Compensation Plans: How Much To Reveal

March 5, 2015 By admin Leave a Comment

One of the decisions you will need to make for your direct selling company is how much of your multilevel compensation plan you will reveal to the general public on your website.

Interestingly, the decisions companies make are made for different reasons. In this post, we’ll examine the choices available to network marketing and party plan companies and why each of these options may be chosen.

The Choices to Explain Your Compensation Plan

Keep It Hidden

Some companies choose to not display publicly any information whatsoever on their compensation plan. The reasons given for this choice are usually (a) our plan is a trade secret so we don’t want anybody to copy it or (b) our plan is complicated and we don’t want to scare away any prospective reps who may be confused if they read our plan without someone there to explain it.

Did you know that your compensation plan is not a trade secret? Anyone who wants to get a copy of your compensation plan merely needs to signup as a rep to get a copy. So, I don’t believe this reason is a good one.

The second reason is valid if you don’t have a good compensation plan field document or presentation that explains how your plan works. However, since every direct selling company should have a clear field document, I don’t accept this excuse, either.

Here are two great reasons not to hide your compensation plan from the public:

Some people believe that if a direct selling company hasn’t published its compensation plan to the public, they are hiding something they don’t want the outside world to see.
If a prospective rep is considering joining your company or another company and he or she can’t find your compensation plan on your website, it’s possible that you won’t be chosen.

Make It Brief

Other companies choose to display an abbreviated version of their plan which may include (a) a list of ways you can get paid, (b) details on what the first few titles in the plan can earn, or (c) a chart that contains columns and rows of title qualifications and rewards without definitions and examples.

This approach is usually chosen as a compromise between those in the company who want to display nothing and others who would prefer to explain it all.

So, what does this approach accomplish? It gives prospective representatives a glimpse of the compensation plan that leaves them wondering, confused, or frustrated. These are not feelings I would wish upon people who are thinking about joining my company.

Share It All

The wisest of companies choose to share their entire plan in a place on their websites that is not password protected. They present the plan in different formats which may include a field document, a PowerPoint presentation, and/or a video.

In the compensation plan content, they make references to the company’s mission, culture, and opportunity. In other words, they use the compensation plan presentations not only to explain how they pay their representatives but to share the other benefits offered by a great company.

Your Choice

So, now you know your choices. Make yours a good one!

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.

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