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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.

  • January 12, 2015

    The Three Proven Commission Plans – Part 3: Hybrid Uni-level

    Most of the MLM commission plans that are called Uni-levels today are actually Hybrid Uni-levels. Typically, the Uni-level Plan is the backbone and then other commissions like fast starts and/or pool bonuses are added to increase earnings. So, this Plan features a level commission as the primary commission. S... Read more ›

  • September 26, 2014

    Mobile Payment Systems for Direct Selling and Party Plan Distributors

    One of the most exciting things happening today in credit card processing is the use of a shared corporate merchant account. There is now a credit card processing partner that helps ease the pain of qualifying for a merchant account. The credit card processing providers at ProPay have created partnerships wit... Read more ›

  • April 3, 2014

    The Perfect Compensation Plan

    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 is no perfect compensation plan, but there is a golden rule which, when applied, will create favorable compens... Read more ›

  • October 25, 2013

    MLM: What’s Your Type?

    Everyone involved with an MLM falls into one of two types. You're either a customer or a distributor. Every company needs both customers and distributors to make a profit and to remain legal in the eyes of regulatory bodies. Within each of these types there are sub-types, and once again your company ne... Read more ›

  • October 4, 2013

    The Three Proven Commission Plans – Part 5: Breakaway, Hybrid Uni-level, Binary – Differences

    If you don’t really understand the differences between the three proven commission plans in the MLM industry--Breakaway, Hybrid Uni-level, and Binary--you should! So, here you go—study up, and then when you have a chance, further consult with people who understand the differences like the back of thei... Read more ›

  • September 27, 2013

    The Three Proven Commission Plans: Part 1

    “What is the world’s best network marketing commission plan?” you ask. By now, if you’re like most people in the MLM business, you just want to know what network marketing commission plan works the best. Of course, the problem is that each of today’s three predominant commission plan types has b... Read more ›

  • September 17, 2013

    Can You Support Your Compensation Plan?

    One of the most important questions to ask as you are designing your compensation plan is, can you support it? Can you afford the staff, technology and field expenditures necessary to support it? Is it duplicable, and if so, do you have the bandwidth to do what is necessary to get the ball rolling and tra... Read more ›