Compensation Plan Changes: Winners and Losers

September 15, 2016 By admin Leave a Comment

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, unless you are only increasing compensation, there will always be some people who will earn less under the new plan than under the old plan.

While you may have identified the reasons for your compensation plan change and the goals to be met as a result of the changes, add to your list the following goals you may have missed:

Minimize the number of losers.
Minimize the amount of loss.

Why Minimize Losers?

How would you feel if your boss cut your pay? Would you be as motivated to work harder than before? Most of us would not be.

By adjusting the rules of the new compensation plan and comparing the income of each representative under the old plan and the proposed new plan, you will be able to see quantitatively how many losers there are and how much loss they will be experiencing.

While we can accept there will be some losers, it is unacceptable to not worry about them or skip the analysis work to minimize the extent of the loss.

Steps For Successful Compensation Plan Changes

Watch this video to learn all the steps you should follow when you are changing your compensation plan.

Want to know more? Here are several articles that explain more about compensation plan changes:

Jay Leisner, the President of Sylvina Consulting, is a top compensation plan and direct selling expert, a trusted adviser to new and established network marketing and party plan companies. For more than 30 years, Jay has enjoyed assessing and improving network marketing, party plan and referral marketing companies across the globe.

Jay Leisner and Victoria Dohr authored the top-rated book for new and young network marketing, referral marketing, and party plan companies, "Start Here: The Guide to Building and Growing Your Direct Selling Company".

Available in English and Spanish. This startup guide contains 250 pages of wisdom that will guide you through the right steps to start and continue on your journey to build a successful direct selling company.

You will save thousands of dollars and hundreds of hours of your time using the information you will read in our book.

In 1986, Jay began his career in direct selling by working for a major direct selling software provider. First as a software developer and later as a project leader and a business analyst, Jay worked closely with new and established network marketing and party direct selling companies to provide them with software solutions to meet their unique requirements.

Jay contributed in many ways to the success of large implementation projects for many companies. Jay also worked with dozens of smaller companies to assist each of them in various capacities to provide them with the systems they needed to help their businesses to grow faster.

Along the way while working with them, he learned the secrets of successful direct selling companies and the challenges faced by them. In true entrepreneurial spirit, Jay’s decision in 1999 to start Sylvina Consulting as a direct selling consulting company was driven by what he saw was a need for answers, advice, and solutions.

In 2004, 2006, 2009, 2014, and 2018, Jay gave presentations on compensation plans, recognition, and field leadership development at conferences held by the US Direct Selling Association.

He traveled to South Africa in 2015, 2016, and 2017 to conduct workshops on compensation plan design and recognition programs for member companies of the South African Direct Selling Association.

In 2017, Jay spoke at the Canadian Direct Sellers Association Meeting on the importance of recognition.

More than just a compensation plan expert, Jay is exceptionally skilled at advising new and established companies on business strategies. Before offering advice or solutions, he asks important questions to understand each client’s specific concerns and goals.

Subscribe for FREE to receive our monthly email newsletters.