Compensation Plans

One of the most important decisions a company will make is the type of compensation plan they will use. There are certain types of behaviors a plan should reward and yet how these behaviors are rewarded determines the type of distributors you attract and the kinds of activities you encourage. Every company should answer some specific questions prior to designing a plan.

Here are a few examples:

Are you a Party Plan or and pure Network Marketing Company?

Is your product or service primarily sold to a retail customer or to distributors?

What kind of a company do you want to be? What is your culture going to be like?

What behaviors are you trying to drive through your compensation plan?

How much margin do you have in your product line?

If your product costs you $1.00 then how much can you sell it for at retail and still have customers buy it?

Are you trying to grow organically or are you trying to attract existing leaders?

These and many more are critical questions to answer before you design your compensation plan.

At Direct Selling Today we have experience in designing all of the major compensation plan types: Stair-step Breakaways, Unlievel/Generations, Binary, Matrix and many combinations. We can take you from the design stage right through the sign-off document with your software vendor.

Designing a compensation plan is very complicated. Can you do it on your own? Yes? Can you miss some of the most critical parts of a compensation plan? Guaranteed.