Agents and distributors - Recruitment map
Agents and distributors recruitment is a very simple mechanism. The exact number of agents available in the next period depends on:
- Number of agents employed in the previous period;
- Euro exchange rate (only for distributors).
Using information about available agents in the next period from several reports, you can build a map. Map will graphically show you zones and distribution of available agents based on the above factors.
You can see a part of such map with colored zones of available agents where commission is 9%. Horizontal - reward dependence. Vertical - recruitment dependence (number of employed agents).
Example, we need to know how many agents to recruit if we need 6 agents in the next period with commission 9% and reward 10. Horizontal line - reward 10, descends vertically to the intersection with the cell, where it will be 6 and look for the intersection with the vertical line - recruitment 8. That is it, if commission 9%, reward 10, recruitment 8, we will every time get 6 agents.
Step by step, map is built for the commission 8%, 7%, 6%, etc. On the map you will see boundaries of the recruitment zones and number of agents. This way you can compare the various options for hiring required number of agents and find optimal values in order to save costs (minimums).
For distributors, there is an additional factor - euro exchange rate. The higher it is, the better the conditions for recruitment and the more distributors will be hired. Turning point (boundry) for this factor is euro exchange rate >= 1.25, rate > 0.67 and < 1.25, rate < 0.67. For each of the cases you need to build a separate map, because zones shift +/- 1 distributor.
Hint - agents minimums (reward and recruitment) are the same for commission ranges 3-5%, 6-8%, 9-11%. That is why more profitable to play at the lower boundary of range with commission 3%, 6% and 9%. If commission is less than the lower boundary range by 1% (5%, 8%, 11%), you will need to increase reward or recruit more agents to get the same number of available agents in the next period, so it will be more expensive.