 1963 ◦ Start-up Capital: $5,000; ◦ Employees: 10  2011 ◦ Net Sales: $2.9 billion; ◦ Salespeople: 2.4 million; ◦ Employees: 5,000  Ave Salespeople Turnover Rate: 68.6%

 Sales ◦ Wholesale Value ◦ Number of active recruits

 Communications ◦ Written Material ◦ Telephone Hot Line ◦ Regular Solicitation of Feedback

 Recognition and Prizes ◦ “ A $5 ribbon plus $20 worth of recognition is worth more than a $25 prize. ”

 Events: ◦ 3-day Annual Seminar ◦ Contest ◦ Conference

 Incentives ◦ Financial  Retail Mark-up  Commission  Bonus ◦ Nonfinancial  Ribbons; pin; blazers  “Special” buttons; pins; blouse, etc.  Pink Buick or Cadillac; Annual Summit Meeting, etc.

 Two Stages: ◦ Initial Qualification ◦ Maintenance  Three Targets to Meet: ◦ Team monthly wholesale value ◦ Personal monthly wholesale value ◦ Number of active recruits

 Lack of Incentives for Sustainable Improvement  High Cost

 Company’s Solution: ◦ Increase in Requirements for VIP Qualification  Consequence  More Rush-intos and Less Competent Directors;  Disappointed Sales Force

 Recognition Sometimes is more Important than Money;  Incentive System can be a Double-edged Sword;  Morale is almost Everything for Sales Force