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Structure, Ranks and Promotions

Most successful MLM companies have in excess of 20,000 active members. Even with a huge support team, it is impossible to train, motivate and manage that many people. It is therefore necessary to attract or develop and retain effective leadership. 

There are many reasons for effective leaders to join your business but one of the most important mechanisms for retaining them is paying them well. A leader that is being well paid will stay and good leaders make the difference!

But how do you know which of your members are potential leaders and how to reward them? The short answer is that you don’t! I have had many people join the team who I would have bet my bottom dollar would have made excellent leaders and they have failed dismally. On the other hand, I have had people who on the surface look mediocre and go on to lead massive teams. There is just no way to know!

The answer is, let the leaders pick themselves. By creating a promotional structure with specific goals, you can allow the leaders to bubble up to the surface. This is done via a combination of enforced structure and minimum sales volumes. 

As an example, you could create a rank called Bronze. To achieve this rank the member would need to be active and be required to recruit 2 active members into their front line. The result is an active team of 3 people. This proves that the recruiting member is capable of recruiting and of helping the new members become active.

Let’s take this to the next level and create a rank of Silver. If the recruiting member assists the two new recruits to achieve the rank of Bronze, they will have a 7-member team. A person who achieves this is showing themselves to have a slightly greater level of leadership skill. 

Companies normally have between 10 and 20 ranks. As the business grows, members achieve leadership ranks and, in this way, bubble to the top. More importantly, the higher their rank, the bigger their share of the commission pie. By using structure and sales volume to achieve ranks and then attaching specific ever-increasing commissions to these ranks, you not only identify your leaders but they automatically make progressively more money.

Warning!

You should never headhunt a leader from some other network, give them a high rank and reward them even though they have not achieved the necessary targets. If they are not able to rise through the ranks under their own steam, they are not worth having. I have seen many of my clients hire “amazing” leaders only to pay them a small fortune and receive very little in return.

Members who achieve the ranks and targets can pass this experience onto their team and develop an unshakable belief in the compensation plan and the company.