cations powered their way to sales growth unparalleled by any previous traditional or direct selling standard, while many direct selling company executives ignored the MLM revolution regarding it as a distant cousin not to be taken seriously.

As a direct selling corporate executive hoping to build a strong and geometrically growing organization to help your distributors meet their financial goals, understanding the compensation plans of the growing number of MLM companies could become a full time job in itself. “Stair Step - Unilevel - Matrix - Binary - Australian ... it’s enough to drive even the most experienced corporate executives mad. I’ve debated theory for hours on how the compensation plan is like a piece of art with every twist and turn, every qualifier and level, every discount incentive or bonus pool carrying a specific action and positive reaction from the distributor base. New Age compensation plans are no longer “pure” MLM. They attempt to be all things to all people and

The direct selling industry is changing and changing rapidly. In today’s competitive market, almost every Direct Selling Company that has reached the pinnacle of success began its business by offering unique services or products that served a recognized need. But a multi million-dollar growth pattern was not sustained by quality product alone. By necessity the company provided a solid compensation plan and marketing concepts that offered a significant financial opportunity to the serious minded distributor. In addition it was critical to provide the “consumer/ distributor” and the part timer an easy way to stay involved at their own specific levels of interest. Add to this motivated professional sales leaders and a competent management team, and you have a textbook formula for success. However, my continued research into this ever-evolving industry has made me aware of a “paradigm shift” in progress in compensation plans, direct selling methods, support and communication. In fact, the direct sales single level compensation structure, in years past, ruled.

In an article in Network Marketing Magazine, according to the president of the Direct Selling Association, Neil Offen, Multilevel Marketing companies accounted for 25% of the organization’s membership in 1990 with 75% being direct selling companies. Now, verifying a new age of marketing has arrived commanding the long awaited accompanying respect, 77.3% of DSA members are structured as MLM. And as these new age MLM companies demonstrate growth unparalleled by previous standards, even the established pioneers of MLM are feeling the pressure.

But, look what has happened for the MLM distributor today. The personal computer (PC), enhanced telephone services, and the Internet have created an environment for the tremendous increase in the success of the Multilevel Marketing home based business.

The most important tool in sponsoring today is the telephone. Self initiated three-way and six-way conference calling is now available from most local phone service carriers, thus eliminating geographic restrictions. The Internet is not only the vehicle for quick enrollment but also solves the instant support information need. Payment for distributor kits and product can now be easily handled over the phone or Internet by credit or debit cards making possible the same-day shipping of goods. We can literally complete a sponsoring transaction and add next day delivery services, to having the new recruit in business in just 24 hours.

Only a few people knew what the Internet was, just a few years ago. Now, many companies are finding that they can use the Internet to extend their sales and marketing reach, to improve the quality of their customer service and even to conduct multimedia conversations with their distributors. Today, you can send bulk e-mail over the Internet to your potential as well as existing customers and distributors for the price of a local phone call and a few hundred dollars spent on-line. The same message would cost a great deal more, due to printing and postage costs, if sent by conventional mail. In short, the Internet is easily accessible, quick and cost-effective all over the world 24 hours a day, seven days a week.

The internet has altered communication and traditional business thinking forever, and, in the same way, Multilevel Marketing has infected the direct selling world with such a powerful energy that even the most conservative and oldest of direct selling companies are taking notice. Unlike the Internet’s unexpected tidal wave effect on business, MLM is a known methodology traced back over 50 years. Although considered a fringe concept by the established direct selling community, MLM flourished spreading its tentacles and silently implanting itself creating a growing army of mostly part time independent contractors. Soon MLM accounted for billions of dollars of product sales. Companies like Nu Skin, HerbalLife, A.L. Williams, Malaluca and Excel Telecommunications powered their way to sales growth unparalleled by any previous traditional or direct selling standard, while many direct selling company executives ignored the MLM revolution regarding it as a distant cousin not to be taken seriously.

As a direct selling corporate executive hoping to build a strong and geometrically growing organization to help your distributors meet their financial goals, understanding the compensation plans of the growing number of MLM companies could become a full time job in itself. “Stair Step - Unilevel - Matrix - Binary - Australian ... it’s enough to drive even the most experienced corporate executives mad. I’ve debated theory for hours on how the compensation plan is like a piece of art with every twist and turn, every qualifier and level, every discount incentive or bonus pool carrying a specific action and positive reaction from the distributor base. New Age compensation plans are no longer “pure” MLM. They attempt to be all things to all people and

sales single level compensation structure, in years past, ruled.

In an article in Network Marketing Magazine, according to the president of the Direct Selling Association, Neil Offen, Multilevel Marketing companies accounted for 25% of the organization’s membership in 1990 with 75% being direct selling companies. Now, verifying a new age of marketing has arrived commanding the long awaited accompanying respect, 77.3% of DSA members are structured as MLM. And as these new age MLM companies demonstrate growth unparalleled by previous standards, even the established pioneers of MLM are feeling the pressure.

But, look what has happened for the MLM distributor today. The personal computer (PC), enhanced telephone services, and the Internet have created an environment for the tremendous increase in the success of the Multilevel Marketing home based business.

The most important tool in sponsoring today is the telephone. Self initiated three-way and six-way conference calling is now available from most local phone service carriers, thus eliminating geographic restrictions. The Internet is not only the vehicle for quick enrollment but also solves the instant support information need. Payment for distributor kits and product can now be easily handled over the phone or Internet by credit or debit cards making possible the same-day shipping of goods. We can literally complete a sponsoring transaction and add next day delivery services, to having the new recruit in business in just 24 hours.

Only a few people knew what the Internet was, just a few years ago. Now, many companies are finding that they can use the Internet to extend their sales and marketing reach, to improve the quality of their customer service and even to conduct multimedia conversations with their distributors. Today, you can send bulk e-mail over the Internet to your potential as well as existing customers and distributors for the price of a local phone call and a few hundred dollars spent on-line. The same message would cost a great deal more, due to printing and postage costs, if sent by conventional mail. In short, the Internet is easily accessible, quick and cost-effective all over the world 24 hours a day, seven days a week.

The internet has altered communication and traditional business thinking forever, and, in the same way, Multilevel Marketing has infected the direct selling world with such a powerful energy that even the most conservative and oldest of direct selling companies are taking notice. Unlike the Internet’s unexpected tidal wave effect on business, MLM is a known methodology traced back over 50 years. Although considered a fringe concept by the established direct selling community, MLM flourished spreading its tentacles and silently implanting itself creating a growing army of mostly part time independent contractors. Soon MLM accounted for billions of dollars of product sales. Companies like Nu Skin, HerbalLife, A.L. Williams, Malaluca and Excel Telecommunications powered their way to sales growth unparalleled by any previous traditional or direct selling standard, while many direct selling company executives ignored the MLM revolution regarding it as a distant cousin not to be taken seriously.

As a direct selling corporate executive hoping to build a strong and geometrically growing organization to help your distributors meet their financial goals, understanding the compensation plans of the growing number of MLM companies could become a full time job in itself. “Stair Step - Unilevel - Matrix - Binary - Australian ... it’s enough to drive even the most experienced corporate executives mad. I’ve debated theory for hours on how the compensation plan is like a piece of art with every twist and turn, every qualifier and level, every discount incentive or bonus pool carrying a specific action and positive reaction from the distributor base. New Age compensation plans are no longer “pure” MLM. They attempt to be all things to all people and

ow available from most local phone service carriers, thus eliminating geographic restrictions. The Internet is not only the vehicle for quick enrollment but also solves the instant support information need. Payment for distributor kits and product can now be easily handled over the phone or Internet by credit or debit cards making possible the same-day shipping of goods. We can literally complete a sponsoring transaction and add next day delivery services, to having the new recruit in business in just 24 hours.

Only a few people knew what the Internet was, just a few years ago. Now, many companies are finding that they can use the Internet to extend their sales and marketing reach, to improve the quality of their customer service and even to conduct multimedia conversations with their distributors. Today, you can send bulk e-mail over the Internet to your potential as well as existing customers and distributors for the price of a local phone call and a few hundred dollars spent on-line. The same message would cost a great deal more, due to printing and postage costs, if sent by conventional mail. In short, the Internet is easily accessible, quick and cost-effective all over the world 24 hours a day, seven days a week.

The internet has altered communication and traditional business thinking forever, and, in the same way, Multilevel Marketing has infected the direct selling world with such a powerful energy that even the most conservative and oldest of direct selling companies are taking notice. Unlike the Internet’s unexpected tidal wave effect on business, MLM is a known methodology traced back over 50 years. Although considered a fringe concept by the established direct selling community, MLM flourished spreading its tentacles and silently implanting itself creating a growing army of mostly part time independent contractors. Soon MLM accounted for billions of dollars of product sales. Companies like Nu Skin, HerbalLife, A.L. Williams, Malaluca and Excel Telecommunications powered their way to sales growth unparalleled by any previous traditional or direct selling standard, while many direct selling company executives ignored the MLM revolution regarding it as a distant cousin not to be taken seriously.

As a direct selling corporate executive hoping to build a strong and geometrically growing organization to help your distributors meet their financial goals, understanding the compensation plans of the growing number of MLM companies could become a full time job in itself. “Stair Step - Unilevel - Matrix - Binary - Australian ... it’s enough to drive even the most experienced corporate executives mad. I’ve debated theory for hours on how the compensation plan is like a piece of art with every twist and turn, every qualifier and level, every discount incentive or bonus pool carrying a specific action and positive reaction from the distributor base. New Age compensation plans are no longer “pure” MLM. They attempt to be all things to all people and

. The same message would cost a great deal more, due to printing and postage costs, if sent by conventional mail. In short, the Internet is easily accessible, quick and cost-effective all over the world 24 hours a day, seven days a week.

The internet has altered communication and traditional business thinking forever, and, in the same way, Multilevel Marketing has infected the direct selling world with such a powerful energy that even the most conservative and oldest of direct selling companies are taking notice. Unlike the Internet’s unexpected tidal wave effect on business, MLM is a known methodology traced back over 50 years. Although considered a fringe concept by the established direct selling community, MLM flourished spreading its tentacles and silently implanting itself creating a growing army of mostly part time independent contractors. Soon MLM accounted for billions of dollars of product sales. Companies like Nu Skin, HerbalLife, A.L. Williams, Malaluca and Excel Telecommunications powered their way to sales growth unparalleled by any previous traditional or direct selling standard, while many direct selling company executives ignored the MLM revolution regarding it as a distant cousin not to be taken seriously.

As a direct selling corporate executive hoping to build a strong and geometrically growing organization to help your distributors meet their financial goals, understanding the compensation plans of the growing number of MLM companies could become a full time job in itself. “Stair Step - Unilevel - Matrix - Binary - Australian ... it’s enough to drive even the most experienced corporate executives mad. I’ve debated theory for hours on how the compensation plan is like a piece of art with every twist and turn, every qualifier and level, every discount incentive or bonus pool carrying a specific action and positive reaction from the distributor base. New Age compensation plans are no longer “pure” MLM. They attempt to be all things to all people and

cations powered their way to sales growth unparalleled by any previous traditional or direct selling standard, while many direct selling company executives ignored the MLM revolution regarding it as a distant cousin not to be taken seriously.

As a direct selling corporate executive hoping to build a strong and geometrically growing organization to help your distributors meet their financial goals, understanding the compensation plans of the growing number of MLM companies could become a full time job in itself. “Stair Step - Unilevel - Matrix - Binary - Australian ... it’s enough to drive even the most experienced corporate executives mad. I’ve debated theory for hours on how the compensation plan is like a piece of art with every twist and turn, every qualifier and level, every discount incentive or bonus pool carrying a specific action and positive reaction from the distributor base. New Age compensation plans are no longer “pure” MLM. They attempt to be all things to all people and can be better categorized as hybrid systems. A another level in depth here – a little more discount there, compression, roll-up, pass-through bonuses, infinity bonuses, — We need an MLM dictionary just to decipher the written explanations of the plans.

Please take note, if you are considering the “Decision to Transition” from your present compensation structure to an MLM model,

Radical change may be necessary but don’t jump on the first fad compensation plan that rings your chimes. Your corporate and product mission along with distributor culture must be considered. Adopting a plan that maintains your long established principles while incorporating current trends should be your goal.

Today’s plans must address the following:

1. Cost of new distributor entry sales kit should be modest making it easy to get started.

2. Program should incorporate Auto-Ship ordering programs with a bonus volume relationship to monthly distributor qualifications.

3. Distributor monthly maintenance qualifications to receive downline organization bonuses should be reasonable and achievable for the consistent part timer as well as the dedicated and committed full time participant.

4. Early payout of initial commissions and bonuses paid weekly or bi-weekly is becoming the norm.

5. A good plan provides bonuses balanced between the beginning MLMer who is just trying it on for size, the committed part time business builder who is building an organization through multiple levels, and the totally committed leader who can benefit from bonuses from sales generated by a significant downline community.

6. Plan should mandate distributor minimum personal retail sales while rewarding for building an organization in depth.

7. A “Plus” plan. This means that there are no sponsor disincentives created by lost or reduced centers of profit as the downline advances that might encourage leaders to suppress downline advancement. All earned bonus levels are in addition to those previously earned, never in place of them.

8. Compression of levels or generations should occur to properly reward performers through maximum depth of income stream.

9. Distributor ranks and titles should be permanent once received, but distributor bonuses should be “Paid-as” the position for which they actually qualify during the pay period.

10. The plan should be “Capitalistic” in its design to reward the business builders who contribute regularly to the company growth. Beware of plans that are “socialistic” in design dividing available profits among many and encouraging a something for nothing philosophy.

If you are a traditional direct sales company considering transitioning to MLM or an established MLM just trying to play catch up in the evolving marketplace, a competitive compensation plan tied to today’s technology is only part of the equation for maintaining and growing your market position. You will be competing for your distributor’s time, not just their product sales or consumption loyalty. Show them how to leverage their time while geometrically growing their income and you will put your company in the winner’s circle.

Of course, a hot compensation plan and technology cannot replace person-to-person communications. People still do business with people. For this reason, the more you embrace technology, the harder you should work at building personal relationships with your distributors. You should make yourself accessible at every opportunity by arranging occasions to bring you together with distributors face-to-face. But, keep in mind that the world of sales and marketing is changing rapidly. Some companies are recognizing these opportunities and rushing to reinvent themselves. And, out of the need to stay competitive, others are watching intently and will soon follow. As we have heard it said many times in business, “Lead — Follow — or Get Out of the Way!”