The Binary Plan is a simple and popular compensation plan used in MLM. It is a two-legged structure that promotes teamwork and offers attractive rewards while encouraging company and distributor growth. This plan is widely used because of its simplicity. Most MLM companies opt for this simple plan with detailed planning and strategy.
Matrix MLM Plan is a compensation scheme in which members are arranged in a fixed number of rows and columns. Since the width is restricted, companies can recruit more distributors in the downline and maintain a fixed set of primary members. The plan is equally beneficial for part-timers and those who pursue network marketing full-time.
The Unilevel Plan has only one business level, and all the downlines of a distributor are positioned directly in that level. There is no concept of spillover and the recruiting efforts of a distributor are directly profitable for them. Companies use this plan because of its flexibility, earning potential, and simplicity.
The Board Plan is a compensation structure suited for a network of limited members. As the name implies, a board is the highlight of this plan. 2×2 board plans are commonly used, in which each member has to recruit two other people to the network. There are many variations for the board plan including the single, multi, shuffling, auto-filling, etc.
Monoline Plan has a simple business model that anyone can easily understand. This compensation structure is also known as single leg MLM Plan or Linear MLM Plan. You will receive monthly income which overrides all the members underneath you, even those you did not recruit. It is the best way for new companies to introduce themselves to the market.
Party Plan MLM is one of the most common, profitable, and easily recognizable compensation structures used today. Distributors promote the plan by arranging social gatherings in which products will be displayed and demonstrated. Cosmetics and kitchen utilities are the most common products sold using this plan.
The Generation MLM Plan's functionality is based on profit sharing. It is also called Gap Commission Plan, or Repurchase Plan. The plan is often considered to be a powerful compensation scheme that can pay up to many levels deep. Your results and income will be very much dependent on the performance of your downlines.
In the Gift Plan, members send gifts or donations to someone and stand the chance to receive gifts from multiple members of the network. As the plan is based on a "give and take" concept, it is also called a Donation Plan or Helping Plan. This plan is commonly implemented in crowdfunding initiatives and donation endeavors.
In the Stair Step Plan, a distributor and their team breakaway after they reach the top rank. This breakaway team is then placed as a new tree or leg directly below the admin. This team then functions as a new group beneath the admin. Members can develop larger teams and accumulate commissions from deeper downline levels.
The Australian X-Up Plan is a variation of the popular Unilevel MLM Plan. Members of the network have to pass up their first X sales to their upline. After passing up the first X sales, members can gain their earnings from their upcoming sales. The plan can be infinitely deep and can pay large amounts of commissions on product sales.
The Hybrid MLM Plan combines the best parts of multiple MLM compensation structures. The most popular combination is a hybrid of Unilevel and Binary plans. These plans can be customized according to the requirements of the company. Hybrid plans eliminate the weaknesses of the plans and highlight the positives.
The Australian Binary Plan is a variation of the tri-binary MLM plan. Members have the option to choose options to sponsor more than two direct downlines. They can also develop additional parallel legs apart from the conventional left and right legs. Commissions can be generated comparatively quickly in this plan.
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