Prepaid Employee Compensation: What MLM Companies Should be Doing
Multi-level marketing companies have been growing in popularity over recent years. Their business model motivates employees to both sell and grow the company through employee recruitment. This strategy allows for employees to receive commission on both their own sales and sales of their team members.
As a result, one important aspect of multi-level marketing companies is the compensation process. For employees, there are multiple forms of revenue that come from bringing in sales or expanding the sales team. For employers, a non-standardized salary makes managing employee’s income very important. Unfortunately, many companies spend too little time analyzing this part of their business. This results in money lost for the employer and employee because of inefficient use of time and labour.
Prepaid Cards offer significant advantages for this type of business model. Since their employee base is constantly growing, being able to distribute their compensation efficiently and timely is critical. The old method of disbursing cheques to employees for completing a sale or recruiting an employee is time consuming and riddled with fees along the way. Prepaid Cards eliminate these issues.
When using prepaid cards to deliver funds, money is deposited instantly no matter where the recipient is located. In a MLM company, the sales team can often be disbursed over a large area. Having to prepare and distribute cheques to many sales people in different locations can be expensive and timely. By using prepaid cards, this process is streamlined directly to the employee’s cards.
Another benefit to using prepaid cards for disbursement is the management capabilities. For the employer, money can be tracked throughout the disbursement process. For the cardholder, they have full management freedom of their funds once the compensation is loaded. Using an online account, money can be tracked, deposited, withdrawn and transferred instantly.
Prepaid cards can be used anywhere credit cards are accepted and have uses other than acting as a vehicle for money loading. Some prepaid cards can be attached to unique loyalty rewards tailored to that company. This means that companies can implement an incentive program for their employees and use the prepaid cards as a rewards card, in addition to a compensation card.
Key benefits of prepaid cards used for compensation:
- Branded prepaid cards can result in increased brand awareness
- Instant money transfers
- Full management and reporting capabilities for the employer and employee
- Flexibility of use for cardholder and employer
- Easy to use