An integral part of analyzing the success of the Multi level marketing
campaign is to measure the performance of the multi level
marketing team. You need to identify the key
performance indicators that have remarkable impact on your firm’s
profitability. These key indicators are basically control points that
help you to monitor the progress of your multilevel marketing team
and its effects on your business. Due to very complex nature of the
network marketing scenario and usually complicated compensation
plans, few companies sometimes ignore to evaluate the
performance of its team and its overall impact on the business. But
is it right or a big blunder? Only an insane would say its right.
Multi level team performance has a vital impact on your
business and it is crucial to assess the performance as it will assist
you in formulating your future business strategies and multi level
marketing business plan. Investing more in the areas which are
promising and reducing efforts where there is not much potential.
But the question is how do you measure team performance? How
can it provide you with helpful data for planning future business
strategy? What are the key indicators of performance?
In order to evaluate performance it is essential to identify the key
MLM Success Guide 39
performance indicators. For example identify whether your team
achieved the targets given to them, the number of sales made by your
team, number of key recruits you get, conducting a cost and benefit
analysis, number of repeat sales or repeat customers, increase in
sales, satisfaction level of your team, satisfaction level of your
customers etc. Once you do that you can utilize these results to
develop future business policies. Hence measuring key performance
indicators is a well recognized process practiced by almost all large
companies to use it as a basis to formulate future strategies.
One of the other important points to consider is to evaluate your
business targets. Some companies set unrealistic targets that are
highly difficult to achieve. In order to evaluate the actual perfor-mance
it is also essential to evaluate your compensation plan. For example if
there is very low distributor retention than instead of penalizing your
team you need to reevaluate your commission plan and identify why
your team is unable to produce effective results. Also account for
forces that are not in control of your marketers for example an
economic down turn, demand short fall etc. Hence in order to ensure
longevity MLM companies must constantly evaluate their team
performance and took measures to correct any loop holes.
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