If you own or are employed by a network marketing or party plan company, one of your primary goals should be to attract and retain your independent consultants. Direct selling consultants are not employees who report to work each day with regular contact with their supervisors. They are independent contractors who are operating their own…
3 Ways To Set Your Bonus Volumes
As a multilevel compensation plan designer, I work closely with our clients to help them to make many good decisions. One of these decisions is how to determine the bonus volumes for each of their products or services. Bonus volume is the basis upon which multilevel compensation is paid. Another term for bonus volume is…
Karen Speaks: Get More Corporate LinkedIn Followers
by Karen Clark, My Business Presence Company Pages on LinkedIn can only be created by corporations or small businesses whose owners own the business domain, website and have an email address associated with it. When LinkedIn first introduced Company Pages, it seemed like a great idea. Assuming it would be something like the Business Page on…
Ask Victoria: Should Party Plans Worry About Recent FTC Actions?
Most of the sales of products by party plan companies are made to people who are not consultants. In 2015 and 2016, the Federal Trade Commission (FTC) filed orders against Vemma and Herbalife, each of which is a network marketing company. One of their concerns was the lack of customers who were not themselves representatives. Another…
FTC: What Is A Real Customer?
In October 2016, FTC Chairwoman Edith Ramirez spoke for 45 minutes at the DSA Business and Policy Conference about misleading income representations and business structures that are unfair or deceptive because they’re not focused on real sales to real customers. Her remarks were important to hear, as recent FTC actions against Vemma (August 2015) and…
Should We Pay Group Bonuses?
Multilevel compensation plans should motivate and reward 12 specific behaviors. One of these behaviors is becoming a leader. To reward leadership, is it better to pay Group Bonuses upon the volume of the same people, or instead to pay additional compensation upon the volume of other people? The short answer is “it depends.” Understanding Group Volume…
La Guía de Inicio Para Una Empresa de la Venta Directa
Si usted está iniciando o creciendo una compañía de mercadeo de red o reuniones en casa, o seriamente considerándolo comenzar empresa de venta directa, necesita de los mejores recursos para crear, lanzar, y hacer crecer su negocio nuevo. La meta es el éxito, y para ser exitoso necesita hacer muchas cosas bien. Comience Aquí Comience…
How To Slow Down A Runaway Binary Compensation Plan
The binary compensation plan is popular because it does what no other compensation plan type can do, and that is, it pays the upline on an unlimited number of levels of downline volume. How can you do that? Won’t you pay out too much? Unless you put into place a group of measures to…
Ask Victoria: Why Is Recruiting Like Panning For Gold?
Have you ever panned for gold? To me, recruiting is a lot like panning for gold. Everything looks like mud until you look closer. While most of your pan’s contents are mud, there may be little bits of gold in there, too. Don’t Prejudge It isn’t wise to make judgments about people when you first…
Direct Selling: How To Sell Less Profitable Products
As compensation plan experts, we always ask our clients about the costs of their products and services relative to retail or wholesale prices. We’ve written extensively about the importance of the multiplier, the ratio of retail price divided by landed cost. The multiplier and the targeted pre-tax profit for the company determine the funds available…
Compensation Plan Changes: Winners and Losers
If you are thinking about changing your direct selling company’s compensation plan you need to know about the inevitability of winners and losers. Winners are the people who are going to earn more as a result of your changes. Losers are those who will earn less. Why Have Losers? Whenever a compensation plan is changed,…
Utah Attorney General To Speak At Direct Selling Edge Conference
The Attorney General of the State of Utah, Sean Reyes, will be a special guest speaker at the 15th Direct Selling Edge Conference on October 20-21, 2016 in Salt Lake City. AG Reyes will discuss the legal issues within the industry. Then, he will answer your questions. Held since 2011, the Direct Selling Edge Conference…