Compensation Plans that Get Million Dollar Results
What makes the difference between a compensation plan produces million dollar results and ones that sputter and stall?
Short answer… ALIGNMENT – harmonizing your compensation plan to how you do business, how you sell, your products, your culture, your dreams.
Have you noticed that every billion dollar direct selling company has a different compensation plan? Avon, Amway, NuSkin, Herbalife, and Melaleuca – they ALL have different compensation plans. Companies that go through hypergrowth don’t have a secret compensation strategy. They kill it when it comes to alignment.
How do you align (harmonize) every moving part of your business model? You start by defining clearly “who you are”and “how you sell”. Those two vital questions determine what kind of compensation plan will work best for you. This is why you can’t just copy a comp plan from another successful company and make it work for you.
What are the key elements of alignment?
- Your mission, vision, values (who are you?)
- Selling method
- Product profit margins
- Type of products
- Product presentation & bundling
- Sales force culture
- Prospecting system
- Recruiting system
- Buying club or customer centered?
- How important will retail profit be to your sales force?
- Field training
- Technology tools and support
- Internal policies, disciplines, processes
- Staff training
- Compliance enforcement
I’m sure there are others that you might add to the list. I’d love to hear your suggestions.