Hello friends,
A noteworthy trend has emerged in direct selling compensation plan design over the past year. Announcements from industry leaders over the past several months signal an important shift in how companies are approaching distributor compensation—moving from complex, legacy structures to streamlined, performance-driven models that reflect the realities of today’s marketplace.
The most striking example comes from The Avon Company, which announced a complete overhaul of its commission structure effective Jan. 1, 2025. The company transitioned from a fixed commission structure tied to annual sales volume to a variable structure based on two-week selling cycles that allow Ambassadors to earn up to 50% commission per campaign. This shift to five straightforward commission tiers represents a departure from traditional models, focusing on immediate performance rewards.
Similarly impressive is LifeVantage’s continuous enhancement of its Evolve Compensation Plan. After launching Evolve in March 2023, the company announced updates in October 2024 that introduced a “Sharing Bonus” allowing consultants to earn 10% commission for sharing products, with 20% potential when reaching milestone ranks. The company’s commitment to “continuously simplify and enhance the way consultants earn money” exemplifies the channel’s new philosophy of iterative improvement.
DoTERRA’s recent compensation plan elevation demonstrates another facet of this evolution—the recognition that modern distributors want clearer paths to success and more immediate rewards. The company’s enhancements include faster pathways to earning, streamlined bonuses with fewer qualification barriers and flexible rank advancement opportunities. These changes represent fundamental shifts in how compensation works in today’s direct selling environment.
What strikes me about this transformation is how it reflects a growing understanding of what today’s distributors actually want. Recent research by Heather Chastain, founder and CEO of Bridgehead Collective, reveals that a decreasing number of direct sellers have interest in building teams or moving up in traditional rank structures. This finding stands in stark contrast to typical compensation plans that focus heavily on team volume and only reward those at the highest leadership levels with certain titles and recognition.
The new compensation philosophy embraces a “pay for performance” approach—rewarding engaged leaders more while reducing payments to disengaged participants. Companies are also responding to the rise of the gig economy mentality. Today’s distributors often prefer immediate rewards over complex, long-term accumulation systems. They want clarity about how their efforts translate to earnings, and they expect to be rewarded for selling products in addition to building teams.
Perhaps most encouraging is that these new compensation structures are being designed with simplicity as a core principle. Companies are acknowledging that complexity is the enemy of execution and that the typical direct selling entrepreneur needs clear, understandable paths to success.
The companies making these bold moves aren’t acting out of desperation—they’re proactively positioning themselves for sustainable growth, and this is an exciting development. These compensation plan innovations represent a maturation of direct selling that balances distributor opportunity with business sustainability while maintaining the personal touch that has always defined our channel.
My team and I thank you for reading SSN, and we wish you and your families a safe and adventurous summer!
Warmly,
David Bland
