The Business Model drives the Behaviour in the Field.
Louise should have met Michael Dlouhy. If she would have learned how the business model drives the behaviour in the field she would have saved herself years of failure and frustration.
The business model or more clearly defined as the compensation plan does drive the behaviour in the field. I can more clearly explain this as Louise tells me about her company which we’ll call the ABC company.
Louise had a leader on her team called Mary. Mary was away for a long weekend visit with her family and being a florist had long hours scheduled during the week to prepare for a wedding she was doing. Two of her leads contacted her on Tuesday morning to tell her they were interested in joining her team. She was pumped, excited and panicky. No time to sign them up, get them started, or do any training that week so she called Louise. “Can you sign these people up, start their training for me as I’m busy this week?” Louise, of course, says yes. Get’s off the phone and realizes that Mary will be up a pin level this week putting her on the same level as herself. That means no bonus money for Louise. OK, Louise thinks to herself, that’s OK I’m just the type of person who will help anyone, anytime, for free so let’s go do that.
Does that business model drive the right behaviour? No. There are too many times when a helping hand decreases your paycheque. That business model doesn’t drive the right behaviour in the field. Louise did it and lost out financially. Many would not. The company drives the the wrong behaviour in this scenario.
The same week, a young woman who had just joined ABC company, phoned Louise. She had 3 orders for vitamins from 3 different customers. She was excited and wanted Louise to help her place the orders, calculate the exchange, set up a wire money transfer and do a 3 way call with each customer explaining what the actual costs would be. Louise agreed knowing the young woman was not going to get paid for those three customers. Knowing the young woman was going to be devastated when she found out all her work was going to generate exactly nothing to deposit into the bank.
Does that compensation plan drive the right behaviour? No, but it does add a touch of desperation to the field representatives. That young woman would have needed 8 customers to make $20. (The first 100 points don’t count) Would that have been difficult for her to do? Louise knew it. Four customers each week would net her exactly 0.
Tough compensation plan for a new comer.
In both scenarios above Louise worked with her downline, helping them wherever she could, neglecting her own lead generation and others in her downline. Was the financial compensation going to be there for her? Did the business model of company ABC encourage or discourage these distributors? Louise, I know was discouraged. The young woman, well, apparently she quit so I’m assuming she was also discouraged.
Both these woman needed to hear Michael Dlouhy explain the concept of the business model driving the behaviour in the field before they joined any company. It was easy to show Louise why she was frustrated with her company. It was just as easy to show her what an “encouraging” compensation plan does for people.
The Business Model does drive the Behaviour in the field. I’m glad Michael Dlouhy taught me how to look at compensation plans so I could choose the company that drives a positive field behaviour.
And that has made all the difference.
To your success,
Joyce Penner
It sure drives my behavior…
Joyce,
I have to agree with you. I learned a lot also and am grateful for the education. It has enabled me to seek out the kind of business model (pay plan) that is psychologically uplifting, advances me, those I have sponsored and all of our bank accounts at the same time.
RICK