MLM remains one of the most popular business models out there in 2023, attracting millions of entrepreneurs looking to make a profit. Multi Level Marketing comes in different shapes of hierarchy and compensation schemes that are very different from each other.
However, choosing the right MLM compensation plan can be challenging, as there are various models to choose from, each with its own benefits and drawbacks. MLM Companies incorporate one or more of these plans by carefully analyzing their harmony with their business nature, resources, and market. Here is a quick take on the best MLM compensation plans and the top MLM Companies with the best compensation schemes.
Best MLM Plans 2023 – Trending Network Marketing Plans
The most important things to consider when stepping into the MLM business are the company and the plan you are joining. As more and more people are entering the MLM business, here we have listed out and compared the best MLM compensation plan for 2023.
Binary MLM Plan
The Binary MLM plan is one of the most popular and simplest MLM plans available today, with an attractive compensation plan and reward structure. It helps the company and distributors grow by encouraging collaboration and giving attractive rewards. The binary plan implements a two-legged structure in which recruits are placed on the left or right leg. The legs are called the power leg and profit leg. Despite its simplicity, the binary plan’s success relies heavily on the effectiveness of binary MLM software in managing and optimizing the plan’s operations.
Matrix MLM Plan
The Matrix MLM Plan arranges members in a fixed number of rows and columns. Compared to the binary MLM plan, there are no restrictions in the matrix compensation plan when adding downline members under a sponsor. However, This limits the number of downlines that can be sponsored by top-level members. As the width of the plan is limited, companies can add further members in the downline and keep a restricted circle of top-level members. The most popular versions of matrix MLM plans are 3X9, 2X12, 4X7, and 5X7 matrices.
Unilevel MLM Plan
The Unilevel MLM Plan is another simple and popular MLM plan. It is equally suited for small and large networks. The fundamental goal of this plan is to recruit plenty of members and arrange them evenly. There are no width restrictions in the Unilevel plan. Members can enlist as many new downlines as possible and create a more powerful and expansive network. The plan is easy to understand and does not require much training to master. It is a popular plan among beginners and part-timers.
Generation MLM Plan
The Generation MLM plan places primary importance on product selling. This plan is successful with MLM companies in the FMCG field because it sustains the distributor’s motivation for selling, despite their position or generation. The downlines in the generation plan are divided into different levels called generations. Payments and bonuses decrease as the generations progress.
Board MLM Plan
The Board MLM plan is a variation of the matrix MLM plan and is often termed the revolving matrix plan. Like the matrix plan, it is ideal for a network of a limited number of people. A board is the primary element of this plan, and the number of members in the plan can vary based on the board used. The 2×2 format is the most popular board plan, where each member has to recruit 2 distributors until all the board spots are filled. After a board is filled, it is split into two sub-boards, and the leading members are promoted to higher levels.
Stair Step MLM Plan
The stair-step MLM plan is one of the most reliable MLM plans and has been around for a long time. Distributors can develop a network as big as they prefer with their downlines. The stair-step plan is somewhat identical to the unilevel MLM Plan in which there are infinite front-line positions. A percentage is linked to each level as the levels get deeper. Once the team is completely developed, it will “Break Away,” and all the members will get small commissions.
Help MLM Plan / Donation MLM Plan
The help plan or Donation MLM Plan is a chance for distributors and companies to gain huge profits in a brief duration. A help plan is also known as a donation plan, gift plan, or money order plan. It is not a conventional MLM plan. The primary idea is to give a gift to one member and get gifts from several members. People choose this plan because of its simple nature and the chance to earn considerable income.
The party plan is a popular method used by Party Plan MLM companies to host network marketing events, typically by hosting a party intending to sell MLM products and recruit more distributors. This plan is very popular among families, and people keep bug networks of close friends. Party MLM Plan is a very popular and widely used plan with a network that grows faster than any other plan.
Monoline MLM Plan
The Monoline MLM plan just has a single line structure with unlimited levels. More companies use this MLM plan because of its popularity and simplicity. As it is easy to understand, it brings more connections; hence it is also known as a Fast or quick start compensation plan. Unlike other plans, Monoline provides faster growth and higher compensations of two types; referral bonuses and re-entry bonuses.
Hybrid MLM Plan
A hybrid plan is a combination of more than one MLM compensation plan. The commonly used combination is binary and unilevel MLM plans. The combinations can be customized as per the company’s requirements. Each member of this plan gets paid an unlimited number of levels. And as the members become larger, The commissions depend on the downline members. One of the benefits of utilizing a hybrid MLM plan is the ability to overcome the limitations of other plans.
Top 10 MLM Companies with Best Compensation Plans in 2023
There are a lot of MLM companies out there, and deciding which one to join is difficult. Most of them have a comprehensive compensation structure that a layman in network marketing may find difficult to comprehend. Here is a list of MLM companies with the finest compensation plans and a brief description of their compensation schemes.
- Mary Kay
- Rodan And Fields
- Forever Living
1. Mary Kay Compensation Plan
MaryKay is a privately held American network marketing organization with headquarters in Texas. Mary Kay has one of the greatest compensation packages for its distributors, with a high percentage of commission on retail sales and excellent incentives for reaching greater performance levels.
- 50% commission on retail sales.
- In addition, distributors can be eligible for overriding Commissions, bonuses, and incentives
2. DoTeRRA Compensation Plan
DoTeRRA is a well-known multilevel marketing organization that was formed in Pleasant Grove, Utah, in 2008. They have a reputation for paying a fair commission and offering substantial bonuses for retail sales.
- 25 % commission on retail sales
- Pays power bonuses monthly based on total team volume
- Attractive bonuses like the Fast start bonus
3. Rodan And Fields Compensation Plan
Rodan and Fields, sometimes known as Rodan + Fields or R & F, is a multilevel marketing company that is based on skin care products. They have a reputation for compensating their members by awarding commissions depending on different metrics.
- 33% commission on retail sales
- 16% Commission for sales with customers who will sign up for monthly product purchases from their distributors
- 10% commission on sales by distributors on their first level of downline
- Personal team Commissions – 5%
- Additional Incentives according to performance
4. Forever Living Compensation Plan
Forever Living is an MLM company founded in the United States with a large following and distributors worldwide. Its income will have reached $4 billion by 2022, and it offers a high commission rate for retail sales.
- 43 % commission on retail sales
- Exercises a ‘differential commission’ structure
- Eligible distributors can get rewarded by paid vacations, profit sharing, bonuses, and more
5. ACN Compensation Plan
North American-based ACN is a network marketing company that has huge growth potential. It has a compensation structure that includes providing both residual and overriding commissions to its members.
- Residual commission – 1% to 10% (based on customer points).
- Overriding residual commissions – ¼% to 3% depending on MLM rank.
- Easy promotions for performance within the first 30 days itself.
- Gives Fast Start Bonus or Customer acquisition bonuses.
6. Tupperware Compensation Plan
Tupperware is a well-known worldwide network marketing company with home-based product lines. Its market is particularly popular with housewives; its members get good commissions, incentives, royalties, and other perks.
- 35 % on personal sales
- Gives Royalty bonuses for downline sale
- Commission on recruitment
- Sales bonuses
Vasayo is a multilevel marketing company known for rewarding its members and distributors with various bonuses depending on various metrics and performance. It offers a variety of incentives to encourage members to recruit more individuals into the business and earn more sales.
- Customer Sales Bonus
- Production Introduction Bonus
- Team Commission
- Team Commission Matching Bonus
- Rank Advancement Bonus
- Global Leadership Bonus
- Lifestyle trips
Avon is a network marketing firm founded in the United Kingdom that distributes popular cosmetics, skincare, fragrances, and personal care products. According to recent figures, it has earned more than $9.1 billion in sales worldwide. Thanks to its large revenues, Avon MLM Company compensates its distributors well with attractive commission rates and bonuses.
- Retail Commission of 20-50% based on order size
- 1-11 % Downline Commissions
- Gives bonuses for rank advancement and performance
NeoLife is a multilevel marketing company that creates marketplaces for food and nutritional supplements. In network marketing, their compensation plans are particularly popular, with high rates of incentives and bonuses.
- Retail and club membership profits
- Sales Volume Bonus
- Leadership Development Bonus
- Network Development Bonus
10. Nu Skin Compensation Plan
Nu Skin is a fairly lucrative MLM company focusing on personal care goods and dietary supplements that are mostly based in the United States. It features good commission rates for its distributors, which can grow and fluctuate depending on the performance of each distributor. Its remuneration system is heavily reliant on CSV.
- 5-25 % retail commission
- Nu Skin has a compensation structure for downline growth called blocks which provides a 5-40 % bonus on Commission Sales
- Volume CSV
- Gives 2.6-10 % CSV of Leading bonus
Comparison of Top Network Marketing Plans
|MLM Plan||Difficulty||Popularity||Profit Sharing||Capping||Genealogy||Levels of income|
|Binary MLM plan||Very Easy||Popular||Average||Yes||2 legs||Unlimited Levels|
|Matrix MLM plan||Very Easy||Popular||High||No||Unlimited||Limited Levels|
|Unilevel MLM plan||Easy||Moderately popular||High||No||Optional||Optional Levels|
|Generation MLM plan||Intermediate||Popular||Average||No||Unlimited||Unlimited levels|
|Board MLM plan||Intermediate||Moderately popular||Average||No||Optional||Optional Levels|
|Stair Step MLM plan||Easy||Popular||High||No||2 Legs||Limited Levels|
|Help MLM plan||Easy||Popular||Average||No||Optional||Optional Levels|
|Party plan||Intermediate||Moderately Popular||Average||No||Optional||Unlimited Levels|
|Hybrid MLM Plan||Easy||Popular||High||No||Optional||Unlimited Levels|
These are the best MLM plans to consider in 2023. From easy-to-understand plans to highly-profitable ones, we’ve compared them all based on various factors such as popularity, control of profit sharing, and more. Here we have explained each plan and compared them based on difficulty, popularity, control of profit sharing, capping, geology, and income levels. Not all plans may suit everyone.
With the right mindset, determination, and a bit of luck, you could be on your way to achieving financial freedom and success in the exciting world of MLM. Now go out there and make it happen!