Activity requirements are vital because direct selling companies want their independent representatives to continue selling (and optionally purchasing for personal use) the company’s products and services.
To understand more about why activity requirements are so important, watch our video. We recommend you take notes or take screenshots so you have something to reference back to.
More Compensation Videos
Compensation Plans
Compensation plans should be designed to motivate specific behaviors of independent sales representatives and their retail customers. These behaviors are:
- Personally purchasing your products or services
- Selling to customers (non-participants of the income opportunity)
- Introducing the income opportunity to others (sponsoring/recruiting)
- Building a team
- Training, supporting, and nurturing others
- Becoming a leader
- Personally developing leaders
- Helping other leaders to develop leaders
- Meeting or exceeding minimum activity requirements
- Being promoted to a higher title or rank
- Meeting or exceeding title maintenance requirements
- Staying active and engaged in the business (retention)
Does your plan address them all well?
Compensation Plan Design
Sylvina Consulting designs compensation plans for both new and existing home party plan and network marketing (MLM) companies. We also work closely with MLM software companies on your behalf to implement and audit your compensation plan programming.
We create field documents, PowerPoint presentations, and video scripts for plans we design, or for compensation plans designed by others.
For New Companies
With companies new to direct selling, our approach starts with education. We discuss with you the differences among the various types of compensation plans including unilevels, stair-step breakaways, matrices, binaries, and hybrids. We also explain the pros and cons of each type of plan.
At the same time, we gather information from you regarding your products, your cost of goods, and the preliminary budget as a percentage of sales for total field compensation. All of this information is important so that we can design a compensation plan that meets your goals and priorities.
For Established Companies
If you have an established business and you’re seeking help to amend or rewrite your compensation plan, we take the time to talk with you and listen as you share with us the challenges of the current plan and your goals. Next, we review the requested statistical information to identify any additional areas in your plan in need of attention.
Once the preliminary tasks have been addressed, we move quickly into designing the components of your compensation plan.
Compensation Plan Evaluation
If you have a compensation plan already but need guidance to ensure it is in good shape, we can also help you.
For Established Companies
We offer a results-oriented review of your current or proposed plan, with recommendations included for changes to align the plan with your margins, products/services, and desired sales force behaviors.
Before you announce your new compensation plan, obtain the council of the compensation plan experts at Sylvina Consulting.
For New Companies
If you’ve designed your own compensation plan, but you’re not sure if it will produce the desired results, we can evaluate your proposed plan and provide you with professional advice in the areas in which the plan should be amended.
The Principle of Cohesion
Cohesion is the action of forming a united whole.
Be sure to set your required monthly or annual fee policy, your activity requirement, and your bonus qualified requirement with consideration for each other.
If you’re in need of help with any aspect of your compensation plan or policies and procedures, contact me and we’ll talk confidentially about your needs.
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