Compensation Plans

March 23, 2022

Designing qualifications for distributor ranks and commissions

When you design a compensation plan, there are a lot of details that you have to get right. Today we talk about the rules that determine when and how distributors advance through the ranks qualification for monthly commissions. Your rules answer the question “What do I need to do each month to be paid as a ... Read more ›

February 13, 2018

Compensation Plan Payout

Compensation plan payout is one of the biggest factors that contributes to the success or failure of a direct selling company. The companies who achieve long-term success have a sound plan that pays the right people. Plans that are not well designed fail to motivate distributors and ultimately stall company g... Read more ›

January 29, 2018

What’s a Binary Compensation Plan?

The binary compensation plan is the newest of the three common plan types. When it arrived on the industry scene, this type of plan was the complete opposite approach to commissions than existing plans. The difference was night and day. Before the binary emerged, every other compensation plan relied on the fo... Read more ›

January 22, 2018

What’s a Unilevel Compensation Plan?

The unilevel compensation plan was the first plan to challenge the dominance of the breakaway plan. It came on the scene in the mid 90s, and its inventors intended it to be a simpler and fairer plan that was easier to understand. But over the years, unilevels have come to be just as complex as breakaways. Th... Read more ›

January 9, 2018

What’s a Breakaway Compensation Plan?

Breakaway compensation plans are the oldest of the three common compensation plan types. They’ve been around since the 1970s. To this day, they’re the most popular compensation plan among party plan companies. A breakaway compensation plan uses two primary bonuses and two defined sales force classificatio... Read more ›

January 18, 2022

Podcast 19:Analytics of Your Compensation Plan

Mark has recently started a compensation design and analytics company, mlm-cc. In this episode, Mark discusses his philosophy behind compensation analytics. Mark Rawlins, Founder of MLM-CC, joins Kenny Rawlins to talk about MLM compensation plans. What direction is the direct selling industry going on com... Read more ›

March 9, 2022

The 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 ... Read more ›

December 4, 2017

Is it time to change your compensation plan?

Mitch Stowell, Vice President of Commission Consulting at InfoTrax Systems, joins us for this two part episode to discuss the process of fine tuning compensation plans over time. How do you know when it’s time to change your commissions? What do you change? Mitch and Kenny talk over these critical d... Read more ›

December 18, 2017

Is it time to change your compensation plan? (Part 2)

Mitch Stowell, Vice President of Commission Consulting at InfoTrax Systems, joins us for this two part episode to discuss the process of fine tuning compensation plans over time. How do you know when it’s time to change your commissions? What do you change? Mitch and Kenny talk over these critical d... Read more ›

August 13, 2015

MLM plans: the Three Types

There are three common types of MLM plans: breakaway, unilevel, and binary. With a unilevel plan, distributors can put a lot of people on their first levels and they can build as many legs as they want. With a binary plan, distributors can only have two legs. In a breakaway, rather than legs, you build a team... Read more ›