First, we must note that this is a bit out of our area. However, we have attended many such events and been involved in meeting planning from hotel logistics to program to meeting planners. And we have done this scores of times with many of the leading direct selling companies.
With that said, the point is that you are in a relationship business. All studies have shown that recruitment and retention have a direct correlation with how your distributors bond with management, leaders, corporate mission, and product. Obviously, a company will lead with the goal of rewarding distributors with recognition, providing good education on the product, opportunity and recruitment, inspiring them as to the past and future, demonstrating sincere appreciation and making sure they have a good time. This is “experiential bonding” and it is a company’s opportunity to showcase both objectively and emotionally why distributors should bond with management, other leaders, other fellow distributors, company product, the mission of the company and hopefully, if there is a philanthropic program, with the community “giveback” of the company.

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 February 25 & 26, 2016 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.

For more information on the network marketing industry visit www.mlmlegal.com and www.mlmattorney.com.

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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.

Visit us at www.mlmlegal.com to learn more.

All studies have shown that recruitment and retention have a direct correlation with how your distributors bond with management, leaders, corporate mission, and product.

First, we must note that this is a bit out of our area of legal expertise. However, we have attended many recognition events and been involved in meeting planning, from hotel logistics, to program, to meeting planners. And, we have been involved with these kinds of events scores of times with many of the leading direct selling companies.

With that said, the point is that you are in a relationship business. All studies have shown that recruitment and retention have a direct correlation with how your distributors bond with management, leaders, corporate mission, and product. Obviously, a company will lead with the goal of rewarding distributors with recognition, providing good education on the product, opportunity and recruitment, inspiring them as to the past and future, demonstrating sincere appreciation and making sure they have a good time. This is “experiential bonding” and it is a company’s opportunity to showcase both objectively and emotionally why distributors should bond with management, other leaders, other fellow distributors, company product, and mission of the company and hopefully, if there is a philanthropic program, with the community “giveback” of the company.

For more information on the network marketing industry visit www.mlmlegal.com and www.mlmattorney.com.

Find us on our social networks:

Google+

LinkedIn

Twitter

Facebook

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.

Visit us at www.mlmlegal.com to learn more.