The most assumed and expected incentives are monetary and come in the form of bonuses and commissions. Since direct selling companies are trying to incentivize different types of consultant behavior, the compensation plans of MLM companies are often complex and multi-task to provide incentives for retail selling, preferred recurring customers, building wide, building deep, working with immediate downlines and deep into a downline, time sensitive personal and group sales production, personal and group sales, longevity, quick start, among others. Incentive programs are usually designed to affect the distributor’s ultimate sales behavior.

Beyond cash incentives, most leading network marketing companies understand the power and inspiration behind noncash incentives that resonate financially and emotionally with distributors and keep them bonded to the company. Among the common incentives are auto lease support programs, house payment support programs, travel/trip incentives, conventions, reward pins and accessories, iPads, and tangible giveaways.

Of course, the most powerful noncash incentive is recognition for distributor accomplishments.

Do you want to learn more about incentives? Check out the video by expert MLM Attorney, Jeff Babener:

Do Incentives Increase Sales? How Worthwhile Are Consultant Incentives?

Join us for the next Starting and Running the Successful MLM Company Conference in Las Vegas. Call 503-226-6600 or 800-231-2162 to register.

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Our huge newsletter subscriber list of MLM independent consultants will enjoy this week’s video that discusses ‘Do Incentives Increase Sales? How Worthwhile Are Consultant Incentives?’ Expert Business Consultant and MLM Attorney Jeff Babener answers this question. Do incentives help you increase your sales? Watch this video to find out and comment below!

The company profiled in this week’s newsletter is The Fuller Brush Company. With a celebrated history that reflects over a 100 years of excellence, the Fuller Brush Company is one of the iconic names in American business. Read more about this MLM company in this week’s newsletter archive.

Like all other weeks, there is the latest scam news as well. Check out the company names popping up on MLM scam alert sites:

• Ariix Review: Affiliate restrictions & complex pay plan
• 3×9 Millionaire Machine Review: $435 million & terrible math
• ProfitShare 63 Review: French Ponzi reboot
• USFIA offices raided, SEC granted TRO
• Darryle Douglas ordered to surrender Zeek database
• iFunding Connect Review: $25 a month cash-gifting
• Speak Asia’s Harender Kaur wanted by Interpol
• Familia Unitas Review: $20-$200 a month recruitment scheme

What else is new in the direct selling industry this week? Check out all the top news stories that you are missing by not getting our newsletter in your inbox! Check out MLM News Global and sign up for our free e-newsletter! Cancel at any time. NO SPAM!

If you are interested in attending the Starting and Running the Successful MLM Company conference visit our conference page, view our speaker list, or get more details. All executives/owners of direct selling companies are welcome to attend. Call 800-231-2162 to register.

Our next Starting and Running the Successful MLM Company Conference takes place October 22 and 23, 2015 in Las Vegas. View our conference flyer and speaker list online. Participate in our Innovation Campaign for your chance to receive TWO FREE TICKETS to attend our next conference.

If you’re reading this blog post and the conference dates above have passed, check our website for the current conference dates.

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Compensation plans are drawn by skilled craftsmen.

As the French say, “a chaque a son gout.” Translated, this means, to each his own taste. And this is the truth. There is no right or wrong when it comes to types of compensation plans, whether they be unilevel, stairstep breakaway, binary, matrix, Australia Two Up, etc.

In fact, it is rare today to see a compensation plan that does not combine elements of various models as well as various add on features such as a shared bonus pool, enroller bonus, check match, infinity bonus, generational payout, fast start bonus, etc. Compensation plans are drawn by skilled craftsmen such as Michael Sheffield of the Sheffield Group, www.Sheffieldnet.com, to incentivize differing types of behavior. And incentives may be accomplished by rewarding those who have substantial personal volume, substantial group volume, sponsor wide, sponsor deep, train their downline, demonstrate substantial retention, demonstrate the building of other leaders, etc. Differing compensation plan models reward differing types of behavior. In general party plan companies tend toward unilevel and generational bonuses. Consumables companies tend toward matrixes and binaries because the focus is on recruiting large downlines. Australia Two Up plans tend to be oriented to high-priced, one-time purchases.

As a general matter, all compensation plans have a similar amount to distribute, ranging from 30-50%. How the pie is cut differs from business to business. A party plan skews payments to the direct sale. A consumables plan skews payments to be spread over a larger base. In the end, the compensation plans chosen are tailored to the products, economic objectives and behavior to be incentivized.

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Our next Starting and Running the Successful MLM Company Conference takes place October 27 and 28, 2016 in Las Vegas. Call 503-226-6600 or 800-231-2162 to register. If you’d like to see how you can get free tickets to the next MLM Startup Conference, visit our Innovation Campaign page.

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