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- Level 7, Oasis Wing, Oasis Brunsfield Tower 3, No. 2, Jalan PJU 1A/7A, Oasis Damansara, 47301 Petaling Jaya, Selangor.
- +603-5031 3233
Compensation Plan Advisory
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Compensation Plan Advisory
An MLM (multi-level marketing) business compensation plan is a plan that outlines how commissions and bonuses will be paid to distributors in the company. There are many different types of MLM compensation plans. Still, they generally pay commissions on the sales made by the distributor’s team and bonuses for achieving certain sales or recruiting goals. Some common types of MLM compensation plans include the Binary Plan, Unilevel Plan, Stair Steps Breakaway plan and Matrix Plan. It is important to design a legal and fair plan, balancing the needs of the company and the distributor.
To design an MLM compensation plan, consider the following steps:
Define structure & Determine the compensation type
Decide on the number of levels and the number of members in each level. Choose between retail sales commission, binary, matrix, unilevel, or a hybrid model.
Set Commission Rate & Define Bonuses and Incentives
Determine the amount of commission to be paid for each product sold, and how it will be split between the members and the company. Offer bonuses for reaching certain sales targets, recruiting new members, and other milestones.
Establish the qualification criteria:
Determine the conditions for participating in the compensation plan, such as the minimum sales or recruitment requirement.
Communicate the plan clearly:
Clearly communicate the details of the plan to all members, including how they can earn money and what they need to do to be successful.unde sed ipsum nostrud omnis iste natus.
Monitor and adjust the plan:
Keep the plan transparent and understandable for all participants, and to regularly evaluate and update it if necessary.
It is also important to consider that many countries have laws and regulations on MLM, so it is essential to consult with a legal expert to ensure your compensation plan complies with the laws.
We assist clients with various aspects of MLM such as licensing compliance, operation, marketing plan and product development.
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15+ Years’ Experience in Direct Sales Multi-Level Marketing Business Consulting, that provide services and advice to companies that operate MLM business models.
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- Level 7, Oasis Wing, Oasis Brunsfield Tower 3, No. 2, Jalan PJU 1A/7A, Oasis Damansara, 47301 Petaling Jaya, Selangor.
- +603-5031 3233
- +603-7848 5801
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