Custom Write Ups
Comp plans are part of it, but you don't just call a Software Vendor and say... "Hey, I want a quote on Software... we have a straight-forward Binary." The Devil is in the Details, especially with MLM, Direct Selling and Party Plan Companies. Any attempt to corner someone for a quote, without providing your specifications will almost certainly end in differences in expectations for yoursel and the MLM Softare Vendor. A Custom Write Up, that is to say, a System Compensation Plan Specification, or System Spec for short, is critical to verbalizing your expectations, that you may determine if an MLM Software Vendor is capable of providing the fundamental requirements, much less their ability to deliver, support and help you to grow.
A Solid Comp Plan is important... it can Motivate them to Recruit for a Recruiting Bonus... a no-no, it can Motivate to make False Representation of Potential Income... a no-no, it can Motivate to make False Representation of the Product... a no-no, it can Motivate Sales Reps to cultivate their own Customer Base, in order to earn are commission or benefit on those Customer Sales... yes.. this is a good thing! Surprisingly, I did have an MLM Attorney quote from my playbook, during a call once... in his words "Customers are Good for Business, I repeat, Customers are Good for Business." These words resonate with me, as they encompass the foundation of a Solid Compensation Plan... Customers are Good for Business!.
The Ying and Yang of a Compensation Plan, is found in the delicate balance of design... lending attractiveness to sales reps, regarding potential reward for selling, with the corporate need to be successful, profitable, and sustainable.
The Number 1 Mistake made by New and Existing companies... Letting the Tail wag the Dog. In other words, allowing your Sales Reps, or those claiming to be successful in another company, to dictate the details of your Compensation Plan. LISTEN CLOSELY... You are Wearing an Owners Hat... Every decision you make, including details expressed in your compensation plan can have positive or negative impacts on the marketability, sustainability, profitability, as well as have legal implications. Don't let the Tail wag the Dog. Don't fall for a former Distributor, that printed a label for their lapel that says 'Consultant.'