Paying Daily Could Become Your Best Retention Strategy

Career Builder

Career Builder conducted a survey back in 2017 that confirmed that 78 percent of U.S. workers live paycheck to paycheck to make ends meet. In that same survey, it stated that Nearly 3 in 4 workers say they are in debt today, and more than half think they will always be. This shows why alternative income gig economy opportunities like Uber and Lyft have been so successful the past few years. This statistic should also sound the alarm bells for direct selling executives about revisiting how fast they are paying their distributors, given this increasing reality that more and more people are needing money yesterday, not having to wait for the typical 30 day pay cycle.

For years, the term “Quick Start” has been synonymous with that new distributor’s first crucial 30 days in the business. And everyone who has been in this channel for some time understands the sooner you can get a check into the hands of that new distributor, it not only helps skyrocket their belief level, it increases the likelihood they will stick with building their business.


“We found there were a fairly large group of people building a Nu Skin business because they needed income today, not six weeks, or even a week from now.” – Ryan Napierski, Nu Skin President


The problem is you don’t have 30 days anymore. You have a few days, a few weeks at most in today’s opportunity economy before your new distributors could decide to leave for greener, quicker paying pastures. A few direct selling companies have been out in front of this growing trend and have implemented instant payment features into their compensation programs.

Nu Skin’s Velocity Pay Plan

Speed and flexibility was the impetus behind Nu Skin’s Velocity pay plan which they released in late 2017. The company says it gives distributors the ability to build their new business at their own speed, where they can earn retail sharing bonuses daily when someone buys a product via their mobile app.

Nu Skin President Ryan Napierski calls Velocity the companies third major compensation innovation in the company’s history. “When we started segmenting our sales force a few years ago, we  had three different customer segments on the sales leader side,” he says. “And when we looked at the desires and the needs of those individuals, we found there were a fairly large group of people building a Nu Skin business because they needed income today, not six weeks, or even a week from now. Velocity is all about expanding the funnel of entrepreneurs that our business model can attract. And in the new gig economy, we need a more flexible business model and Velocity gives us that.”

Perfectly Posh’s Pamper and Paid Program

When I spoke with Perfectly Posh Founder and CEO Jan Dalton last summer I asked during our Q&A what was some of the feedback their consultants were giving her, about what they would like to see going forward as a company. She said they spent the better part of 2018 listening and evaluating how to improve the Consultant experience, specifically as it related to receiving, managing and tracking commission payments. This spawned their Pamper and Paid Instant Commissions program that began on August 1, 2018.


“Someone could host a party in the morning, get paid and go shopping or out with their friends that same afternoon. It really gives our Consultants tons of freedom and flexibility.” –Ann Dalton, Perfectly Posh Founder & CEO


“Someone could host a party in the morning, get paid and go shopping or out with their friends that same afternoon. It really gives our Consultants tons of freedom and flexibility,” Dalton said in their press release.

Pamper and Paid Instant Commissions is part of a larger improvement to how Perfectly Posh says their Independent Consultants get paid. There is also a new payment portal called Posh Pay that provides improved visibility and accessibility to Consultants, a lower cost, including no-cost transfer options, better customer support experiences and faster payment delivery. The company says the improvements has helped Perfectly Posh Consultants manage and grow their business with much more efficiency.

“Our introduction of Pamper and Paid Instant Commission is a game changer.,” said Sam Funk, president of Perfectly Posh. We want to pay them as fast as possible for their hard work and now we can. They can share the Posh products they love and shortly after doing so get paid.”

Younique: Making Brand Connections with Instant Rewards

2014 was a magical year for Younique after they stumbled on to a fiber lash product. Yes, the product was great but it was only one part of what Younique CEO Derek Mayfield said was a significant driver to their explosive growth that year. At the time he thought it be fascinating to see what would happen if they paid the retail commissions instantly after a product was sold. “In most party plan companies if the sale happens on the fifth day of the month, you hold on to the retail commission until the 10th of the following month,” he says. “That’s good for cash flow and or a whole lot of reasons, right? But I didn’t want to focus on that. What we learned is when you can reward a woman instantly after they sell a product, even if it’s an $8 commission that she can then go and buy something with the same day you have just created an emotional connection with your brand.”

Waiting 30 plus days to pay your distributors seems may make your CFO happy, but paying same day could be your best retention plan to keeping your distributors happy and engaged. You’re not only filling an immediate need of getting new distributors the money they need now, but like in Younique’s case, you could be creating hope and a possible lasting connection to your brand for years to come.


Living Paycheck to Paycheck is a Way of Life for Majority of U.S. Workers

–2017CareerBuilder Survey

Study Highlights:

– 78 percent of U.S. workers live paycheck to paycheck to make ends meet

– Nearly one in 10 workers making $100,000+ live paycheck to paycheck

– More than 1 in 4 workers do not set aside any savings each month

– Nearly 3 in 4 workers say they are in debt today – more than half think they will always be

– More than half of minimum wage workers say they have to work more than one job to make ends meet

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