Performance Weighted Pool

The Performance Weighted Pool is a program structure where rewards are distributed among all collaborators based on their performance relative to each other.

The “Performance Weighted Pool” is designed to ensure all collaborators who have engaged with a customer throughout their journey receive some amount of credit, but still ensures that higher performing members of the pool get bigger cuts of the reward. Unlike structures that reward a single engagement point, this model distributes rewards among all collaborators based on their participation.

In the Performance Weighted Pool, when a customer converts, the reward is not attributed to just one collaborator. Instead, it’s divided among all the collaborators who have interacted with that customer. The amount that each collaborator earns is based on how high their score is relative to everyone else’s score.

In this model, each collaborator accumulates points or scores based on their engagements with a customer. These scores are typically determined by factors like the frequency, depth, and influence of engagements. When the customer finally makes a purchase or completes a conversion, the total reward is distributed among the collaborators. However, the share each collaborator receives is proportional to their score relative to the total points accumulated by all collaborators.

Where This Works

This program is really good for more-complex sales cycles with numerous touchpoints. If you have a large body of collaborators, who all contribute to your website directly, and you want to incentivize the overall health of the platform, this is a great payout approach.

Imagine an online software tool that relies heavily on tutorials and webinars for customer conversion. Several collaborators contribute by creating educational content, hosting webinars, and providing support through forums. A customer interacts with multiple pieces of content and attends several webinars before purchasing a subscription. In the Performance Weighted Pool, each collaborator’s reward would be calculated based on the engagement metrics they generated—views, webinar attendance, and forum interactions—weighted by their influence on the customer’s decision to subscribe.

When To Avoid This

This program is really good for more-complex sales cycles with numerous touchpoints. It doesn’t work so well with simple sales cycles. Imagine a straightforward e-commerce store that sells consumer electronics directly to customers. The store’s primary marketing strategy involves direct advertising through a few key influencers who use simple referral links to direct traffic to the store’s website.

In this scenario, the customer’s decision to purchase is often quick and influenced by the immediate appeal of the product or a specific promotion, rather than through a series of deep engagements. The product offerings are straightforward, such as gadgets or appliances, and the buying decision is largely transactional.