Every Direct Selling Company that has reached the pinnacle of success in today’s competitive market began its business by offering unique products or services that served a recognized need. But quality product alone didn’t sustain a multi million dollar growth pattern. By necessity the company provided a solid marketing concepts and a compensation plan which offered the serious minded distributor a significant financial opportunity. In addition it was critical to provide the part timer and “consumer/ distributor” an easy way to stay involved at their own specific levels of interest. Add to this a competent management team and motivated professional sales leaders, and you have a text book formula for success. However, my continued research into this ever evolving industry has made me aware of a “paradigm shift” in progress in direct selling methods, compensation plans, communication and support.
The direct selling industry is changing and changing rapidly. In years past, the direct sales single level compensation structure ruled. According to Neil Offen, president of the Direct Selling Association in an article in Network Marketing Magazine, single level direct selling companies accounted for 75% of the organizations membership in 1990 with 25% being Multilevel. Now, 77.3% of DSA members are structured as MLM verifying a new age of marketing has arrived commanding the long awaited accompanying respect. Even the established pioneers of MLM are feeling the pressure as these new age MLM companies demonstrate growth unparalleled by previous standards.
But, look what has happened for the MLM distributor today. Enhanced telephone services, the personal computer (PC) and the Internet have created an environment for the tremendous increase we have seen in the Multilevel Marketing home based business success.
Today, the telephone has become the most important tool in sponsoring. Self initiated three way and six way conference calling is now available from most local phone service carriers eliminating geographic restrictions. The Internet solves the instant support information need and is the vehicle for quick enrollment. Payment for distributor kits and product is easily handled over the phone or Internet by credit or debit cards making same day shipping of goods possible. Add next day delivery services, andwe can literally complete a sponsoring transaction having the new recruit in business in 24 hours.
Just a few years ago, only a few people knew what the Internet was. Many companies are finding that they can use the Internet to extend their sales and marketing reach, to improve the quality of their customer service and even to conduct multimedia conversations with their distributors. For the price of a local phone call and a few hundred dollars spent on-line, you can send bulk e-mail over the Internet to your potential as well as existing customers and distributors. The same message sent by conventional mail, including printing and postage would cost a great deal more. In short, the Internet is quick, cost-effective and easily accessible all over the world 24 hours a day, seven days a week.
In the same way the internet has altered communication and traditional business thinking forever, Multilevel Marketing has infected the direct selling world with such a powerful energy that even the oldest and most conservative direct selling companies are taking notice. Unlike the Internet’s effect on business, which seemed to come at us like an unexpected tidal wave, MLM is a known methodology traced back over 50 years. Although considered a fringe concept by the established direct selling community, MLM flourished spreading its tentacles and silently implanting itself creating a growing army of mostly part time independent contractors. Soon MLM accounted for billions of dollars of product sales. While many direct selling company executives ignored the MLM revolution regarding it as a distant cousin not to be taken seriously, companies like Nu Skin, HerbalLife, A.L. Williams, Malaluca and Excel Telecommunications powered their way to sales growth unparalleled by any previous traditional or direct selling standard.
As a direct selling corporate executive hoping to build a strong and geometrically growing organization to help your distributors meet their financial goals, understanding the compensation plans of the growing number of MLM companies could become a full time job in itself. “Stair Step – Unilevel – Matrix – Binary – Australian … it’s enough to drive even the most experienced corporate executives mad. I’ve debated theory for hours on how the compensation plan is like a piece of art with every twist and turn, every level and qualifier, every bonus pool or discount incentive carrying a specific action and positive reaction from the distributor base. New Age compensation plans are no longer “pure” MLM, but can be better catagorized as hybrid systems which attempt to be all things to all people. A little more discount here – another level in depth there, infinity bonuses, compression, roll-up, pass-through bonuses — We need an MLM dictionary just to decipher the written explanations of the plans.
If you are considering the “Decision to Transition” your present compensation structure to an MLM model, please take note!
Radical change may be necessary but don’t jump on the first fad compensation plan that rings your chimes. Your corporate and product mission along with distributor culture must be considered. Adopting a plan that maintains your long established principles while incorporating current trends should be your goal.
Today’s plans must address the following:
1. Cost of new distributor entry sales kit should be modest making it easy to get started.
2. Early payout of initial commissions and bonuses paid weekly or bi-weekly is becoming the norm.
3. A good plan provides bonuses balanced between the beginning MLMer who is just trying it on for size, the committed part time business builder who is building an organization through multiple levels, and the totally committed leader who can benefit from bonuses from sales generated by a significant downline community.
4. Distributor monthly maintenance qualifications to receive downline organization bonuses should be reasonable and achievable for the consistent part timer as well as the dedicated and committed full time participant.
5. Program should incorporate Auto-Ship ordering programs with a bonus volume relationship to monthly distributor qualifications.
6. Plan should mandate distributor minimum personal retail sales while rewarding for building an organization in depth.
7. A “Plus” plan. This means that there are no sponsor disincentives created by lost or reduced centers of profit as the downline advances that might encourage leaders to suppress downline advancement. All earned bonus levels are in addition to those previously earned, never in place of them.
8. Distributor ranks and titles should be permanent once received, but distributor bonuses should be “Paid-as” the position for which they actually qualify during the pay period.
9. Compression of levels or generations should occur to properly reward performers through maximum depth of income stream.
10. The plan should be “Capitalistic” in its design to reward the business builders who contribute regularly to the company growth. Beware of plans that are “socialistic” in design dividing available profits among many and encouraging a something for nothing philosophy.
If you are a traditional direct sales company considering transitioning to MLM or an established MLM just trying to play catch up in the evolving marketplace, a competitive compensation plan tied to today’s technology is only part of the equation for maintaining and growing your market position. You will be competing for your distributor’s time, not just their product sales or consumption loyalty. Show them how to leverage their time while geometrically growing their income and you will put your company in the winner’s circle.
Of course, technology and a hot compensation plan cannot replace person-to-person communications. People still do business with people, and the more you embrace technology, the harder you should work at building personal relationships with your distributors. Make yourself accessible at every opportunity by arranging occasions that will bring you together with them face-to-face. However, keep in mind that the world of sales and marketing is changing rapidly. Some companies are recognizing these opportunities and rushing reinvent themselves. Others are watching intently and will soon follow, if only out of the need to stay competitive. As we have heard it said many times in business, “Lead — Follow — or Get Out of the Way!”
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- Creatively Conscious Life: A lifestyle blog promoting conscious living, sustainability, and personal growth, offering insights, tips, and inspiration for a balanced and fulfilling life.
- High Return Business: A platform providing resources, insights, and opportunities for individuals interested in starting or investing in high-return businesses, helping them make informed decisions.
- Holiday Vacation Rental: A vacation rental website offering a wide range of accommodations for holiday and vacation destinations worldwide, providing travelers with comfortable and convenient lodging options.
- Eweb Thailand: A digital agency specializing in web design, development, and online marketing services for businesses in Thailand, helping them establish a strong online presence.
- Future Shopping Club: A membership-based shopping club offering exclusive discounts, deals, and benefits to members, providing an enhanced shopping experience with savings and perks.
- Shopping Hoi An: An online marketplace offering a wide range of products, souvenirs, and local crafts from Hoi An, Vietnam, allowing shoppers to explore and purchase unique items.
- NPO Pet: A non-profit organization dedicated to animal welfare and pet adoption, providing resources, information, and support for pet owners and animal lovers.
- Social Web School: An online platform offering courses and training programs in social media marketing, helping individuals and businesses master the art of leveraging social media for effective marketing strategies.
- Fresno Young Lawyers: An association supporting young lawyers in Fresno, California, providing networking opportunities, resources, and mentorship programs to help them succeed in their legal careers.
- Essay Helpers Pro: An academic writing service offering assistance with essays, research papers, and assignments, providing professional help to students to improve their academic performance.
- Educación Digital: A platform offering educational resources, online courses, and tools for digital learning, promoting the integration of technology in education.
- E-Marketing Key: A digital marketing agency providing strategic marketing solutions, including SEO, social media management, and online advertising, helping businesses increase their online visibility and reach.
- Auto-Moto1: An online platform providing news, reviews, and information about the automotive and motorcycle industry, catering to enthusiasts and keeping them updated with the latest trends.
- Turismo Atlixco: A website promoting tourism in Atlixco, Mexico, showcasing its attractions, accommodations, and activities to inspire travelers to visit and explore the city.
- Ultima Life Thailand: A wellness and lifestyle brand offering natural and organic products, promoting holistic well-being and providing health-conscious individuals with high-quality options.
- IUA Asia: A technology consulting company offering innovative solutions and services, specializing in software development, IT infrastructure, and digital transformation for businesses across Asia.
- Jinn Tech: A technology company providing cutting-edge solutions in artificial intelligence, machine learning, and data analytics, helping businesses harness the power of emerging technologies.
- Swiss Mind Sports: A platform promoting mental sports and games, providing resources, competitions, and a community for enthusiasts to engage and improve their cognitive abilities.
- The Dydy Shop: An online boutique offering trendy and fashionable clothing, accessories, and lifestyle products for women, providing a curated selection of unique items.
- Easy Pet Stuff: An online store offering a wide range of pet supplies, toys, and accessories, catering to the needs of pet owners and providing convenience in shopping for their furry friends.
- Street Music Charts: A platform showcasing and promoting independent musicians and their music, featuring charts, playlists, and opportunities for exposure in the music industry.
- Infinite Media Asia: A creative media agency specializing in digital marketing, content creation, and brand development, helping businesses establish a strong online presence and engage their target audience.
- GES Technical: A technology solutions provider offering consulting, installation, and support services for businesses, ensuring efficient and reliable IT infrastructure and systems.
- Tech Guy Ryan: A technology blog and resource website providing tips, guides, and reviews on gadgets, software, and tech-related topics, helping users make informed decisions.
- Studio911 Design: A graphic design studio offering creative and innovative design solutions for branding, marketing materials, and web design, helping businesses visually communicate their message.
- Restaurante Labrador: A renowned restaurant offering a diverse menu of delicious cuisine, showcasing local flavors and culinary expertise, providing a memorable dining experience.
- Cro Business Cafe: A platform connecting entrepreneurs, professionals, and business enthusiasts in Croatia, facilitating networking, collaboration, and knowledge-sharing in the business community.
- Blog Mang Thai: A blog providing information, tips, and resources on pregnancy, maternity, and parenting in Thailand, offering support and guidance for expectant and new mothers.
- Nostal Asia: A platform celebrating Asian culture and heritage, showcasing art, music, history, and traditions, promoting cultural appreciation and understanding.
- SplanTom Tech: A technology company specializing in software development, web design, and IT solutions, helping businesses leverage technology to optimize their operations and achieve their goals.
- Monaliza Fashion: A fashion brand offering stylish and trendy clothing for women, providing affordable and fashionable options for different occasions and personal styles.
- GTO Bad Teacher: An online platform providing educational resources, tips, and strategies for teachers, helping them navigate challenges and excel in their profession.
- Business Broadcaster: A media platform delivering news, insights, and interviews with business leaders and experts, providing valuable information for entrepreneurs and professionals.
- Webatone: A web design and development agency creating visually appealing and user-friendly websites for businesses, helping them establish a strong online presence and attract customers.
- Great Days UK: A lifestyle blog and resource platform offering inspiration, tips, and ideas for creating great experiences and enjoying life to the fullest in the United Kingdom.
- Blog4U UK: A blog platform featuring a diverse range of topics, including travel, lifestyle, technology, and more, providing informative and engaging content for readers.
- ITRUE UK: A technology company specializing in cybersecurity and data protection solutions, helping businesses safeguard their sensitive information and mitigate security risks.
- iLovs MP3: A platform offering a wide selection of MP3 downloads and music streaming, providing users with access to their favorite songs and music genres.
- TJea CBD: A CBD wellness brand offering high-quality CBD products, promoting natural health and well-being, and providing customers with the benefits of CBD.
- Travel Tricks UK: A travel blog and resource platform sharing travel tips, itineraries, and recommendations for exploring destinations in the United Kingdom, inspiring travelers to embark on memorable journeys.
- Inspiration Today UK: A platform dedicated to inspiring and motivating individuals, providing personal development resources, success stories, and practical tips for a fulfilling life.
- Latest Happenings UK: A news and lifestyle platform delivering the latest updates, news, and trends across various topics, including entertainment, fashion, technology, and more.
- Search Info UK: A search engine and information hub providing access to a wide range of topics, news, and resources, facilitating knowledge discovery and information retrieval.
- Online Legal Advice UK: An online platform connecting individuals with legal professionals and providing legal advice and support for various legal matters in the United Kingdom.
- Solutions Debt Management: A financial services company offering debt management solutions and financial counseling, helping individuals regain control of their finances and achieve financial stability.
- Digi-Squad: A digital marketing agency providing comprehensive online marketing services, including SEO, social media management, and digital advertising, helping businesses maximize their online presence and reach.
- RCM Smart Solutions: A technology solutions provider specializing in smart home automation, security systems, and energy management, enhancing the comfort, security, and efficiency of residential and commercial spaces.
- UK Insurance: An insurance resource platform providing information, guides, and resources for individuals and businesses seeking insurance coverage in the United Kingdom.
- South Garden Restaurant: A restaurant offering a fusion of Asian and European cuisine, providing a diverse menu of flavorful dishes in a welcoming and vibrant atmosphere.
- Bokin Shop: An online store offering a variety of products, including fashion accessories, home decor, and lifestyle items, providing a convenient and enjoyable shopping experience.
- Money126: A financial education platform providing insights, tips, and resources on personal finance, investing, and wealth management, helping individuals make informed financial decisions.
- Evo Designs UK: A graphic design studio specializing in branding, web design, and digital marketing solutions, helping businesses create visually appealing and impactful brand identities.
- Legalize Ohio 2016: A grassroots organization advocating for the legalization of marijuana in Ohio, promoting education and awareness about the benefits and impact of marijuana legalization.
- Health and Fitness Training UK: A platform offering fitness training programs, nutrition tips, and wellness resources, helping individuals achieve their health and fitness goals in the United Kingdom.
- Beach Holiday Deals UK: A travel website specializing in beach holiday packages and deals, providing options for beach destinations and seaside getaways in the United Kingdom and beyond.
- Papillon Holidays UK: A travel agency specializing in holidays and vacation packages, offering unique and tailored experiences in the UK and beyond.
- The Technique UK: A blog and resource platform providing tips, tutorials, and insights on various techniques, including DIY, crafts, cooking, and more, inspiring creativity and skill development.
- Tech-YG: A technology consulting and services company offering IT solutions, digital transformation strategies, and technical support for businesses, helping them leverage technology for growth and efficiency.
- eSmart Buyer: An online platform offering product reviews, comparisons, and buying guides, helping consumers make informed purchasing decisions across various categories.
- Brain Health Consulting: A consulting service focused on optimizing brain health and cognitive performance, providing personalized strategies and resources for mental well-being.
- SB Workshop: A creative workshop and event space offering hands-on experiences, classes, and activities in arts, crafts, and DIY projects, fostering creativity and skill-building.
- House of Blue Leaves: An online boutique offering a curated selection of home decor, accessories, and gifts, featuring unique and stylish products for interior design enthusiasts.
- CP Medical Centre UK: A medical clinic providing comprehensive healthcare services, including consultations, treatments, and preventive care, serving patients in the UK.
- ModelBK: A modeling agency and platform connecting aspiring models with opportunities in the fashion industry, offering guidance, representation, and career development.
- New Shopping Store: An online marketplace offering a wide range of products from various sellers, providing a convenient and diverse shopping experience.
- Home of Lovely Ideas: A lifestyle blog and resource platform featuring ideas, inspiration, and tips for home decor, DIY projects, entertaining, and more, helping individuals create a lovely and welcoming home.
- Keating Companies Development: A real estate development company specializing in residential and commercial properties, providing construction, renovation, and investment solutions.
- Online Promotion UK: A digital marketing agency offering online promotion services, including SEO, social media marketing, and content creation, helping businesses enhance their online presence and reach.
- MCM Auto Prestige UK: A luxury car dealership offering high-end vehicles and personalized service, catering to automotive enthusiasts and luxury car buyers.
- Finlay’s Decor UK: A home decor store providing a wide range of wallpapers, paints, and decorative products, helping individuals transform their living spaces with style and creativity.
- Purity Health and Fitness UK: A fitness center and wellness studio offering classes, personal training, and holistic health services, promoting physical and mental well-being.
- Insurance-Zip: An insurance comparison platform providing quotes and information on various insurance products, helping individuals and businesses find suitable coverage options.
- John Harrison Photography UK: A photography studio specializing in professional photography services, including portraits, events, and commercial photography, capturing moments and creating lasting memories.
- Sello Editorial: A publishing company supporting authors in the process of publishing and promoting their books, offering editorial services, marketing support, and distribution.
- Ariza Ga Law: A law firm providing legal services and counsel in various areas of law, serving individuals and businesses with professionalism and expertise.
- Christina Pitanguy: A fashion brand offering stylish and sustainable clothing and accessories, promoting ethical fashion and empowering individuals to make conscious choices.
- Strategy Web Solutions: A digital marketing agency specializing in strategy development, web design, and online marketing, helping businesses establish a strong digital presence and achieve their marketing goals.
- Pet City Vet: A veterinary clinic offering comprehensive care for pets, including medical services, preventive care, and grooming, ensuring the well-being of furry companions.
- Hot Kitchen: A cooking blog and recipe platform featuring a variety of delicious recipes, culinary tips, and food inspiration for home cooks and food enthusiasts.
- JustGo Insurance UK: An insurance provider offering travel insurance plans and coverage for individuals and families, providing peace of mind during trips and vacations.
- Intranet Infos: A platform providing information, resources, and news related to intranet systems, helping businesses optimize internal communication and collaboration.
- Home Report Online UK: An online service offering home inspection and reporting for property sellers and buyers, providing comprehensive and reliable information about the condition of a property.
- ePocket Guide: A digital travel guide and itinerary planner, offering destination information, tips, and curated itineraries to help travelers make the most of their trips.
- CL Photography UK: A photography studio specializing in portrait, wedding, and event photography, capturing moments and creating beautiful visual memories.
- Regular Article: An online platform for authors and writers to publish and share their articles, blogs, and creative works, promoting knowledge-sharing and information exchange.
- News Tamura: A news website providing the latest news, updates, and analysis on various topics, including politics, business, entertainment, and more.
- MNB Cleaning Solutions: A cleaning services company offering professional and eco-friendly cleaning solutions for residential and commercial properties, ensuring cleanliness and hygiene.
- Dinkoff Architects: An architectural firm specializing in innovative and sustainable design solutions for residential and commercial projects, creating spaces that harmonize with the environment and meet client needs.
- Educación Laboral: An educational platform offering resources, courses, and guidance for career development and professional growth, empowering individuals in their educational and career journeys.
- Success Education System: An education consultancy providing coaching and guidance for academic success, helping students excel in their studies and achieve their educational goals.
- Gradiva Hotels: A hotel chain offering luxurious accommodations and exceptional hospitality experiences, ensuring guests enjoy comfortable and memorable stays.
- Thailand169: A travel blog and guide featuring the best of Thailand, including travel tips, attractions, culture, and local experiences, inspiring travelers to explore the beauty of Thailand.
- Thailand Walks: A platform offering guided walking tours and hiking adventures in Thailand, showcasing the country’s natural beauty and cultural heritage through immersive and sustainable experiences.
- My Thai Living: An online resource and community platform providing information, insights, and resources for individuals interested in living, working, or retiring in Thailand.
- Simply Shopping Zone: An online shopping destination offering a wide range of products across various categories, providing a convenient and enjoyable shopping experience.
- Can We Talk UK: A mental health and well-being platform promoting open conversations about mental health, providing support, resources, and a safe space for individuals to share and seek help.
- Moovment UK: A fitness and wellness brand offering classes, workshops, and products to inspire movement, mindfulness, and healthy living.
- New York Criminal Lawyers Blog: A blog providing insights, legal news, and resources on criminal law in New York, helping individuals navigate the legal system and understand their rights.
- Arirang Korean Restaurant: A restaurant offering authentic Korean cuisine, providing a delightful dining experience with traditional flavors and dishes.
- Stop the Margin Tax: A platform advocating against the implementation of a margin tax, providing information, resources, and support to protect the interests of businesses and taxpayers.
- Mum Taught Me Fashion: A fashion blog and style platform sharing fashion tips, outfit inspiration, and personal style insights, empowering individuals to express their unique fashion sense.
- Thai Inter Consult: A business consulting firm specializing in Thai market entry and business expansion services, providing strategic guidance and support for companies entering the Thai market.
- Life Up Thailand: A wellness and personal development platform offering resources, courses, and coaching for individuals seeking personal growth and life transformation in Thailand.
- Thailand Grown: An online marketplace connecting consumers with locally grown and organic products from farmers and producers in Thailand, supporting sustainable and ethical practices.
- Digital Media Asia: A digital media agency providing creative and strategic solutions for digital marketing, branding, and online presence, helping businesses thrive in the digital age.