New Guidelines from the Top Comp Plan Experts

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If you’re wondering how to design MLM compensation plans, you’re probably launching your own direct selling company— or you’re trying to overhaul an existing company. Either way, you understand that compensations systems have enormous importance in the growth of a direct selling enterprise.

There are so many different kinds of plan, knowing how to design MLM compensation plans can be challenging, especially if you’re new to the industry. As you review the list of plans below, you need to understand that they’re not all equally valuable, but it’s important to get a grasp on the wide range of options available:

  • Australian
  • Binary
  • Board
  • Matrix
  • Monoline
  • Spill over Binary
  • Stair Step
  • Unilevel

Especially for new companies learning how to design MLM compensation plans, there are a few key concepts to remember. These concepts also apply to existing companies that are considering a comp plan overhaul

See Your Compensation Plan in Context

You can’t create success in direct selling based only on your compensation strategy. Many other factors are in play. A good consulting firm in this industry will know exactly how to design MLM compensation plans, but they will always be mindful of the larger context. Your consultants will help you consider all the dimensions of your launch or growth, and they will make sure you integrate your comp plan into the overall strategy.

This approach has made The Sheffield Group the most respected consultancy in the MLM industry. So let’s take a closer look at what you need to know about how to design MLM compensation plans.

Designing Success, Not Just Compensation

Clearly a great compensation system alone will not guarantee success. Whatever stage your business is at, there are five principles that you must focus on in addition to your financial reward policy:

  1. Product value: Does your product that meet a tangible need, and is there a story about it to be told?
  2. Company ethos: How inspiring is your mission and how welcoming is your culture?
  3. Smart technology: Are you making the best use of technology to serve your customers and distributors?
  4. Brand strength: How unique, memorable and attractive is your brand and its online projection?
  5. Executive team: How expert, experienced and approachable is your executive leadership?

With all these in place, having experts who know how to design MLM compensation plans can only add to your success. For over 30 years, Sheffield has proven its ability to deliver on all the key parameters of direct selling success. At the same time, Sheffield has demonstrated greater understanding of compensation plan design than any other direct selling consultancy.

How Sheffield Can Help

In addition to knowing how to design MLM compensation plans, the Sheffield Group will review every aspect of your business. Here are just three of the factors that your Sheffield consultants will consider:

  • Product — Is your product a good fit for the MLM channel?
  • Market — Who are your ideal customers and what is their primary problem that you solve?
  • Competition — What are the next best alternatives available to your customers, and why is your solution better?

Based on this review, Sheffield will apply its knowledge of compensation plan design to match your business goals.

At the same time, your Sheffield consultants will help you master the multiple dimensions of directly selling success. They’ll also provide a detailed task list so you can manage every step of your company launch or relaunch.

CALL US: 480-968-6199

Sheffield: Your All-Round MLM Experts

Founder Mike Sheffield is renowned as an industry leader with extraordinary knowledge of how to design MLM compensation plans. For over 30 years, his team has been delivering successful solutions to some of the most respected companies in the direct selling industry.

Importantly, the Sheffield Group is equipped to address every aspect of your future success — either with our in-house consulting team, or with the support of our world-class network of specialist experts.


  • Concept and Product Review
  • Compensation Strategy
  • Marketing Strategy
  • Sales Pathways
  • Product Positioning
  • Distributor Recruitment Strategies
  • Financial Modeling
  • Culture Development


  • MLM Software
  • Branding and Design
  • Website and App Development
  • Online Positioning and Marketing
  • Social Media
  • Executive Recruitment
  • MLM Law

Your Next Step

If you’re wondering how to design MLM compensation plans, the answer is: consult the best experts you can find! Contact the Sheffield Group for a free initial consultation today. To make an appointment, simply call us, or click the Message link below.

Let’s Talk About Your Business