Why Do People Design Simple Compensation Plans?

February 17, 2016 By admin Leave a Comment

Simple compensation plans have only one virtue and that is, that they are easy to explain. Everything else about them isn’t good.

Have you ever wondered, then, why do people design simple compensation plans? The reasons might surprise you.

Complexity Is A Villain

Some people design simple compensation plans because they believe that independent representatives are not successful in direct selling because a complicated compensation plan confused them and because of this confusion, they didn’t go to work.

This is a myth. The largest direct selling companies all have compensation plans that aren’t simple.

Comfort With Simplicity

Others create simple compensation plans because they don’t feel knowledgeable, comfortable, and confident to design a more complex plan. The limitations of the compensation plan designers impact the types of plans they design.

Lack Of Knowledge

Many who design simple plans don’t know about the 12 key behaviors we want to motivate and reward through multilevel compensation. Without this knowledge, they are unaware that simple plans cannot encourage and compensate independent representatives for the activities we want them to perform.

Did you know that leadership development is a key ingredient in the recipe for long-lasting direct selling company success? Leaders recruit more, sell more, and stay in the business longer than others. Simple plans effectively prevent leadership development.

Conclusion

To be successful long-term, all direct selling companies need to have dynamic compensation plans that aren’t simple.

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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