Is Your Comp Plan Rewarding the Right Behaviors_ Harnessing MLM Data

Is Your Comp Plan Rewarding the Right Behaviors? [Harnessing MLM Data]

If you’re working on rewarding distributors in your direct selling compensation plan, it’s easy to focus on things like which rules you’re using or if you have the right core commission. But knowing whether or not you’re motivating the right behaviors actually has a lot less to do with perfecting all of your requirements and a lot more to do with really knowing your distributors and customers.

So, we invite you to take a step back and look at the actions you really value in your business. Is your compensation plan truly geared toward promoting and rewarding the right behaviors? And how can you tell?

Even though every MLM compensation plan and company is different, most of them share a need for their distributors to take these four basic actions:

Attract New Customers
Attracting customers is one of the most important actions taking place in your business—customers generate sales and a steady earnings base for distributors and your entire organization.

Support Customers
It’s important that all of your customers feel valued and are getting what they need so they can continue purchasing your products.

Enroll New Distributors
Growing your distributor field is also important, since a greater number of distributors can form a more solid support network and continue to attract new customers.

Train and Support Distributors
This is especially important for your newest members, but all distributors benefit from ongoing training and support. As your company’s offerings, rules and policies change, it’s important that every distributor is in the know and can get help when they need it.

Each of these actions are crucial for running a great MLM. It’s important that every distributor builds their organizations with trained, happy new recruits and customers, but also that all of those new people are supported and taken care of.

It’s great to say that you should encourage more of these actions in your organization, but how can you know if you’re really doing it? The key is knowing your metrics. Here are some things you can look for regarding each of the actions above to follow and measure your progress:

Attracting New Customers.
This one seems pretty simple at first—to know if you’re attracting new customers, track the number of new people that are buying your products. But make sure to drill into this metric to see what’s really going on by comparing company-wide numbers to individual leader groups. Is one leader doing most of the work? Do you have growth hotspots that are skewing your numbers?

Supporting Customers.
Customer support is harder to measure, but not impossible. You can start by looking at activity and retention. How long do your customers stay engaged? Do certain distributor leaders have more or better engaged customers? Why? Are most new customers purchasing subscriptions, or do they favor smaller products? Do leader actions and promotions reflect what your customers need and are interested in?

Enrolling New Distributors.
Similar to tracking your customers, you can measure enrollment by keeping tabs on the number of new distributor sign-ups. Again, make sure you’re tracking this metric company-wide and in your leader groups to get a better picture of how you’re doing.

Supporting Distributors.
You can measure distributor support by tracking their retention rate and monitoring the number of advancements you see in your plan. And, by seeing how this works for groups under specific leaders, you can compare that data to retention and advancement rates organization-wide to find trouble spots.

Now that you’ve started monitoring the data around those actions your distributors and customers are taking, how do you know where the issues are? Can you do a better job of rewarding important activities?

To find trouble areas, start by deciding on benchmark numbers for healthy actions to compare to the data you find. Once your goals of healthy, direct-selling activity are set, you’ll be able to make informed comparisons.

If the performance of your smaller, leader groups in one metric is a lot different than the numbers you’re seeing organization-wide, it’s probably best to focus on improving your training. Making good practices more standardized among your salesforce will help you level out that variance.

If your numbers don’t fluctuate much across your organization but are lower than you want to see, chances are the issues are stemming from something at the corporate level—either your comp plan or the business-building methods you prescribe to your salesforce.

Remember, too, that if you find numbers that meet your goals initially, you’ll still need to dig deeper to understand those actions on a smaller scale.

Now that you know where your best-performing distributors are, you can give better rewards to the people that are making the biggest difference in your organization. Giving credit where it’s due will set a great example for budding distributors and help establish productive patterns throughout your salesforce.

So, is your compensation plan rewarding the right behaviors? Many direct selling companies are missing out on the opportunity to find out by not paying attention to their commission data. If you can begin to take a focused look at the numbers that drive your business’s most important actions, you can really see if you’re rewarding the right behaviors and where you can work on your strategy to do that better.

To learn more about InfoTrax and getting the most out of your data, explore our commission software options here.




Your email address will not be published. Required fields are marked *

  • I don’t even know how I ended up here, but I thought this post was good. I do not know who you are but definitely you are going to a famous blogger if you aren’t already 😉 Cheers!|

  • Hello! I simply wish to give you a huge thumbs up for the excellent information you’ve got here on this post. I am coming back to your blog for more soon.|

  • I appreciate reading through your internet site. Thanks a lot!

  • I am sure this piece of writing has touched all the internet viewers, its really really nice post on building up new webpage.|

  • Great blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple tweeks would really make my blog stand out. Please let me know where you got your design. Thanks|

  • My brother recommended I might like this web site. He used to be totally right.
    This post actually made my day. You cann’t consider simply
    how a lot time I had spent for this information! Thanks!

  • Do you mind if I quote a few of your posts as
    long as I provide credit and sources back to your blog?
    My blog site is in the exact same niche as yours and my visitors would definitely benefit from a lot of the information you provide here.
    Please let me know if this okay with you. Thanks a lot!

  • Hello there! Would you mind if I share your blog with my facebook group?
    There’s a lot of people that I think would really appreciate your content.
    Please let me know. Thanks

  • I’ve been exploring for a little bit for any high-quality
    articles or blog posts on this sort of space . Exploring in Yahoo I finally
    stumbled upon this web site. Studying this information So i’m glad to express that I’ve an incredibly just right uncanny feeling I came upon exactly what I needed.
    I such a lot no doubt will make certain to don?t forget this site and
    provides it a glance regularly.

  • I do not even know how I ended up here, but I thought this post was good.

    I do not know who you are but definitely you are going to a famous blogger if you are not already 😉 Cheers!

  • What a information of un-ambiguity and preserveness of precious
    know-how on the topic of unexpected feelings.

  • I’m not sure where you are getting your information, but good topic.
    I needs to spend some time learning much more or understanding more.
    Thanks for excellent info I was looking for this info for my mission.

  • Hi there Dear, are you truly visiting this website regularly,
    if so afterward you will absolutely take nice experience.

  • hey there and thank you for your information – I’ve definitely picked up anything new from right here.
    I did however expertise several technical points using this website, since I experienced to
    reload the website many times previous to I could get it to load properly.
    I had been wondering if your web host is OK?
    Not that I’m complaining, but slow loading instances
    times will sometimes affect your placement in google and can damage your quality score if ads and marketing with Adwords.
    Well I am adding this RSS to my e-mail and can look out for a lot more
    of your respective intriguing content. Make sure you update this again soon.

  • If you are going for most excellent contents like me, simply visit this site everyday
    since it gives quality contents, thanks

  • Appreciating the time and energy you put into your blog and
    in depth information you provide. It’s good to come across a blog every once in a while
    that isn’t the same old rehashed information. Wonderful read!
    I’ve bookmarked your site and I’m including your RSS feeds to my
    Google account.

  • It’s remarkable for me to have a web page, which is helpful in support of my
    know-how. thanks admin