There’s something that’s becoming quite evident in direct selling right now: Yesterday’s compensation plan design best practices don’t pack the punch that they used to. And no wonder: It’s a completely different world now. And yet, so many direct selling companies are choosing to “tweak” their plans, adding some flashy trends on top of an otherwise outdated foundation. I get the hesitancy. Changing compensation plans is not for the faint of heart (or the weak of mind). It’s scary to move into … [Read more...]
3 Fundamental Transitions for Direct Selling
Being driven by what people can sell versus what people will buy may sound similar, but they’re actually very different concepts. Direct selling is changing. We’re in the middle of a shift from point A to point B. We may not be exactly clear on what point B is, but we definitely know that point A is in the rearview mirror. The three transitions below encompass the most important areas for a direct selling company to address as quickly as possible. These aren’t meant to be new concepts, but … [Read more...]
Open-Neck Vs. Closed-Neck Compensation Plan
A friend of mine who is starting a direct selling company posed this question to me: How many downlines in my compensation plan should go toward the company? My Answer The number of downlines that come direct to the company has a big impact on how quickly your compensation plan matures and hits its highest possible payout levels. Too often, however, the founding management of a direct selling company fails to consider the impact of this issue. Regardless of the design of your plan or … [Read more...]