Each year Ben Dixon, the NaXum CEO, compiles a list of the top trends the team has seen in the referral marketing space and shares the report with the Direct Selling Executives Forum.
Compensation Trends In Referral Marketing
The trends of the past that have given a black-eye to the direct selling or referral marketing space’s pyramid narrative have tended all to fit the story of the people at the top of an organization earning a larger percentage of the actual sale of a product than the person actually making a sale.
By leading the NaXum team, a company that actually tracks and calculates commissions for direct selling companies, we can share that the trends today have moved in a positive direction.
Paying The One Who Does The Work
Regardless of the price the retail customer pays for a product, you’ll see a trend where direct compensation is being made to the actual promoter who did the work in direct sales and party plan compensation plan.
Older commission plans at times ‘cut out’ the retail commissions (that were meant to pay the person doing the work) when a retail customer chose subscription pricing. This trend is going away as companies work to incentivize promoters to focus on retail customers who subscribe to services.
We see the trend expanding as referral marketing companies continue to structure themselves in a way to attract the hundreds of thousands of influencers on platforms like Instagram, Twitter, Facebook, and Youtube.
Compensation trends are also moving beyond rewarding sales to rewards-specific behaviors that lead to sales.
Weekly contests to give bonuses to the top 10 salespeople that had the most prospects attend the webinar, rewards for members with the longest daily streaks of winning their daily goals, and rewards for members who complete ‘micro-actions’ that contribute to your culture.
Companies are deploying sophisticated marketing platforms and predictive apps to track the actions their members actually take, so rewards can be given for winning daily goals in addition to real sales.
To download a full copy of the 2022 Direct Selling Trends Report, download the report here.
Follow NaXum on LinkTree for more articles in this series on trends within direct selling.
Ben Dixon loves referral marketing. His family found direct sales back in 2006 and had success using technology to create home-based businesses. Since 2010, Ben has focused on serving referral marketing, party plan, mlm, and direct sales companies across the globe with the technology they require to empower their passionate fans to virally grow their businesses.
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