A direct selling company offers products or services to customers in person, through independent consultants called distributors. The distributor salesforce can be motivated through bonuses, commission and incentives (https://www.epixelmlmsoftware.com/blog/bonus-commission-incentive ) for their work. There are different ways by which the companies appreciate its distributors' efforts. Providing the distributors with monetary benefits are primary, retaining distributors can also be done with loyalty and rewards programs.

Bonuses are a type of incentive given to distributors or other personnel for either achieving individual goals, meeting certain targets, or even as an appreciation for their skills. Bonuses may also be tied to the performance of the team in which a distributor is involved with. There are different types of bonuses provided by a direct sales company such as sponsor bonus where a sponsor (https://www.investopedia.com/terms/s/sponsor.asp )or an existing distributor is given a percentage of profit for bringing in new distributors.

Direct selling companies, unlike most other types of business models, often have a commission model that can always stand with the distributor productiveness. Commissions are typically based on the product or service sold and this percentage can differ depending on a variety of factors as decided by the company.

Companies provide incentives to their sales force for various reasons, which include but are not limited to training courses and certifications. They also reward those who are able to get more customers than the target number set by the company or upsell products. However, what makes incentives different from commissions (https://www.investopedia.com/terms/c/commission.asp ) and bonuses is that they’re given spontaneously. The company can give an incentive just because it wants to congratulate someone for something they have done.