Sales offices seem to believe that the more complicated they make their compensation plan, the more attractive it will be to their agents.
This isn’t the best approach for a couple of reasons:
1️⃣ If you can’t systematically, accurately, and cost-effectively calculate downline residuals, your comp plan is flawed from the start. Remember that this activity is non-revenue generating. Do you want to spend too much time figuring out what’s already taken place or out driving more sales?
2️⃣ If your agents can’t easily recalculate their own compensation with what you’ve provided them, how can you expect them to trust you? A relationship without trust 👉 flawed.
We’ve seen simple comp plans work quite well. And it’s a win for both the sales office and its agents.
Before rolling out any new comp plan, first, ask yourself these two questions:
1️⃣ Can I automate this calculation and reporting?
2️⃣ Can I provide transparent reporting to all parties involved?
The winning plan is fully automated and provides complete transparency. And most importantly, all parties feel like they are receiving fair value in return for their contribution.