The art of composing compensation plans

Each MLM company needs compensation plan. Correctly matched type of compensation plan can make company strong or became its Achilles’ heel. There are significant amount of such plans but will one of them flawlessly suit your company?

Tailor-made plan considers all aspects of specific company – type of product, network structure and even features of development. Developed plan is similar to well fitted suit that stresses strengths of your company and therefore attracts new participants. Changes are sings of movement and development so current partners will appreciate introduction of such compensation plan too.

Main features

Each compensational plan consists of three main parts:

  • Ranking system and features of interactions between ranks.
  • Conditions of transition between ranks.
  • Rewarding system.

All aspects of compensation plan are connected. For example most suitable rewarding system depends on type of networks architecture. Main point in developing plan is about correct matching of all those aspects. This is main difference between efficient plans and picked on a whim.

How we do it?

To develop best compensation plan our team uses set of specific calculations based on modeling with main values. This approach allows picking type of network structure, bonuses and payouts for specific product. Result of all applied calculations is a set of rules that provides just conditions for distributors on each level.

Released plan isn’t static. It has significant potential for further development. It will grow with your company. So choice between well fitted, developable plan and one of cloned solutions with zero potential is obvious.