For a direct sales business, it is important to adopt latest strategies and trends to enhance their distributor loyalty and engagement. Pool bonus systems are important in as they help to maintain network stability. pool bonuses in a direct sales business majorly focus on their working mechanisms. They are not only the rewards, they create a psychological impact on distributor behaviour. Apart from traditional conventional bonuses, pool bonus works differently because they engage motivational channels with longer duration. The effect of this pool bonus shows that the distributors begin to be concerned about the entire direct sales organization's success instead of being concerned only about their immediate sales groups.
Direct sales companies adopting this pool bonus system has a distributor loyalty rate of 47% greater than the traditional compensation schemes. The psychological variables of increased distributor retention include aspirational anchoring, community reinforcement, and progressive mastery.
