Tuesday, June 8, 2010

Money matters, but it’s not the only thing

To date, the #1 reason Consultants have joined Paperly is because they love our products.  The #2 reason is that they’re looking for a fun, stay-at-home business that isn’t overly saturated in their area.  Not until you get to #3 does the word “income” or “money” start to appear.

As Paperly’s co-owner, I’m VERY pleased to know that folks are joining Paperly for the right reasons!  After all, if my Consultants are not passionate about our products, then their “selling” of Paperly’s stationery is essentially a farce, and ultimately, that Consultant will fail.

That said, even though money is #3 on the list, it does matter.  As Paperly’s CEO, I need to ensure Consultants see the rewards of their efforts… and fast.  Thus, Paperly has begun the complex task of reviewing its compensation plan.  To me, Paperly’s comp plan needs to achieve the following 3 objectives:

1. Enable the “Seller” to succeed
Not every Paperly Consultant wants to recruit or manage a team.  Many simply enjoy selling Paperly’s products.  As such, I need to help these Consultants earn a very competitive commission on their personal sales, plus reward them with significant bonuses when they exceed reasonable targets.

2. Let the “Leaders” thrive
Some Consultants want to share their passion for Paperly with others.  They relish sponsoring others.  They love the challenge of building, managing and leading a team.  As such, I want these Consultants to earn a commission on the success of their direct recruits, their recruits’ recruits, and so on.  To me, a team leader spends a significant portion of her time cultivating her team, and therefore, needs to be rewarded when her team succeeds.

3. Provide plenty of “Known Surprises”
What’s a “known surprise”?  Imagine joining Paperly, reviewing the comp plan, and seeing that one day, you may earn a $100 bonus when X or Y occurs.  Sure, you know that bonus exists, but you forget about it, because you’re too busy falling in love with your Starter Kit and booking parties.  Then, a month or two pass, and you see in your commission check an extra $100 because you achieved X or Y.  Wow!  What a wonderful surprise, even though you knew it existed.  To me, a Consultant needs a constant shot of such surprises – often known but forgotten – that makes her smile and say, “yahoo!”

All 3 of these objectives will underlie Paperly’s future comp plan.  We’re confident it’ll enable Paperly to continue its torrid growth.  Personally, I can’t wait to start writing bigger and bigger commission checks to my Consultants.

Jay Rudman, CEO * Co-Owner, Paperly

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