

  • March 24, 2016

    Bringing Compensation Plans Into Perspective Part 2

    5% Plus Theory The 5% Plus Curve observed in network marketing industry commissions provides a standard for network marketing companies to allocate commission money. The 5% Plus Theory says, in order for a compensation plan to be viable: 1) each upline distributor that receives commissions must receive at le... Read more ›

  • March 23, 2016

    Bringing Compensation Plans Into Perspective Part 1

    While there are many factors that contribute to the success or failure of direct selling companies, the compensation plan is one of the biggest. The companies who achieve long-term success always have a sound one. Plans that are not well designed and consequently fail to motivate distributors can become a bri... Read more ›