A Comprehensive Guide to Bonuses, Commissions, and Incentives - PowerPoint PPT Presentation
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A Comprehensive Guide to Bonuses, Commissions, and Incentives
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Direct selling being a successful model from past years has always provided opportunities to people in a long way. Distributors, who are the essential part of the direct sales business should be retained well for the success of the business. For this, the companies should provide them with attractive and exciting opportunities in the form of bonuses, commissions and incentives. When considering the differences between commission, bonus and incentive it's important to understand that each one has its own specific purpose. A bonus is usually given for an individual's performance. The companies can decide a particular threshold value for which the distributors achieve and then they can receive the bonus. Commissions is typically a percentage of the sale the distributors have made. Incentives are used by companies to motivate their employees to go above and beyond in order to reach their goals. – PowerPoint PPT presentation
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Title: A Comprehensive Guide to Bonuses, Commissions, and Incentives
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Bonus, Commissions and Incentives in Direct Sales
- Importance of each terms in direct sales business
https//www.epixelmlmsoftware.com/
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Introduction
- For a direct sales business, it is important to
appreciate a distributors efforts. - Direct sales companies can appreciate their
distributor efforts by compensating them in the
form of bonuses, commissions, and incentives. - At first, these seems to be similar but each has
its own benefits for satisfying the distributors.
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Bonus
Incentives
Commissions
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BONUS
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- Bonus are given for distributors for their
individual performance. - Direct sales companies can reward their
distributors after they reach a particular growth
threshold which has been set by the company. - Providing bonus help direct sales distributors to
engage more and also helps in increasing their
productivity.
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Types of bonuses
Referral bonus
Profit sharing
Milestone bonus
Bonus
Spot bonus
Longevity bonus
Non-cash bonus
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COMMISSIONS
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- Commissions are provided for the distributors for
the sales they have made. - Direct sales companies can provide a percentage
of commissions to the distributors for the
product they have sold. - These sales centric commissions help direct sales
companies to boost their distributor
productivity.
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Types of commissions
Sales commissions
Base salary plus commission
Gross margin commission
Residual commission
Revenue commission
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INCENTIVES
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- Incentives are a kind of extra reward given for
the distributors spontaneously by the company. - Incentives can be in any forms such as discounts,
offers, coupons, goodies, or rewards. - Providing incentives can boost the distributor
productivity and motivate them to perform better.
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Types of incentives
Pre-sales incentives
Awards and recognition
Referral incentives
Rank or tier-based incentives
Omnichannel incentives
Fun gifts
Loyalty points
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Read more about bonus, commissions and
incentives www.epixelmlmsoftware.com/blog/bonus-c
ommission-incentive
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THANK YOU
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