Does Your Company Pay the Field or Play the Field?

                                 Does your company pay the field or play the field?
                                                                       By
                                                              Terry Martin
 
Just to make sure everyone understands the terminology used here, whatever MLM or Network Marketing opportunity or opportunities you are in, they are the Company. Which makes all of us, the marketers, in the field. You can call yourself whatever you like, distributor, representative, affiliate, etc, but to the company we are the ‘field’.
 
There are basically three types of companies in MLM/Network Marketing. There are the traditional companies, and the newer generation of non start-up companies, plus the just launched start-up companies. I guess I would be remiss if I didn’t include the ‘pre-launch’ companies, which may launch later than sooner, for whatever the reason. For this discussion of companies paying the field or playing the field, pre-launches are not included. That could be another whole article about pre-launches alone.
 
The traditional and traditionally structured, those that have been around for some time and there is one I know for sure that was in existence in 1967. I was in their field, but not for long. Plus there are others, too. Some are almost ‘house hold’ known companies. They are well-established MLM companies with viable products. Surely their volumes have increased over the years, yet their compensation plans haven’t changed much over those years, except in a negative manner toward the field. If a company has expanded their growth and profit while experiencing large volume growth, why haven’t they increased the percentage to the field, you and me?
 
Generally, here is the answer to that question on increased percentage paid to the field by these traditional companies. They have increased the company assets with new office buildings, added to the debt load with luxury expenditures, i.e. aircraft, yachts, limousines, and the like. In some cases some of the players in the field have had their businesses taken from them because of policies and procedures violations. So the tradition companies have truly played the field by however you define the word ‘played’. There has been no optimization of funds for the field here, and most likely there never will be added funds for the field, ever.
 
The next generation of MLM companies is those that have been in existence for a shorter length of time then the traditional companies, and like the traditional companies many have viable products, with some sort of ‘market’ share.
 
They are successful companies with, in many cases, large numbers in the field. Many have used the old traditional company structure style to build their company with some newer twists added to the mix. Again, all too often these companies change their pay plans to meet the needs of the business, their business not the MLM business model, rather then the needs of the field. To continue to succeed these companies will have to get away from the same things that the traditional companies hold as resources that the ‘pay plan’ has to absorb. The most surreptitious of these is the use of celebrity endorsements. The only value they add is to their own egos and maybe to that of the egos of the company executives. There is no value added to the product, just a cost that has to be paid by those in the field because of the reduced revenues by the company to pay for those endorsements. There are companies that have professional sports teams, also. To be fair, I don’t know if a traditionally structured company funds them or not, but it is an MLM company name. However, I’m sure of one thing, the field is absorbing those costs and salaries for all of the team expenses and operations.
 
Most non start-up companies that have embraced the traditional MLM business model have played the field just as much if not more then the older more established companies.
 
That brings us to the newly launched start-up companies. Have any of them used the technology that is available today to help re-shape their products and companies into a new MLM business model? Is there hope for a new pattern in MLM businesses today? Where the field makes money as the company grows, the overhead is reduced or even eliminated in some instances and the field does not have to absorb the costs. Is there such a company? You tell me.
 
From where I sit and what I’ve seen most MLM companies pay the minimum amount to the field and change their policies and procedures as needed for the company benefit only. I know for a fact that there is companies that have changed their compensation plan just this year. These changes benefited the company not the field.
 
Here is the answer to the question raised by the title of this article. “Does your company pay the field or play the field?” They pay the field the minimum that they figure they can pay and keep a viable position in the MLM companies market percentage. However, most companies ‘play’ the field. 
 
Imagine yourself as a game piece on the old ‘electronic’ football game, the one that just vibrated and the pieces moved. Most of those in the field are just like those game pieces, they just vibrate and go nowhere until they fall over and are out of the game, or in this case the MLM industry. The board game still works just like the company does, you just have to add new game pieces in the vertical position and hope one moves toward the goal line and scores, just like in MLM - network marketing. After the game piece scores, it can be reset or taken out of the game, just like those in the field, the board continues to vibrate just like the company continues to function, just like MLM – network marketing. This game is from the past, just like the current structure of most MLM companies.  Games have evolved using the new technologies that have been developed since this vibrating football game was first introduced.  Too bad, we can't say the same about MLM companies and their payments to the field.
 
Folks, in most cases the field is always being ‘played’, not paid their true value by the company. However it is my belief that there are companies that will change the mold and patterns of the MLM industry in the future, and truly PAY the field. There may be some in existence today.
 
The thoughts and comments expressed above are mine and mine alone. Please comment if you feel the need. Terry Martin (Az2Step) www.AskTerryMartin.com