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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

    The Beauty Of The Binary Plan

    MLM program pay plans are a bit like girlfriends or boyfriends. You believe that the one you have is the best! There are lots of MLM or network marketing pay plans. Over the years, I had often heard of MLM programs with a binary pay plan, but I had misconceptions about them, which unfortunately stopped me ... Read more ›

  • May 19, 2010

    Basic MLM Commission Plan Components

    While there are many factors that contribute to the success or failure of MLM companies, the commission plan is one of the biggest. Commission plans that are not well designed and consequently fail to motivate distributors for whatever reason can become a mammoth obstacle to the growth of a network marketing ... 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 ›