If you are considering the “Decision to Transition” your present compensation structure to an MLM model, please take note!
Today’s best mlm pay plans must address the following:
- Cost of new distributor entry sales kit should be modest making it easy to get started.
- Early payout of initial commissions and bonuses paid weekly or bi-weekly is becoming the norm.
- A good plan provides bonuses balanced between the beginning MLMer who is just trying it on for size, the committed part time business builder who is building an organization through multiple levels, and the totally committed leader who can benefit from bonuses from sales generated by a significant downline community.
- Distributor monthly maintenance qualifications to receive downline organization bonuses should be reasonable and achievable for the consistent part timer as well as the dedicated and committed full time participant.
- Program should incorporate Auto-Ship ordering programs with a bonus volume relationship to monthly distributor qualifications.
- Plan should mandate distributor minimum personal retail sales while rewarding for building an organization in depth.
- A “Plus” plan. This means that there are no sponsor disincentives created by lost or reduced centers of profit as the downline advances that might encourage leaders to suppress downline advancement. All earned bonus levels are in addition to those previously earned, never in place of them.
- Distributor ranks and titles should be permanent once received, but distributor bonuses should be “Paid-as” the position for which they actually qualify during the pay period.
- Compression of levels or generations should occur to properly reward performers through maximum depth of income stream.
- The plan should be “Capitalistic” in its design to reward the business builders who contribute regularly to the company growth. Beware of plans that are “socialistic” in design dividing available profits among many and encouraging a something for nothing philosophy.
