Do You Really Understand Your Compensation Plan?

By Jay Leisner, Sylvina Consulting – jay@sylvina.com

Direct selling compensation plans should be designed to motivate and reward 7 key behaviors.

These include

  • Personal consumption
  • Sales to retail customers
  • Sponsoring new representatives
  • Supporting representatives
  • Personal leadership development
  • Developing others into leaders
  • Helping other leaders to develop leaders

What if your compensation plan wasn’t performing too well? Would you know? Would you know what to do?

The first step is to understand your current compensation plan and to measure the performance of your sales force in response to it.

Then, you should identify your goals and evaluate the results from your compensation plan over time so that you can see clearly what is working for you and the areas in need of positive change.

Are the performance results of your sales force in line with industry averages? Better yet, is your company “beating” industry averages?

Once you’ve identified your targets of opportunity, you can proceed to the next step… adjusting your compensation plan to achieve optimum results.

Be sure to include a transition plan to introduce the plan changes to your field and to minimize the effects on individual representative compensation.

When you encourage and reward properly the 7 key behaviors, the success of your representatives will propel your company forward.

We can help you to understand your direct selling compensation plan, to review the results of it, and to design changes to encourage activity, reduce attrition, and grow your company faster.

For information on our compensation plan consulting services, contact Jay at Sylvina Consulting at 503.244.8787.