A great compensation plan makes you more attractive to the distributors who will drive your growth, and Sheffield is renowned as the industry’s leading expert in this field.
Your compensation plan is a critical component of your new MLM or party plan company. For many startup entrepreneurs, it’s one of their earliest concerns. And for existing companies, a review of the compensation plan can be a turning point in moving the company to the next level. The role and requirements of the compensation plan are widely misunderstood, so we’ll take a moment here to dispel some myths and shed light on the reality of compensation plans.
THE MYTHS AND REALITIES OF COMPENSATION PLANS
1. The purpose of the compensation plan is to compensate distributors.
The primary purpose of the compensation plan is to motivate behaviors that will grow your company.
2. The compensation plan is simply a financial tool.
The compensation plan is also a marketing tool: a great plan makes you more attractive to the distributors who will drive your growth because it gives them a roadmap to success.
3. There’s ONE plan out there that is proven best for all companies.
There is no one-size-fits-all compensation plan. Your plan needs to be precisely customized for your product, market space and intended distributor behaviors.
4. The Best Plan Is a Simple Plan.
To motivate the right behaviors and to match competition from other companies, your plan may well need a number of moving parts that compensate for varied sales and recruiting activities.
5. A complex plan will put off new distributors.
A complex plan can be simply explained. Distributors don’t need to understand the inner workings of the plan—they just need to know what actions are needed to earn the best rewards.
6. I can buy an off-the-shelf plan for now and change it later.
The plan you launch with will have enormous impact on your early success. Some refinements will be possible later, but a major change can harm your business. So get it right the first time!
7. Compensation plans haven’t changed much since the industry began.
Compensation plans are evolving year by year, and to be competitive you need to be fully informed on the latest innovations.
The Sheffield Edge
The Sheffield Group has developed a level of skill in compensation plan design that cannot be matched by any other consulting firm.
We will analyze your business and provide the best plan suited to drive growth for your product, market and distributor base.
If you are at an early stage in your planning, it is critical that you educate yourself on the opportunities, hazards and demands of compensation plan design. If you are already in business, we can offer perspectives drawn from the huge numbers of business — and types of compensation — we have dealt with.
We invite you to contact us at no cost to discuss your future.