Light a FIRE Under Your Distributors!

When your MLM company launches a commission plan that is well-designed and thought out, it can skyrocket! Your distributors will be propelled by the desire to accomplish the goals they are shooting for, and, in turn, that will make your business boom.

The commission plan is the way that distributors get their REWARD for all of the work they do, and it does need to be as reliable as you can possibly make it. You need to make sure that the company profits AND your distributors are happy before your company can be successful. AND, your faithful distributors need to KNOW that your company is giving them a FAIR chance at a GOOD income. There are three important elements that you need to address in your commission plan:

KNOW the mission of your company – it is YOUR company. Know your service or product strategy. This is a vital step, because you have to anticipate what will happen when your company commission plan kicks in. You will need to make decisions about commissions and pricing and company profits. Remember that you will have some people who will NOT be distributors, but “only” consumers, and they have to buy what it is you’re selling. Otherwise, no commission plan in the world will make your company profitable.

DECIDE what percentage your distributors shall get in their commissions. MORE doesn’t always mean BETTER. If you give TOO much to your distributors, your company won’t profit, and they’ll end up with NOTHING, just as you will. Keep commissions in line with profits and projected profits, so that your business will continue to be a viable one.

DIVIDE your payout of commissions between sales management and sales distributors. Different needs among your distributors will mean different scales in the commission plan. You actually will have FIVE levels of distributors to account for in an MLM venture, but it’s not as complex as it sounds, because your five types of distributors’ work is all confined in the areas of incentives, contests, communications and marketing.

The commissions that your MLM company pays deal exclusively with activities that YOU want to be able to pay permanent compensation for. Basically, that means selling a product and managing others who sell that same product. Some companies have attempted (or succeeded in, for awhile) paying people to recruit other salespeople, but then you get into the pyramid scheme dynamic, and that is illegal in the United States and in some other countries as well.

You don’t have to be perfect, to design a plan for commissions. NO one could do it, if that was the case. MLM companies can succeed even if they don’t have the “perfect” mix of commissions and product pricing. As long as your distributors are happy and you’re happy, GO for it!

 

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Written by Internet MLM Training - http://internetmlmunderground.com

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