With Dozens of Companies getting into selling their products through network marketing, MLM is getting popular Day by Day. 

Network Marketing is a planned structure to sell commodities, goods, or services through a chain of sales agents who are managed using advanced MLM Software

The agents will receive earnings from both direct sales and also through the sales that are being made by their downline agents. 

For anyone interested in knowing about the MLM method of Marketing to use in their business, understanding the essentials of the business is a must. MLM Plans are the most important part of Direct selling therefore it is important to know about it in detail.

Binary MLM compensation plan

Binary MLM Compensation plan is the most popular among all the network marketing plans. Binary MLM Plan is a two legged structure contains two legs/subtrees under every distributor. 

Every member has two legs and can recruit two persons in his down-line. Every new member that comes after is spilled over to the next business level. 

Binary MLM Plan is simple and easy to understand which helps to attract more people to the Plan. It is also the MLM Plan which generates the highest return.

Unilevel MLM Compensation plan

Unilevel compensation plan consist of a single level plan which can have unlimited members in its frontline which ensures that the distributor gets maximum benefit for their efforts.  

Members of unilevel plan has the eligibility  to recruit as many people as they wants] in his or her respective down-line. Unilevel MLM plan consist of a tree of distributors in a single business level and every member is placed directly on the first level.

Matrix MLM compensation plan

Matrix business plan is also known as a forced matrix or ladder MLM Plan. Matrix MLM compensation plan balance self-growth as well as support team growth. It has Fixed Width and Depth where as one level is filled, the following members are added to the next level as spillover.

 Matrix Plan allows deeper levels to enable more compensation possibilities to the distributors. Forced matrix plans are usually in 2×2, 4 x 7, 5 x 7, 3×3 matrix, 3×5 matrix, 3×9 matrix, 4×7 matrix etc.

Stairstep MLM compensation plan

MLM Stairstep plan is one of the classical compensation plans still being used around the world in MLM business. Stairstep plan is also known as Breakaway Plan. The breakaway plan is an advanced plan with visible growth opportunities from one step to another. 

The Distributors follow a rank hierarchy in a step model to reach higher points and complete the step. Due to the Stair like model Compensations are easy to determine based on these ranks.

Board compensation plan

Board compensation plan is highly popular in MLM business. A member will be in the board plan once they meet certain criteria provided by the MLM company. An MLM business might consist of different boards based on different criterias set by the company. 

A board plan has a hybrid option which can be combined with other compensation plans like matrix, binary etc.

One reason MLM has become extremely popular in the world is because the chances of incomes are very high because an organization doesn’t need to invest money in advertisement or in any other traditional ways of marketing.

 Every Multilevel Marketing company has its unique and separate compensation plan for their business to compensate the members. The two ways to earn income is one is earned from the commissions of sales made by the members directly from  their own customers. 

The other way is from commissions primarily from the wholesale purchases made by other down-line members of MLM. Minimum investment with enough hard work can help to achieve tremendous success in Multilevel Marketing Business. If you don’t want to spend much time doing the calculations, better use an MLM software that can do the heavy lifting for you. But always try the free MLM software demo before choosing the software.

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