Direct selling organizations compensate their workforce through bonuses, commissions, and incentives. While all seem the same with each providing monetary benefits. It is important to understand that they are different in their nature and application. The following will explore these differences and how it impacts a distributor's experience as well as the company's bottom line. Bonus are given for individual performance. Companies provide distributor bonuses after they achieve a particular threshold. This will motivate distributors to engage and perform better. There are different types of bonuses such as spot bonus, profit sharing, non-cash bonus, referral bonus, milestone bonus, longevity bonus. Commissions are related to sales. It is a percentage for the sales given for a distributor for selling the company product. Commissions is cosidered to be an important factor for boosting sales. Advantages of offering commissions include creating unlimited earning potential for salesforce, increases sales conversions, acknowledges hard work, attracting the best sales talents, flexible earning opportunities, etc. There are different types of commissions such as sales commissions, base salary plus commission, gross margin commission, residual commission, revenue commission. Incentives are given for the distributors spontaneously by the company for their outstanding performance. Incentives can be of any forms such as discounts, offers, coupons, goodies, or rewards. Incentives plays an important role in increasing the distributor engagement. There are different types of incentives such as loyalty points, fun gifts, omnichannel incentives, rank or tier-based incentives, referral incentives, awards and recognition, pre-sales incentives.

1. Importance of each terms in direct sales business
Bonus, Commissions
and Incentives in
Direct Sales
https://www.epixelmlmsoftware.com/

2. Introduction
➢ For a direct sales business, it is important to appreciate a
distributors efforts.
➢ Direct sales companies can appreciate their distributor efforts
by compensating them in the form of bonuses, commissions,
and incentives.
➢ At first, these seems to be similar but each has its own benefits
for satisfying the distributors.

3. Incentives
Commissions
Bonus

4. BONUS

5. ➢ Bonus are given for distributors for their individual
performance.
➢ Direct sales companies can reward their distributors after they
reach a particular growth threshold which has been set by the
company.
➢ Providing bonus help direct sales distributors to engage more
and also helps in increasing their productivity.

6. Types of bonuses
Profit
sharing
Spot
bonus
Non-cash
bonus
Referral
bonus
Milestone
bonus
Longevity
bonus
Bonus

7. COMMISSIONS

8. ➢ Commissions are provided for the distributors for the sales
they have made.
➢ Direct sales companies can provide a percentage of
commissions to the distributors for the product they have sold.
➢ These sales centric commissions help direct sales companies to
boost their distributor productivity.

9. Types of commissions
Sales commissions
Base salary plus
commission
Residual commission
Revenue commission
Gross margin commission

10. INCENTIVES

11. ➢ Incentives are a kind of extra reward given for the distributors
spontaneously by the company.
➢ Incentives can be in any forms such as discounts, offers,
coupons, goodies, or rewards.
➢ Providing incentives can boost the distributor productivity and
motivate them to perform better.

12. Pre-sales incentives
Rank or tier-based incentives
Omnichannel incentives
Awards and recognition
Referral incentives
Fun gifts
Loyalty points
Types of incentives

13. Read more about bonus, commissions and incentives:
www.epixelmlmsoftware.com/blog/bonus-commission-incentive

14. THANK YOU