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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.

  • October 12, 2015

    Problems The FTC Sees In “Pay To Play” Commission Plan

    The FTC's primary cause of action alleges that business practices constitute unfair and deceptive trade practices and are therefore a violation of Section 5 of the FTC Act. The FTC is ultimately seeking to prove that the program is a pyramid because all pyramids are inherently deceptive. The fundamental eleme... Read more ›

  • September 23, 2015

    Back to the Breakaway?

    One of the key arguments in the recent Vemma versus the FTC case was about the use of personal volume (PV) requirements for compensation qualification. The FTC contends that compensation must be paid on the sale of product and not on recruitment. If PV is required for compensation, then it is unclear if the ... Read more ›

  • September 3, 2015

    Binary Compensation Plan

    We sat down with Ray Rawlins, commission programmer of more than 40 years, to get his insights about binary plans. How do they work? What variations have been seen in the industry? What bonuses are they often supplemented with? How are they programmed? Let’s find out! https://youtu.be/XUl7_wTHo9A Bina... Read more ›

  • March 26, 2015

    The Perfect Compensation Plan (Part 2)

    I’ve been working with MLM companies and compensation plans for over 30 years, and one common misconception is that there is a “Perfect Compensation Plan” that would work for any company. There are several reasons as to why there is no perfect compensation plan; and in my next few posts I will discuss s... Read more ›