How Leadership Development Bonus Impact Direct Sales Business?

The direct sales companies incorporate leadership development bonus an advanced strategy to enhance the leadership skills of their distributors. Earlier, the direct sales companies used volume-based targets to measure progress of their distributors whereas now they are using  impact-driven leadership bonus where the leaders in the business are rewarded based on their influence and impact they have made.  Companies using leadership development bonus structure has velocity component feature where the leaders are given incentives when they reach certain ranks during a specific period of time. This will help the leaders to increase their leadership growth and fast leadership progression. Direct sales companies often fail to look the potential of their developed leaders. This term is called as echo effect leadership. To solve this the companies, introduce changes in their compensation plans where the new system rewards the leaders within four or five generation levels rather than the previous two or three levels.