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…
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,…
Your MLM Software Company Should Not Design Your Compensation Plan
If your MLM software provider offers to design your compensation plan, you need to know the reasons why this is a bad idea. Conflict of Interest You would like to have a compensation plan designed with your priorities and needs in mind. It should be designed independently of software with the assumption you can get whatever…
Compensation Plans: Why Structure Matters
In compensation plans, there are positions of achievement we call titles or ranks. To qualify for them, independent representatives meet volume and structure requirements. Both are measurements of organizational performance. Volume Requirements A volume requirement is a measurement of volume from (a) an individual independent representative, (b) a group of independent representatives within one’s downline,…
Compensation Plan Conference
How Do You Know If Your Compensation Plan Is In Trouble? The more you know about compensation plans, the better decisions you will make regarding yours. While consulting with and improving hundreds of direct selling companies since 1986, we have seen how compensation plans can motivate and reward the wrong behaviors. One Information-Packed Day At…
Danger Ahead: Enrolling Customers As Representatives
In 2014, I wrote a prophetic post about the need for network marketing companies to have retail customers. Retail customers are people who buy and are not distributors or consultants of a direct selling company. I called this post The Elephant In The Room. If you can, read it first because, in 2016, the elephant is…
Ask Victoria: What Should I Know About My Competitors?
As an entrepreneur, knowledge of the strengths and weaknesses of your competitors can help you to build a stronger business. When you take the time to do research, you’ll learn things you didn’t know, some of which you can use to your advantage. Direct selling companies have three types of competitors: Traditional retail or internet-based…
Are You Thinking About Making Changes To Your Compensation Plan?
Whenever a direct selling company is considering changing its compensation plan, there are reasons that this is happening. Either there are problems that need to be fixed, goals that need to be met, or both. What are these problems? As compensation plan consultants, we can learn about a direct selling company’s problems with their compensation…
Compensation Plan Reviews
At no cost to you, find out if your compensation plan is in good shape, or if it needs to be improved. Ask the experts at Sylvina Consulting. The best time for a Compensation Plan Review is before you obtain MLM software, but even if you already have software, you need to know if your…
MLM Startup Guide
If you are starting or growing a network marketing or a home party plan company, you need the best resources to help you to create, launch and grow your new business. Your goal is success, and to be successful you will need to do many things well. Start Here Start Here is our 250-page direct selling textbook with forms…
Ask Victoria: Why Should You Design Your Compensation Plan Before You Get Software?
You know you’ll need them both, but the order of acquisition matters. If you contract for MLM software before your compensation plan has been designed, you may be diving into the water before you know what’s in the lake. There may be unwelcome surprises waiting for you. Over Budget Most MLM software providers allocate a…