MLM Compensation Plans
Binary Compensation Plan
MLM Binary plan is one of the most popular on the industry and widely accepted on the world. In Binary compensation plan every member is allowed to sponsor only two front-line members. If a member sponsors more than two members, the excess are placed at levels below the sponsoring members front-line (downline).
Forced Matrix Plan ( M x N )
MLM Matrix Plan also known as ladder Plan or Forced Matrix Plan in Multi-level marketing companies which is similar to pyramid. Members which are organized in a particular width and depth are compensated when they achieve a set level. The MLM Company can set structure for members to qualify a particular level that may be 3 in width and 5 in depth. In other words a distributor only can introduce 3 as his front-line and a member can earn compensation up to 5th level.
Uni-level Plan permits the affiliates to introduce new comers in its front line. There is no restriction for width i.e. a members can sponsor unlimited in width under his/her front line and compensation distributed up to the limited depth. Further all front line also efforts to do the same for earn bonuses or compensation. To become more attractive Uni level Plan, MLM Company can introduce some rewards or incentives whenever a member introduced a set number of front line.
Linear or Straight line Compensation Plan
Linear or Straight line compensation plans are structured as a downward thread of distributors, one under the other, growing continually as new distributors join. “Get in now and everyone from hear, to around the world, will be in YOUR downline! This angle on the structure and the pitch tends to drive recruitment and growth. Most common, would be the display of Linear/Straight line genealogy, with coded bonuses, rank based infinity overrides, personally sponsored matching bonuses and global bonus pool distribution methods.
Australian X-up Compensation Plan
Australian X-Up Plan is an improved / modified version of the Unilevel. The Australian One-up, Two-Up, or Three-Up, or X-Up or any distinction of ups.
Cycle Matrix is the combination for Forced Matrix with performance. The user enters to first matrix will need to perform & complete his matrix & move up to next cycle.
Party MLM plan is a type of MLM plan that promote or market the products through the social events like the home based party. In the social events, the products are displayed in the sale. On the other words, this is a direct selling method. Besides, here the host can also offer the guests the scope to host some other business party. This plan concentrates both on the multi-level marketing and single-level marketing – More about Party Plan
Stairstep breakaway plan
This type of multi-level marketing compensation plan is characterized by having representatives who are responsible for both personal and group sales volumes. Volume is created by recruiting and by retailing product. Various discounts or rebates may be paid to group leaders and a group leader can be any representative with one or more downline recruits. Once predefined personal and/or group volumes are achieved, a representative moves up a step. This continues until the representative “breaks away” from their upline.
Board Matrix Compensation Plan
Board Plan is one of popular amongst different MLM plans which is also known as Revolving Matrix Plan.MLM Board Plan is called because a group of members works in a team (Board) and whenever a board consists a set number of members, the Board splits into two sub-trees. The top one member promoted into next higher board. In MLM terminology the company can set how much promotional board to be introduced and how many members can be in a Board.