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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.

  • May 19, 2010

    Five Steps Of MLM Commission Plan Design

    As with any complex task, it is best to break designing an MLM commission plan down into small steps and tackle them one at a time. The five steps of commission plan design include: Establish your MLM company’s mission, product and service strategy, and intellectual distribution strategy. Intellectu... Read more ›

  • May 19, 2010

    Crossing the MLM Desert

      When the pioneers headed to California in the days of the old West, they came upon the huge deserts of Nevada, containing little water and no food. These deserts took days to cross. At the edge of the desert, the pioneers discarded anything they could, loaded up on water, and headed out as fast as t... Read more ›

  • May 19, 2010

    MLM Distributor Viability

    In the MLM world, a commission plan is about figuring out how to create a framework where distributors do the least amount of work—the most important work—for the maximum amount of earnings. The plan must be designed to allow distributors to reasonably meet qualifications and rank advancement rules. T... Read more ›

  • May 19, 2010

    Determining MLM Compensation

    How does an MLM company pay its sales force for the behavior it desires? How much should payout be? How much can the company afford to pay out? For $1,000 of product sales, should the payout be $60? $100? $200? Pricing The pricing methodology of an MLM company’s product line has a lot to do with i... Read more ›