How to Maximize Your Compensation Plan
Over the last four years I’ve loved studying different compensation plans out there. It’s probably borderline an addiction for me..
And it’s not because I think i’ll ever switch network marketing companies or anything like that.
I’m just fascinated by how different companies setup their compensation structure to drive specific actions with their distributors.
Let’s Bust Compensation Plans Myth #1
There is no one perfect compensation plan!
I see distributors hype their comp plan all the time! I even had one guy in Hong Kong once attempt to get me to plugin all of my existing team volume into his special spreadsheet to show how much more money i’d be making in his company.. Kinda a weird approach man, but it’s cool.
What you need to understand is that most compensation plans out there work great if YOU go to work!
One Common Myth: More Ways to Get Paid Means You’ll Make More Money
I often see people using to promote their comp plan is that their company has more ways to earn. 12 different bonuses or something similar. But more ways to earn does NOT mean you will actually earn more!
Often it can really mean more breakage for the company.
What is breakage in a Network Maketing Comp Plan?
Breakage is the unpaid or unearned commissions (usually the company keeps the breakage).
Here is the question you should ask yourself about your companies comp plan:
How to Maximize Your Comp Plan:
First ask yourself this, are there people making money? =) If so, you can too! It’s that simple.
Tip 1 – Get Advice From a 6 or 7 Figure Earner in YOUR Company
I recommend that you connect with an upline 6 or 7 figure earner to learn how to maximize your specific comp plan and to learn if you have a specific team strategy!!!
Tip 2: Understand how the newest person can get their investment back quickly!
This is a huge step. If you can help the newest person entering your team get their investment back AND make a huge deal about it, they will be feel KNOW that your company really works. Celebrating these first wins even if they seem small will build both confidence and momentum in you team.
Tip 3: Launch to the rank where they are getting their product payed for!
Make sure that you know at what level of your comp plan people will be making more than their personal investment back in residual income. Do your very best to help newer distributors to launch to this level as quickly as possible.
Use these tips and go out and rock your compensation plan!
Reach out if you have any questions for me.