Three Types of Direct Sales Compensation Models

Compensation is the payment or profit given to someone in exchange for a work or sales done to a certain company or business. It could be in a form of salary, incentives, commissions or percentage, benefits and so on. In direct sales industry compensation models are set up as single level or multi level compensation. In single-level compensation plan representatives are paid solely on one’s sales while in multi-level compensation plan they earn commission on both their sales and of those they bring into the company. Direct sales business needs the right compensation model in order to work, MLM software companies offer these plans with a suitable MLM software pricing created for specific clients. There are a lot of variations of compensation plans out in the market and each one of them also has its different MLM software pricing depending on the model and the software company that created it. Each of these compensation plans are extracted from different major types of compensation models.

Let’s discuss 3 types of compensation models. First is the Unilevel or single-level plan this is also associated with the so called stair step break away plan, here the recruits or representatives does not grow or advance in position other than as distributors, so basically they just earn according to their performance without any promotion or advancement. However a breakaway plan is still considered unilevel but with the flexibility to encourage and motivate distributors to perform well in order to advance in rank after meeting a certain goal. Next is the grid or matrix plan the representatives here is limited only to a certain number of recruits. There is practically an automatic filling of spots; usually it works well with companies whose products are used personally by the distributors than being sold to other people. Lastly we have the so called binary or multi-level plan the distributor here is allowed to occupy one or more business centers each limited to two down line legs. Compensation here is based on group volume rather than percentage of sales of multiple levels of distributors. Meaning payment is volume driven and not level driven. Sales are being balanced in both legs to qualify for commissions, which in turn are paid at certain points when target levels of group sales are met. Here group cooperation is encouraged it requires team work because payout is on group volume and requires balance in each leg to be eligible for payout.

Choosing the right compensation model and software that has the ideal MLM software pricing offered by different software vendors is an important factor to consider guaranteeing success in the direct sales industry.

Basic Elements in Measuring E-Mini Market Strength

There are very few e-mini trading sources that don’t, at some point, emphasize the importance of trading with the trend. This article is no different; I highly recommend focusing on trading with the trend. However, not all trends are created equal and every trend begins to falter and finally reverse. Obviously, the best time to be trading the trend is when it is peaking and not when it is declining and strength.

But how do you know when and e-mini trend is especially strong and when it is entering a weak phase?

Interestingly enough, I generally show a high level of disdain for indicators and oscillators as primary tools for entering and exiting e-mini trades. On the other hand, indicators and oscillators are especially useful in developing an understanding of the underlying strength of a trend. As a trend lengthens, I tend to look to my indicators to see if there are any divergences in trend indications and price movement. For example, if the price has been rising in a trend and been confirmed throughout the course of the trend but began to show divergence (divergence would be an oscillator moving in a direction opposite the price movement, in this case) I start to become suspicious about the strength of the trend. While divergence signals may not point to the exact bar where the trend will in end, it should put any competent trader on notice that the trend is weakening.

When divergences begin to develop, there are two possible outcomes; the trend will resume in direction and strength or the trend will continue to falter and decay. Of course, repeated divergences in succession and on different indicators or oscillators would certainly put me on notice that the possibility for a trend change could be in the offing.

Additionally, I think it is important to keep an eye on volume during a trend. When I see a marked change in volume, especially with an increase in volume, my suspicions become even more pronounced.

A simple observation of the price action as the trend progresses can also yield significant clues as to the strength of a trend. Usually the end of a trend is marked by ragged price action and deeper retracements. You will often see the divergence of price action and an indicator as the price action becomes more ragged. A trend line will emphasize the weakening price movement, especially when the retracements stop at closer and closer intervals to the trend line, or temporarily violate the trend line.

As you can see, there is no single factor that I use in determining the strength of a trend line. I use a constellation of factors that relate similar information to determine the underlying strength of a market trend.

In summary, we have had a very brief look at market strength and trends and identified some factors that may indicate the weakening of a trend. Those factors are divergent indications, volume fluctuations, and erratic price action. Once the directional movement has slowed it may form a channel or reverse direction. Only observation will give you, as the trader, the proper information on which to act. Don’t trust any one indication of a weakening trend, but look for concerted indications of a change in price direction.

Marketing 101: 5 Direct Marketing Tips

Marketing is one of the most complex aspects of any business and getting it right can be tricky. Direct marketing is one of a host of marketing tools that can be very effective if done well but this is often easier said than done. So here are some direct marketing tips to help you get your direct marketing campaign on track.Tip 1 Decide who you are going to target and which media you are going to useKnowing who your ideal customer is means you can target your campaign well. It is also extremely important to decide early on whether your campaign is going to be by direct mail, telephone, newspaper or magazine ad?Tip 2 Always do a test campaignSeasoned marketers advise that a test campaign is a must whether you are just starting out or have done a number of direct marketing campaigns before. This is one of the lesser known direct marketing tips. A test campaign helps you minimize risk but most importantly since you will be keeping records of what you do and the responses you receive it will provide valuable information about your customers allowing you to build a database and fine tune your campaign to generate high responses and get maximum conversions.Tip 3 Develop benchmarksAscertain what the usual response and conversion rates are for the media you are going to use for your direct marketing campaign as they can range from 5% to 40 or 50%. This piece of research can help you make realistic projections and prepare yourself mentally and financially should you not get the amount of responses you wanted. The aim here is to minimize failure. Proper preparation means your campaign may be better than average and may beat the odds.Tip 4 Be civil and politeWhether your campaign is in writing or via telephone always be civil and polite to your potential customers. Being rude and offensive, mispronouncing names or spelling them wrong can alienate customers.Tip 5 Make sure your customers know they are valuedIf you’re operating from a list of clients who have purchased products or services from you before little things like birthday or holiday greetings and special discounts go a long way to letting them know they a valued and can increase the likelihood that they would purchase from you again. They are also more likely to recommend your business to their friends or relatives who may be looking for similar products or services.If you’re operating with a brand new list or cold calling a free gift for responding or placing an order can make a difference between success and failure. This goodwill gesture need not be expensive but it can set you apart from your competitors, after all everyone loves receiving gifts and feeling valued.This is one of the best direct marketing tips that you can incorporate into your campaign strategy and one that could increase response rates considerably and give you maximum conversions for your efforts.