LinkedIn Twitter Facebook RSS Feed

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.

  • November 23, 2021

    Two Questions to Revolutionize Your MLM Compensation Plan

    What does it mean for an MLM compensation plan to be a success? Do you know the answer? Sadly, you can’t just look at whether your company is growing to know if you’re paying people correctly. Sometimes, excitement for your product or your company culture itself can cause your field to grow like wild... Read more ›

  • February 26, 2018

    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’re going to talk about the rules that determine when and how distributors advance through the ranks and qualify for monthly commissions. Your rules answer the question “What do I need to do each month to b... 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?

    When the industry went through the great shake-up in the 1980s, binaries were one type that survived. It is important to talk about binary because there are some successful ones in the industry. However, they are going down in popularity. When it arrived on the industry scene, this type of plan was the compl... 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 15, 2018

    Analyzing your compensation plan

    Podcast episode 19

    Mark Rawlins, Founder and CEO of InfoTrax Systems, joins Kenny to talk about MLM compensation plans. What direction is the direct selling industry going on compensation? What’s the perfect compensation plan? How do you know if your direct sales commissions are working? How can you use data and analytics... 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 ›