Category Archives: Compensation Plans

How Does Compensation Plans Work

How Does Compensation Plans Work

By Margaret Gore


People generally go into business to make money and those who say they are not interested in the money aspect of the game are really just fooling themselves. Therefore compensation plans are very important to any business endeavor as this will be the primary reason to sign on to the company or business.


The ideal behind any compensation plan should be that it works as a good ongoing motivator. Goals should be reached because of the prime reason of wanting to be compensated as promised.


Therefore understanding the value of a good compensation plan will then contribute to successful sales records.


Though fairly rare, there is also the issue of over compensation. When over compensation occurs, those who benefit from it will no longer find the need to put in 100% effort as there would in actual fact be no need for it. This will also affect those who actually work towards the compensation only to find that it is not adequately designed.


For the internet marketing style businesses there are several avenues of being able to garner revenue through good compensation tools.

These may come in the form of retail profits, quick start bonuses, retail bonuses and others.


Though often not highly rated and sometimes even taken for granted the compensation plan of any endeavor should be given priority if it intends to attract the best and the most capable efforts and mindsets. Compensation plans are also what dictate the loyalty elements within any setup, thus providing good compensation plans is important if the endeavor intends to retain and cultivate some level of the said loyalty.


Compensation is an important factor that plays a dominant role in dictating just how much an individual is prepared to invest in terms of time and energy into any endeavor. Therefore understanding the concepts behind the various different 

compensation plans is important when it comes to deciding which one most suits an individual’s needs.

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