MLM Plans

MLM Compensation Plans

You may often hear about MLM Plans if you
are in the multi level marketing field. So what
is a mlm compensation plan?

A compensation plan is a set of rules that
determines how distributors earn commissions,
overrides, bonuses, and other compensation.

Types
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Binary MLM Plan
Unilevel Plan
Stairstep Breakaway Plan
Forced Matrix Plan

Binary MLM Plan
In a binary plan, you have two legs. One on
your left, and one on your right. You are
building only two legs with a binary
compensation plan.

Unilevel Plan
This type of plan enables the distributor to also
personally sponsor as many people on their
front line as they wish, enabling them to create
more width in their organization. Most unilevel
plans pay a fixed percentage of commissions on
each level and limit the amount of depth in
which commissions can be earned.

Stairstep Breakaway Plan
This plan is also referred to as the "breakaway" plan.
In this plan, when a distributor in your downline
who has achieved a predefined amount of personal
and group volume, they will rank advance, and
consequently “break away" from your group.

Matrix Plan
This compensation plan limits you by width
and by depth. For example, in a 3-by-9 matrix,
each level down to nine can only have three
distributors.

Each MLM Plan has its own advantages
and limitations. So its must for anyone
who gets into multi level marketing field
should know about mlm plans and
choose the best mlm plans