The Key Retention Secrets In Compensation Plan Design

Secret #1 Design the plan to reward the good behaviors of independent sales agents
Secret #2 Create the plan to motivate people to achieve more than they otherwise would achieve
Secret #3 Know your target market.

  • Did you know that in 2003, 74% of the people in direct sales / MLM were women?
Secret #4 Know your target market.

  • Did you know that in 2004, 95% were part-time, and 52% worked 9 hours or less per week?
Secret #5 Focus on the behaviors:

  • Selling
  • Recruiting
  • Managing
  • Leading
  • Retaining
Secret #6 Recognition is as important as compensation
Secret #7 Early money is crucial:

  • Target $25 to $35 per hour.
  • Have an upline mentoring program.
  • Give them sales support tools in their kit
Secret #8 Offer “consistency” incentives

  • “Frequent flyer” credits
  • Offset bonuses
  • Tie to autoship (example)
Secret #9 Offer a clearly defined career path

  • Identify the behaviors that you want and design the career steps around them
  • Recognize the three types of distributors
  • Make the first 1 – 2 steps easier to achieve
  • Balance earnings increases with degree of difficulty to advance
Secret #10 Keep recruits through effective fast-start systems
Secret #11 Monitor key performance indicators and behaviors over time

  • Selling / retailing
  • Recruiting
  • Building managers
  • Building leaders
  • Retention / attrition / consistency

(The content of this article is extracted from ServiceQuest® RetentionSmarts™ Modules. For more information on RetentionSmarts™ training and mentoring systems, contact a member of the LaunchSmart team.)

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