Network Marketing and Party Plan Compensation Plan Design

Fundamental # 2 – Compensation Plan

Common Questions - Compensation Plan

To help you grasp some of the fundamental principles involved in designing a compensation plan, we have uncovered the source of the principles and concepts of the most advanced plans. Instead of fads and trends, the key is to base the plan on sound principles that do not change.

Compensation plans that consistently create the best results follow similar principles of success in direct selling. A few of these timeless principles include:

Balancing the key sales force behaviors using incentives built into the compensation plan
Emphasizing customer sales and support
Building strong managers
Developing powerful leaders
Creating a "retention culture"

If a company gets these principles right, despite mistakes in other areas they will still move upward.

Startup Coaching, Information & Tools

In addition to the valuable free resources at this website, you will find that these tools have been specially created to help you quickly and easily complete the vital work of compensation design for your new network marketing startup:

LaunchSmart™ Compensation Plan Design Basics

DESCRIPTION: Our approach to compensation plan design begins with the belief that all good compensation plans have the same foundational elements and behavioral focus. Because the money spent on sales force compensation represents a company's single largest expense, the return on investment must be measured in terms of behaviors. In other words, what behaviors do you get back for the money you spend on commissions? This foundational training is vitally important for setting the stage for successful design or analysis and improvement of the compensation system. You will learn the five "Golden Behaviors" required for building a successful direct selling business, and how compensation is tied to those behaviors.

Key Benefits:

Make the vital decisions that will drive the key elements of your compensation plan.
Learn important fundamentals so your compensation plan designer works to meet your specific business needs and strategies.
Included in LaunchSmart™ Bundle

LaunchSmart™ Compensation Plan Design Services & Tools

DESCRIPTION: Our compensation plan design team is guided by the most sought-after compensation plan design specialist in the direct selling industry. Having worked with hundreds of successful companies over the last 25 years, the breadth of experience provides immense value to direct selling companies needing better compensation plan strategies, and to new companies needing guidance in cutting-edge plan design.

Key Benefits:

You just can’t get the compensation plan wrong and be successful – so we’ll make sure you get it right!
Our award-winning team creates great compensation plans, tailored to your specific business needs and strategies. (2007 DSA Partnership Award)
Receive all you need to effectively communicate your compensation plan to your field reps.
Available for separate purchase

Compensation Plan Payout Estimator

DESCRIPTION: Because each plan has its own unique fingerprint, you need a dependable tool to guide you through the payout analysis of the plan as a whole, or changes that you are considering. The Compensation Plan Payout Estimator is a consultant's tool, now available to you with additional features, for estimating payouts at various levels of your compensation and incentive system. This powerful tool integrates with JACKRABBIT™ to provide fast and reliable results. At each step in the launch process, LaunchSmart™ tools dramatically increase your percentages for success.

Key Benefits:

You can always increase field compensation – but you can rarely decrease field compensation without considerable fallout. Make sure you can afford your planned payout.
Assure your company’s profitability
Included in LaunchSmart™ Bundle

A Picture is Worth A Thousand Words!

We could try all day to adequately describe these unique tools, but once we actually SHOW you, you’ll instantly “get it!”

Please be our guest for a personalized web-based presentation of the LaunchSmart™ system. Of course, there is NO OBLIGATION, and you’ll quickly learn how to organize and successfully launch your new company.