---
title: "“Tiered Pay, Delegated Authority, Shared Profits”: A Distributor Who Understands Management Achieves 60% Growth in 4 Years, with Annual Sales of 150 Million"
description: "In the face of fragmented channels and increasingly discerning consumers, many distributors find traditional methods ineffective. However, Luo Jun, general manager of Chongqing Kelixue Trading, has achieved sustained growth by integrating resources, implementing differentiated compensation systems, and adopting consumer-oriented product selection, growing annual sales to 150 million yuan with a 60% growth rate."
author: "何雯"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2025-05-31"
categories: "Dealer Operations, Management & Methods"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/mT_AU5qThQGEuZuh36wrWQ"
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attribution: "New Distribution — https://xinjignxiao.com/en/articles/tiered-pay-delegated-authority-shared-profits-a-distributor-who-understa-c20bec7c/"
citation: "何雯. ““Tiered Pay, Delegated Authority, Shared Profits”: A Distributor Who Understands Management Achieves 60% Growth in 4 Years, with Annual Sales of 150 Million.” New Distribution, 2025-05-31. https://xinjignxiao.com/en/articles/tiered-pay-delegated-authority-shared-profits-a-distributor-who-understa-c20bec7c/"
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---

# “Tiered Pay, Delegated Authority, Shared Profits”: A Distributor Who Understands Management Achieves 60% Growth in 4 Years, with Annual Sales of 150 Million

> In the face of fragmented channels and increasingly discerning consumers, many distributors find traditional methods ineffective. However, Luo Jun, general manager of Chongqing Kelixue Trading, has achieved sustained growth by integrating resources, implementing differentiated compensation systems, and adopting consumer-oriented product selection, growing annual sales to 150 million yuan with a 60% growth rate.

“The current business isn't hard to do; it's that the old methods no longer work.” This is the genuine feeling of a distributor during a field visit.
In the past two years, whether in snacks, daily chemicals, or frozen foods, distributors have commonly faced similar challenges: on one hand, channel fragmentation and increasingly picky consumers; on the other hand, team management has become more difficult, and business is no longer as “smooth” as before.
Despite this, some distributors in the frontline market continue to achieve growth, such as the protagonist of today's story—Luo Jun, general manager of Chongqing Kelixue Trading, who represents several well-known brands including Yili, Mengniu, Synear, Sanquan, and Walls.
Through product selection, institutional design, and strategic planning, he has grown the business to annual sales of 150 million yuan, achieving 30% growth for two consecutive years despite industry-wide pressure, becoming a leading player in Chongqing's frozen food distribution sector.
**Resource Integration Drives Growth: Over 60% Growth Makes It a Leading Frozen Food Distributor in Chongqing**
In fact, many distributors aiming for omnichannel transformation encounter practical issues: those skilled in traditional circulation are good at covering markets but struggle to adapt to the KA system; those in modern channels understand systems but find it hard to quickly penetrate terminals.
Kelixue is precisely a combination of these two advantageous resources.
In 2019, Luo Jun entered the Chongqing market, focusing on modern trade channels, and achieved annual sales of 12 million yuan with 20 SKUs. However, he soon hit a growth bottleneck: limited product expansion, idle warehouse resources, and a lack of channel depth.
Meanwhile, his partner Qin Jiazhong had been in frozen food wholesale since 1996, starting with three freezers and a bicycle, rooted in traditional circulation channels. By 2021, his annual sales had approached 80 million yuan, but with too many SKUs, management was difficult, and the old warehouse faced relocation due to demolition.
One was familiar with modern channels, the other stable in circulation—their abilities and resources complemented each other perfectly, so they hit it off and established Kelixue Trading in March 2021, focusing on the frozen food sector.
Within just one year of cooperation, Kelixue achieved rapid growth, with annual sales rising from 90 million to 120 million yuan, then steadily increasing to over 150 million yuan, a growth rate exceeding 60%, far above the industry average. With a 9,000-square-meter professional cold storage warehouse, equipped with Zhoupu Cloud Warehouse WMS warehouse management system, and 28 refrigerated delivery vehicles, it has become a frozen food distributor rare in the regional market for balancing efficiency and scale.
What did Kelixue do right behind such growth?
**It's Not That Employees Can't Do It; It's That Compensation Doesn't Match: Kelixue Solves It with “Tiered Performance”**
What's hardest for distributors to manage is often not goods or accounts, but people.
How to manage people well and bring out combat effectiveness? Compensation and performance are unavoidable levers, yet many traditional distributors often rely on a single “compensation and performance” system, with limited results. Either the assessment indicators are too coarse to motivate people, or the system is too rigid to retain talent.
Luo Jun admitted, “If distributors want to grow, it ultimately comes down to covering the market and grabbing territory. But no matter how fast the boss runs, it's useless if employees can't keep up.” To address this, Kelixue Trading took a different approach: designing differentiated compensation incentive plans based on the different stages of sales staff.
**3.0 Model: A “Growth Version” Compensation Mechanism for Newcomers, Suitable for Junior Salespeople**
New employees' biggest problem is not understanding the rules and lacking direction. To address this, this version splits income into multiple modules, allowing employees to “have corresponding rewards at every step,” quickly building habits and a sense of purpose. It mainly includes the following:
> Basic salary: composed of base salary + KPI (visits, order rate, payment collection rate, intensive cultivation rate, brand distribution, etc.) + horse race mechanism;
>
> Monthly performance: calculated comprehensively based on three indicators: brand sales achievement rate, gross margin, and customer order rate;
>
> Additional rewards: for example, developing new customers or selling brands at high prices earns extra bonuses;
>
> Annual task rewards: as long as the team completes annual goals, there are team rewards;
>
> Long-term incentives: outstanding employees can participate in profit sharing or “financial planning plans,” such as depositing 10,000 yuan at the beginning of the year (capped) and receiving a 100% reward at year-end.
Those who do more and do well earn more; those who perform poorly or break rules are eliminated. For example, an employee “clocked in” visits to over 1,000 customers in a month, but only 5 placed orders. According to the algorithm “orders ÷ visits × 30 yuan,” the bonus was almost zero, avoiding the “just going through the motions without results” trap.
Additionally, every detail of daily work has corresponding assessments:
Visit standard: 260 visits per month is the baseline; each visit beyond that earns 20 yuan;
Payment collection ratio: if “month-end receivables ÷ monthly sales” fails to meet the target, performance is deducted to avoid selling without collecting;
Distribution and order rate: if customer order rate (ordering customers ÷ total customers) is below 5%, performance can be deducted by 90%; if brand distribution rate is not met, a fine of 200 yuan per brand is imposed;
Horse race mechanism: four key indicators (monthly visits, orders, sales achievement rate, gross margin achievement rate) are ranked uniformly; top three rewarded, bottom three fined, with rewards and penalties directly affecting monthly income.
**4.0 Model: No Base Salary, More Emphasis on Drive, Suitable for Advanced Salespeople**
When salespeople become familiar with the rules and mature, the company offers an “upgraded” incentive plan. Based on 3.0, the 4.0 version removes the base salary and adopts a tiered commission mechanism, better suited for those with strong goals and a willingness to push for results. For example, if sales of a certain brand reach the 135,000–150,000 yuan range, the commission rate is as high as 65%. “If you want to earn more, you have to fight hard.”
**5.0 Model: Delegating Authority to Senior Employees, Focusing Only on Results, Suitable for Senior Salespeople**
For mature salespeople with strong independent combat capability, Kelixue offers a simpler incentive version. The 5.0 version barely looks at process, only results: visits, orders, payment collection, and gross margin—these four core indicators determine income. Such employees don't need complex process management; they rely on results, making it more flexible.
It's worth noting that when this system was first implemented, it went through a painful period. “Out of 10 who come, 8 leave,” Luo Jun said bluntly, but he wasn't worried. “Those who leave don't fit; those who stay are the right people.”
**It's Not That Consumers Don't Want to Buy; It's That Your Product Selection and Tactics Are Wrong**
“Now is not the era of selling goods by pushing inventory or price wars.” This is a consensus among many distributors in recent years. First, consumers are increasingly concerned about ingredients and quality, reading labels and comparing ingredients; second, channels are becoming more fragmented, making traditional tactics unsustainable.
Against this backdrop, Kelixue Trading chose to work on both product selection and sales promotion, establishing a “selection–promotion” system closer to the market and consumers, carving out a differentiated growth path.
**1. From Brand-Oriented to Consumer-Oriented: Differentiated Product Selection**
Using the selection of a wonton product as an example, Luo Jun shared that at the time, he had two options: one with stronger brand power and only slightly higher price, the other with weaker brand recognition. However, after comparing ingredient lists, he found the latter had higher pork content and better quality. After a blind taste test by the team, they ultimately chose the latter as the main product, breaking the past inertia of “brand first.”
This approach also extended to ice products. Through a chance attempt, Luo Jun came across a frozen mango made solely from the fruit itself. “The simpler the ingredients, the more confident consumers feel,” Luo Jun realized. This could be a breakthrough to meet the health consumption trend, especially among families and young consumers focused on sugar control. Such natural frozen products have clear appeal.
Subsequently, he proactively contacted manufacturers to co-develop healthy frozen fruits, including bayberry, strawberry, and pineapple. Keeping ingredients minimal and healthy, preserving the natural flavor to the greatest extent, these products quickly became core movers in multiple channels after launch.
Kelixue adheres to a consumer perspective, gradually establishing a product selection system centered on “ingredients as core, blind testing as validation, and differentiation as the path.” However, selection is only the first step; whether products can move depends on how they are promoted.
**2. Promotion Must Be Grounded: The Key Is Mechanisms and Methods**
1. Establish multiple promotional plans, leveraging customers' “getting more” psychology to amplify perceived value
In promotion strategy, Luo Jun stated that relying solely on low prices is unsustainable. “Is there a way to make customers feel they've got a bargain while avoiding vicious competition?”
To this end, he established multiple promotional plans to flexibly respond to different channels and customer types. Taking “pre-deposit + gift” as an example, customers can deposit an amount to receive vouchers or gifts, such as depositing 300 yuan for a 99 yuan voucher, or depositing 70,000 yuan for 1,200 items of goods. This approach leverages the “getting more” psychology, amplifying perceived value, not only increasing customer participation but also optimizing cash flow recovery and inventory turnover.
2. Build a professional live-streaming team: expand new markets and boost online sales
In the past, distributors mostly followed or passively responded to market trends. But as regional frozen food consumption channels become increasingly diversified, Luo Jun realized that relying on one or two channels alone would be insufficient for long-term growth. Therefore, he gradually established a “land, sea, and air forces” model covering modern channels, traditional channels, online, and new retail channels, and promoted continuous product movement through deep channel cultivation.
Taking online promotion as an example, live-streaming e-commerce and instant retail have developed rapidly in recent years. To expand new markets, find new growth points, and more precisely reach young consumer groups, around the Spring Festival, Luo Jun formed a 5-person anchor team and set up 4 live-streaming rooms, focusing on promoting frozen food sales through platforms like Douyin, Xiaohongshu, and Pinduoduo, paired with instant delivery services like “hourly delivery” and “next-day delivery” to meet consumers' immediate needs.
3. Provide training for customers: deep service to enhance channel stickiness
“It's not over once we supply goods; we hope to sell products well together,” Luo Jun said. In execution, he often leads his team into stores and terminals, not only precisely placing materials but also providing training for store buyers and sales staff, conveying knowledge points such as product ingredients, differentiated advantages, and usage scenarios. “We do tastings and explain ingredients to help stores build sales logic.”
In his view, this “deep service” mechanism not only solves the sales promotion problem but also enhances channel stickiness, improves new product promotion efficiency, and is a key link in helping Kelixue continuously output product strength.
Final Thoughts
In increasing exchanges with regional distributors, we've found that there is no shortcut in this business that can be built on technical barriers. And there is no one-size-fits-all answer to “how to achieve business growth?” But those who are running ahead often share common traits:
First, they proactively seek change and constantly look for new growth points. They don't rely on experience to sell goods but start from consumers; they don't rely on inertia for distribution but dare to lay out multiple channels and step out of their comfort zone.
Second, they maintain patience and seize the window of market consolidation. Even in today's fragmented channels and price wars, some still retain customers through meticulous service, staying calm and polishing every move, waiting for the moment of market reshuffle.
For distributors to survive, they cannot just be middlemen moving goods; they must understand trends, keep up with the market, and create differentiation. This is the truly sustainable business path in today's increasingly competitive environment.


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## Citation metadata

- Publisher: New Distribution
- Author: 何雯
- Published: 2025-05-31
- Canonical: https://xinjignxiao.com/en/articles/tiered-pay-delegated-authority-shared-profits-a-distributor-who-understa-c20bec7c/
- Original source: https://mp.weixin.qq.com/s/mT_AU5qThQGEuZuh36wrWQ

## Copyright and AI use

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