Different Types of Network Marketing Plans | Types of MLM Plans

mlm plan
mlm plan

MLM Business individuals and Companies work on various MLM Plans and concepts to sell their services and products through the various customers and affiliates joined their business network.

Various kinds of MLM plan concepts introduced in the MLM business industry, some of MLM Business Plans are listed below:

1. MLM Donation Plan/ Help Plan/ Gift Plan

The MLM Gift Plan in MLM industry also known as donation plan or help plan which is widely accepted by various MLM companies at International level. The networkers and MLM leaders who joined help plan and of course the company who managing all the transactions earning huge profit in a short period.

Generally, the MLM Help Plan or MLM Gift Plan is concept based on giving and take the concept in which a networker who provide a single help to a networker and get multiple help from others. The MLM Help Plan in India declared illegal and known as money laundering but some countries allow such MLM Donation Plan or MLM Gift Plan.

2. MLM Uni-Level Plan

This MLM Uni-Level Plan is one of the simplest concepts in the MLM industry. Every individual or company can easily convey and explain this Unilevel Plan to newcomers and MLM Business affiliates

In Uni-Level MLM plan each affiliate can recruit newcomers in the front line. Each affiliate can introduce newcomers in any width and the commission distributed up to a fixed limited depth as per the MLM compensation plan.

The MLM Company can become the Uni-Level Plan more attractive by introducing some rewards, bonuses, incentives on a particular level achievement or a fixed number of the frontline.

Advantages of MLM Uni-Level Plan

  • The simplicity of MLM Uni-Level Plan through which easy to explain for newcomers.
  • Compensation level customized as per company requirements.
  • Reward and bonuses integration easy at any level or frontline.

3. MLM Binary Plan

The MLM Binary plan is the most popular MLM plan among the MLM companies, MLM business individuals, part-timers, network marketers and all other members who want to start their MLM business. The concept of Binary MLM plan is based on two legs network growth whereas one on the left side and another on the right side.

When one person joins the network, he/she introduce new joiners either on left or right side in the Binary Tree Structure, where one side is referred to power leg and another side is profit leg.

Power leg in MLM Binary Plan grows even when the member previously enrolled in the tree recruits the new members and added into the tree on the leaf position in the tree where the profit leg increased when a member introduce for self-benefit. Some other criteria also matched for binary compensation distribution like 1:1 and 1:2 or 2:1 concept.

The binary capping concept also integrated into the MLM software so that the access payments for the members can be stopped.

Advantages of Binary MLM Plan

  • When a new member joins the network, all upline get benefitted by binary points.
  • A member’s upline recruits new members under the downline, the process is called spillover and the new member placed into the leaf position into the binary tree through which downlines power leg increases.
  • You just need to concentrate on the profit leg to get benefits in the binary plan.
  • The Binary MLM Plan is a team efforts business where up-line sales give the benefits to their downline.

4. MLM Board Plan

The one of most popular International MLM Plan in MLM industry is MLM Board Plan which is also known as Revolving Matrix Plan. In MLM Board Pan a group of affiliates works in a team called Board. Fixed number of affiliates joined a particular board, the specific board splits into two sub-boards (sub-trees) and the top affiliate gets some incentive and promoted into next higher board.

The MLM Company can set how many numbers of members/ affiliates contained into aboard as well as Company can become the number of boards to be promoted as per their compensation plan.

Features of MLM Board Plan

  • Integration of Unlimited Board Income.
  • Auto-splitting of boards.
  • Recycling entry system into the board
    Cross matrix.
  • Auto promotion to the higher board.
  • Qualified board list report.
  • Find affiliates board.

5. MLM Matrix Plan

In multi-level marketing business, there is a well known International MLM plan, Matrix Plan which is also known as Forced Matrix MLM Plan or Ladder Plan. The MLM tree organized in a pyramid pattern in fixed width and depth. The member who joins into the matrix plan gets compensated when they recruit new members according to the level set by the MLM plan.

The MLM Company can set the tree structure that may be 3 in width and 5 in depth i.e. each member can recruit 3 new members in their width front line and get benefited up to the 5 levels. In matrix MLM plan the width is limited so the upline needs to motivate their downline to get benefited and the network grows drastically. The MLM Company can set their level bonus structure according to their MLM business compensation plan to motivate or attract customers for the sale of products and increase network structure.

Advantages of Matrix MLM Plan

  • Customized Matrix MLM Plan in which your compensation plan can be integrated.
  • When downline works upline gets benefited according to their levels, so the upline always motivate their downline to grow their network.
  • MLM Matrix plan is easy to understand and explain the concept of MLM Plans. Therefore, MLM company representatives and networkers easily motivate their downline.
  • The MLM Matrix Plan is flexible through which MLM Company can extend their Matrix tree width according to their compensation plan.

6. MLM Generation Plan

The pure product selling MLM plan is Generation plan. Generation plan knows as more name just like Repurchase Plan, Gap Commission Plans. It is a product selling motivational MLM plan in which each affiliate promoter their downline to the sale of products and gets incentives and bonuses on particular target achievement.

The MLM Generation Plan especially for those Companies which are the manufacturer of consumable products. In the present competitive market, a manufacturer needs to give ads in advertising media like new papers, TV etc. to increase their product selling. The Generation MLM plan is a concept in which there is no need to expand on such media because all we know the MLM is based on a group of affiliates/ members and mouth advertising.

7. MLM Stair Step Plan

There are various kinds of MLM business plans running in the market among them one concept of MLM plan is Stair-Step Plan. The Stair-Step MLM business plan is based on the sales volume of the individual as well as the sales volume of the group. In other words, the MLM Stair-Step Plan individual is responsible for both sales volumes.

In MLM Stair-Step Plan, MLM Company sets the targets not only for the individual affiliates but also for the group of downline upon which the commission is to be distributed and whenever an affiliate achieves the particular target of sales, he/ she will be promoted for next higher level by giving bonuses and incentives of achieved levels.

An MLM company can set some designation for the affiliates sales targets. We can understand by the following examples:

Designation Sales Target
Field Officer 15%
Executive 25%
Region Officer 35%
Division Manager 50%

In MLM Stair-Step Plan the team sales volumes counted into the upline sales and whenever the particular affiliate achieves their targets according to their Designation, he/ she promoted for next higher designation and rewarded with the set incentives and bonuses.

What Type of Compensation Plan is Best for You ?

I wouldn’t suggest to anyone that they choose their company based on the compensation plan alone.  It may come into consideration, but there are far more important things to consider when picking a network marketing company, including:

  1. Company owners, their history and their ability to lead.   Do the owners know what they are doing and have a clue how to run a network marketing business?
  2. Viability and marketability of the product or service being offered.  Is there an existing demand for what is being sold?
  3. Timing.  While timing is important, you can very easily get into a well-established company and still make money with them.
  4. Upline Leadership. Is the leadership that you are partnering with active, engaged and involved?
  5. Marketing Tools and Systems.  Does the company or group that you are in have tools, resources and systems that make presenting and building easier to follow?
  6. The Culture.  Does it fit me?  Or…would I stick out like a sore thumb in this group.
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