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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.

  • 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 ›

  • August 1, 2012

    The Three Proven MLM Compensation Plans Part 2: Breakaway

    This is Part 2 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.... Read more ›

  • August 15, 2011

    Keeping Peace With and Between Your Distributors

    Most people think that an MLM's compliance department exists primarily to keep a company from getting in trouble with the FTC and other agencies and to make sure its distributors follow its rules. This is only partly true; the other major purpose for a compliance department is to keep peace between its distri... Read more ›

  • May 6, 2011

    Binaries-Double Trouble!

    Binary plans are relatively simple to understand and offer fast-paced growth opportunities. Companies find them attractive for the same reasons. In addition, several companies utilizing binary plans have recently entered the market and generated eye-popping sales and profits. This, of course, has led to an i... Read more ›