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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.

  • June 15, 2010

    The Binary & The Law: A Guilt by Association

    The legality of a network marketing opportunity has little to do with the design of their compensation structure and everything to do with the motivation for buying their products. Every type of compensation plan, be it binary, matrix, unilevel, breakaway, or Aussie 2-up, has it's advantages and disadv... Read more ›

  • June 10, 2010

    The Three Proven MLM Compensation Plans Part 1: Overview

    This is Part 1 in a series of five articles. “What is the world’s best MLM compensation plan?” you ask. If you’re like most people in the MLM business, you just want to know what network marketing compensation plan works the best. The fact is that over the last 20 years, there have been three p... 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

    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

    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 ›