Are Your Leaders Working the Plan or Just Following Habit?

By Dan Jensen, President, Dan Jensen Consulting
Dan Jensen

A compensation plan can look strong on paper and still underperform in the field. The problem is often simple: leaders are not taught how to work it.

Many distributors build the way they were trained years ago at another company. They focus heavily on one leg, over-index on recruiting, or aim only for minimum qualifications. If those habits do not align with the current plan, income stalls.

To strengthen results:

1. Teach execution, not mechanics.

Explaining how commissions calculate is not enough. Define what leaders should prioritize each week and how those actions move them toward rank advancement.

2. Model balanced activity.

Plans typically reward selling, recruiting, and leadership development. Leaders who stay active in personal sales set the tone for duplication.

3. Build beyond minimums.

Minimum qualification creates fragile teams. Encourage leaders to develop multiple emerging producers to protect volume and income stability.

A compensation plan only performs when behavior aligns with it. Companies that clearly define how to work the plan see stronger duplication and steadier growth.

About Dan Jensen Consulting

Dan Jensen provides compensation plan consulting for new startup companies as well as established companies needing to change their plan. For new startup companies, Dan has a comprehensive fixed-fee package of services designed to maximize the success of the new venture. He follows proven design principles and creates a custom designed compensation plan unique to their business situation. Dan also works with established companies needing to change their compensation plan to improve sales and recruiting. Dan's clients will all provide excellent references.

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