We often hear the question, “Can we pay commission on sales tools, sales kits, and training materials?” The definitive answer is NO! This isn’t appropriate. Think about it, if a company paid commissions on sales tools and training then, conceivably, no one in the company would ever have to sell the company’s products or services. Everyone would make money only by selling sales tools and training materials. This has all the elements of a pyramid, head-hunting recruitment scheme.
Therefore, the proper advice given to companies is that you should only pay commissions on the sale of products or services that are sold to the public. You should not be paying commissions relating to the sale of sales aids or training materials.
The following articles may also prove helpful to MLM business owners:
Is it Appropriate to Pay Commissions on Sales Tools and Training? [Video]
For more information, be sure to visit www.mlmlegal.com – the best MLM resource on the web – and www.mlmattorney.com.
Pingback: An Introduction to Direct Selling and The Basics of MLM | Welcome to Jeffrey Babener's Blog
Pingback: Creating Clear Agreements Between MLM Company Owners | Welcome to Jeffrey Babener's Blog