Posts Tagged ‘Compensation Plans’
The straight facts on stacking
There are certain compensation strategy problems that we see play out again and again around the industry. Stacking is one of them. It is the bane of level commissions, and it can cripple an organization—distributors who stack take away more money than the compensation plan is designed to pay them, hurting not only the company…
Read MoreThe Role of the Fast Start Bonus
As you’re designing your compensation plan, you may want to consider implementing a fast start bonus. Fast starts are designed to round out your primary commissions—focusing earnings on distributors your basic plan doesn’t automatically reward well. They can reward salespeople for customer acquisition or encourage new distributors to “hit the ground running.” Both versions have…
Read MoreBringing Compensation Plans Into Perspective Part 4
Hybrid Uni-level and the 5% Plus Theory How does a Hybrid Uni-level Compensation Plan create the above- referenced 5% Plus Commission? (See Foundation Principles, 5% Plus Theory.) With this plan, there are only customers and distributors. You can receive retail commission on customers if they’re first level to you. You receive a uni-level commission on…
Read MoreBringing Compensation Plans Into Perspective Part 3
The Three Proven Compensation Plans Over the last 25 years, three predominant compensation plan types have been implemented by select network marketing companies to achieve landslide success: • Breakaway • Hybrid Uni-level • Binary Each of these plans can work and be a good choice. Herbalife, NuSkin, XanGo, Tahitian Noni, Melaleuca, Isagenix and Synergy are…
Read MoreBringing Compensation Plans Into Perspective Part 2
5% Plus Theory The 5% Plus Curve observed in network marketing industry commissions provides a standard for network marketing companies to allocate commission money. The 5% Plus Theory says, in order for a compensation plan to be viable: 1) each upline distributor that receives commissions must receive at least 5%, and 2) a company must…
Read MoreBringing Compensation Plans Into Perspective Part 1
While there are many factors that contribute to the success or failure of direct selling companies, the compensation plan is one of the biggest. The companies who achieve long-term success always have a sound one. Plans that are not well designed and consequently fail to motivate distributors can become a brick wall to company growth.…
Read MoreProblems 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 element of a pyramid is that…
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