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3 Things To Think About When Choosing A Compensation Plan

You have decided on your company's mission, and the product line is set and priced.  Now, to the critical part: how will you reward people who join your company and work hard at adding sellers to your company and their network?

Are you going to start an Opportunity Company?  Take a look at the compensation plan you plan to use, and decide what role you want it to play, or the Consultant you hire may decide that for you.

And if you choose the wrong plan, all your hard work may fall on deaf, or few, ears.  Here are three things to think about when crafting a compensation plan:


Have a strong opinion about what you want to accomplish with it.  Rewards are obvious, and being competitive is important.  But are you going to have a strong opportunity message that rings true as your sales force moves up in rank?  When will the average seller make it to six figures?  And does hard work recruiting, training and retaining get rewarded early enough?  If that is part of your message, test the math and see if it is true.


Does your compensation plan look like it was crafted by a lawyer or an accountant?  I would take the accountant any day.  If your plan requires your sellers to do too much to stay active (structure requirements), or to stay in rank, then the whole plan may be geared more to fulfilling requirements rather than making it simple to stay in the game or jump to the next level.   Your plan should motivate action, rather than require overthinking as to how to stay in the game.


Does the plan reward early and well?  Some companies are having a lot of success with rewarding early.  Yes, it is expensive, but it builds your sales force fast, and word of mouth in this business is better than paid advertising.  A cash bonus built into the plan for recruiting in the first months?  A car early in the compensation program?  These are ways to create buzz by rewarding early.

There are a plethora of books and direct sales consultants out there willing to educate you on a compensation plan for your company. 

Make sure you choose well.

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