Compensation Plan Design
MLM-CC’s expert team will help you to determine the best compensation plan design to meet your desired behavior and compensation strategy. MLM-CC will work with your product, margins, culture, sales and marketing strategy to design your plan.
Initial Design Meeting:
Development Meetings
Documentation
Final Commission Plan Review Meeting:
Training
Support
Initial Design Meeting:
Compensation Plan Design Meeting
-This is a 60 to 90 minute meeting to assess your needs.
-MLM-CC will consult with your team to determine the best compensation plan design that will meet the desired behavior and compensation. MLM-CC will work with your unique product margins, product pricing, culture, and sales and marketing strategy to design your plan.
-Based on discussions with you and your needs, we do an initial design of your compensation plan. Then we schedule additional meetings where the plan will be reviewed with you and any additional modifications will be made.
Development Meetings
As needed multiple additional development meetings will be held in the development and refinement of your compensation plan. This is where you receive guidance in what may or may not be legal and with advice to review the area in question with your MLM attorney. You will also receive professional opinions on the strengths and weaknesses of your compensation plan and how to adjust for a fair and profitable plan.
Documentation
Once a plan is agreed upon, MLM-cc will provide complete documentation of the plan. The compensation plan design phase includes the following documentation written for your software provider:
Description of rank advancement rules
To include qualification requirement where applicable
-Number of ranks
-Personal volume rules (initial and maintenance)
-Group volume rules
-Organizational volume rules
-Customer rules
-Autoship rules
Description of each commission payout rules
To include where applicable
-All commission types (base commission, fast start)
-Commission periods (daily, weekly, monthly)
-Type of compression used.
-Volumes used
-Commissionable volume as it relates to personal volume.
Definitions of terms used
Complete detail of any terms used in the plan
Final Commission Plan Review Meeting:
In one or more final compensation plan review meetings, the following is covered
–review the overall plan
–cover the documentation document in detail
–discuss your chosen software vendor’s needs and coach you on how to deal with them
Training
MLM-cc is available to provide training to your selected team on your compensation plan including:
–We can provide training and support to your chosen computer software vendor to provide programming accuracy
–We can provide training to your corporate executives to provide in-depth training on the comp plan
–We can provide training to your customer service staff to provide extensive training on the comp plan
–In conjunction with you, we can provide training for your initial key group of distributors
Support
As needed there are 2 areas of support.
–Support
MLM-cc is available to assist your corporate team to convey fully the details of your compensation plan to their understanding.
–Validation
MLM-cc can provide compensation plan validation to confirm correct payouts.
Validation is critical as with most direct selling companies your commission plan is your largest single expense.
Industry Analytics
WINz Analytics Engine does what NO other analysis technology can do for the direct sales and MLM compensation plans. You now have a powerful analytics technology tool at your disposal. It provides you with accurate data for making good business and growth decisions for your company.
Compensation Validation of Actual Payout
Plan Comparison Between an Existing Plan and a New Plan
Plan Analysis and Recommendations
International Plan Analysis
Compensation Validation of Actual Payout
Calculating accurate payout is critical to your success. You receive over 20 years of extensive experience validating commission payouts.
You receive two kinds of validation:
- WINz Analytics Engine takes commission payout data for each distributor that earned a commission and compare it to how much commission they received.
- OR WINz Analytics Engine can validate by programming the compensation plan and running it through our software.
Included services:
- Analyze payout for accuracy.
- Interact with your software provider to answer any questions they have about programming your plan.
- Review technical documentation from your software provider.
- Prior to launch, we provide training on how to validate your compensation payout.
- Work with your commission team to validate the first four live commission runs.
Plan Comparison Between an Existing Plan and a New Plan
Without Company Data
All compensation plans change over time. We will compare your existing plan to a new plan that you are considering implementing at your company. We provide insights into how a compensation plan change will impact your company-wide payout and how it will impact your individual consultants or distributors.
Included services:
- Identify how the plan rewards key distributors.
- Compare your plan payout to industry standards.
- Identify how the new plan will change distributor payout.
- Consult on the plan transition phase.
Note: Does not include analytics.
With Company Data
WINz Analytics Engine does an initial analysis and two compensation plan changes for the negotiated price. For additional changes, the amount goes to cost per hour or a new fixed bid. WINz Analytics Engine requires existing data and payout to compare.
Included services:
- Import data. (Price negotiated prior to work.)
- Build your new plan.
- Run commissions using the new plan.
- Analysis with a comparison between old and new plan.
- Compare payout and rank achievement.
- Compare winner and losers.
- Compare across versions of the new plan.
Plan Analysis and Recommendations
With Company Data
In a plan analysis, WINz Analytics Engine takes one to two years of payout data from an existing plan and compare it to industry standards.
Included services:
- Analysis to identify strengths and weaknesses of your existing compensation plan.
- Compares the company payout to industry standards.
- The review analyzes payout, recruiting, retention, and rank advancement.
International Plan Analysis
With Company Data
WINz Analytics Engine analyzes international compensation plan payout.
Included services:
- Normalize payout data for comparison.
- Compare payout, recruiting, retention, and rank advancement across countries.
Distributor Research
We provide a third-party survey service to help you better understand what’s going on in your field. Using a third-party can increase the quality and volume of consultant or distributor feedback.
We design our surveys based on input from the company and high-quality survey design principles. We research your distributor attitudes and expectations and compare them to earnings and to the type of commissions earned. We can assess a variety of attitudes on selling, recruiting, retention, training, technology, product, and commissions earned using both quantitative and qualitative approaches. We then make recommendations based on the data we collect.
We can do open-ended interviews with consultants or distributors and complete a thematic analysis of the responses. In addition, we can find patterns in the text-based data.
We can also do textual analysis of existing distributor call center calls. If you have a record of call center reasons or recorded calls, we can mine the textual data to provide you with a high-level view of the predominant concerns of your distributors and give you evidence-based recommendations about how you can address those concerns.
Distributor Satisfaction, Earnings, and Technology Use Survey
Distributor Experience Interviews or Survey or Both
Customer Support Textual Analysis
Distributor Satisfaction, Earnings, and Technology Use Survey
Included services:
- Compare earnings groups to retention to find your sticking point.
- Compare earnings groups (or ranks) to distributor satisfaction.
- Compare earnings groups to commission type.
- Identify technology use.
- Compare earnings groups to technology use.
- Compare satisfaction to technology use.
- Compare earnings groups to first check timeline.
- Compare first check timeline to retention.
- Compare first check timeline to satisfaction.
Distributor Experience Interviews or Survey or Both
Included services:
- Identify why distributors start with the company.
- Identify why distributors stay with the company.
- Identify what activities distributors use in their business.
- Assess how distributors perceive corporate support.
- Identify areas distributors see need improvement.
Customer Support Textual Analysis
Included services:
- Identify the reasons distributors have for contacting distributor support.
- Connect distributor support experience to distributor satisfaction.
