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How to Compensate Distributors in Direct Sales

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.

  • December 9, 2010

    International Sponsoring And Commissioning

    If your company is preparing to go international, you need to consider how you will handle international sponsoring and commissioning. You need to consider how your compensation plan will operate in the different types of markets—eCommerce, traditional, and in-person markets. The behaviors you need to rewar... Read more ›

  • November 18, 2010

    Busting MLM myths about recruiting and retention

    When the show MythBusters first came out in 2003, I was instantly drawn to it. I loved the concept: prove whether or not commonly (or, sometimes, not-so-commonly) held beliefs are actually true or if they are merely urban legends. For those of you who may not be familiar with MythBusters, the hosts of the sho... Read more ›

  • October 8, 2010

    $47 Billion Was Paid in Commissions Last Year

    How Much of That Hit the Right Target? Commissions are the single largest expense network marketing companies pay. 41% of all revenue is earmarked to pay commissions in this $114 billion industry. That’s a lot of cash! Is it accomplishing what it’s supposed to, though? Are companies getting the biggest b... Read more ›

  • August 20, 2010

    The Breakaway, Hybrid Uni-level, Binary Differences Part 5

    Note: It has become increasingly clear to me that it's just as important for network marketing distributors to understand MLM compensation concepts as the MLM companies, themselves. Why? Because distributors invest their all into building a downline. The bottom line is if distributors understand MLM commissio... Read more ›

  • August 20, 2010

    The Three Proven MLM Compensation Plans Part 4: Binary

    This is Part 4 in a series of five articles. Note: It has become increasingly clear to me that it's just as important for network marketing distributors to understand MLM compensation concepts as the MLM companies, themselves. Why? Because distributors invest their all into building a downline. The bottom li... Read more ›

  • August 10, 2010

    Designing MLM incentives that work

    If the commission plan is the meat and potatoes of an MLM company, the incentives and promotions are the dessert. Can a company live without these desserts, and should it? That is the $64,000 question that every network marketing company executive and sales leader has to ask themselves. "Give me enough ribbo... Read more ›

  • August 10, 2010

    Mass Recruiting vs. Personal Touch Recruiting

    Mass recruiting vs. personal touch recruiting is probably the most important issue facing companies in the MLM industry today. Why? Because when a network marketing company decides on a commission plan, that plan endorses a method of recruiting. It is important for distributors to be aware of this issue becau... Read more ›