Having good compensation plans is always a good and attractive feature to encourage high productivity and loyalty levels in any company. When people feel they are well taken care of then they are more like to be more committed to giving their best to the business endeavor at hand.

Understanding and acknowledging that some compensation plans generally look good on paper but are in fact very different when it comes to applying it in a practical sense.

This is of course quite a common problem and has proven to be the dominant factor in turning people away from such endeavors. Therefore one should always evaluate any proposed compensation plan properly before deciding to make the commitment.

What About The Pay

The following are some of the points worth considering when researching a company’s compensation plan:

 Having good compensation plans but not very good products to promote will not create the ideal circumstance to earning the desired revenue perceived. If the product line is not up to par and the individual is not adequately convinced of its touted capabilities, the sales are not going to be made and thus the compensation plan will not be beneficial.

 Compensation plans should be designed as easy to understand tools. If the plan on paper looks complicated and unachievable then those interested in promoting the product will eventually lose interest in the business. Besides being easy to understand and absorb the compensation plan should also be easy to explain. Knowing the beneficial points but not being able to adequate explain them so that they appear lucrative is also self defeating.

 Good compensation plans will also have proven track records that are well documented to back up the claims made. Picking companies that have sound compensation plans and that have been in business for a safe amount of time is important. Some newer companies may not have had the time frame to prove themselves yet so it may be risky taking on such entities.