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Understanding Compensation Plans for MLM

Distributors need to understand commission and compensation plans so that they can maximize earnings. One of the basic elements of compensation is the primary bonus type. Often companies refer to these as binary, unilevel, or stairstep breakaway. Other commission plan types include fast start bonuses and pool bonuses. Once a distributor understands how these basic types work, they can modify their behavior to maximize earnings.

Editor's Picks

  • November 28, 2016

    What you can do about 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 n... Read more ›

  • October 24, 2016

    Your comp plan in a post-Herbalife settlement world

    “What does my company need to do in order to stay off the FTC’s radar?” This is the question on everyone’s mind in light of the recent Herbalife settlement and Vemma action. I’m not an attorney, but as InfoTrax's Vice President of Commissions Operations, I’ve read the court documents for both case... Read more ›

  • August 13, 2016

    The Case for a Chief Compensation Officer

    In the August issue of Direct Selling News, InfoTrax Systems Vice President of Commissions Operations, Kenny Rawlins, makes a compelling argument for the inclusion of a chief compensation officer (CCO) on the executive team of every direct selling company. Last year’s Vemma injunction and the recent Herb... Read more ›

  • July 6, 2016

    Starting an MLM Company That Will Last, Part 2 Compensation Strategy

    Multilevel Marketing is big business. There are dozens of companies (including Infotrax) that sell products and services to MLMs new and old. My company has been supporting companies in the industry for decades. I have seen a lot of companies start: some fail some succeed beyond their wildest expectations, an... Read more ›