mlm plan

Importance of Selecting the Right MLM Plans in Direct Selling

Modern-day marketplaces are embroiled with a wide range of products, discounted prices, and sales offers. For direct sellers, penetrating these barriers and reaching straight to the customer is a challenging task. To execute this effectively MLM plans or network marketing businesses adopt direct selling software that can help them implement a strategic business plan.

In the fast-growing world of direct selling, there are numerous multi-level marketing (MLM) techniques used by companies. Some MLM plans work effectively in all types of conditions while some MLM plans are customized to fit the business requirements. Direct sellers are now approaching their business by determining the best MLM plan beforehand.

Key MLM Plans & Their Importance

With the right MLM software, direct selling businesses can select an appropriate MLM plan for implementation. In the direct selling business, there are various MLM plans and concepts put to use. Each MLM plan has its importance which is determined by the way products get sold through the business network.

Here are the top direct selling plans and their importance for MLM businesses.

 

binary plan

Binary Plan

It is one of the most popular direct selling plans in the world. In the binary plan, the MLM leader extends the downline of members in two subtrees. The left sub-tree is called the power leg while the right subtree is called the profit leg. When new members are to be introduced, the binary tree structure of 1: 1 or 2:1 is used. Based on this, a distributor adds two new distributors either on the left or the right side, making sure that both sides grow uniformly.

 

Importance:

  • With the binary plan, MLM leaders can get more payment from their downline.
  • This plan can grow infinite downlines.
  • It can also cultivate teamwork and leadership in the MLM network.

With this compensation plan, direct sellers can help their average network marketers in achieving success early on and gain recognition with financial freedom.

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matrix plan

Matrix Plan

MLM companies can use direct selling software to implement the matrix structure. It is one of the few direct selling plans to profit the joiner over the recruiter. In this plan, the MLM leader recruits new members under their front line, concerning the width and the depth of the matrix. In this plan, limited members can be added by each recruiter. This direct selling plan appears like a pyramid and is popularly used in domestic and international direct selling.

Importance:

  • With this plan, new members get better compensation at every level of the matrix.
  • This plan also scales its width, encouraging every member to add more downlines for earning higher profit.

The matrix direct selling plan enables huge earning potential for both, old members as well as newcomers.

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hybrid plan

Hybrid Plan

In a Hybrid plan, the company makes a combination of two or more traditional compensation plans. Several companies are undertaking this task to keep up with the competition of the growing market.

Importance:

  • A Hybrid plan helps to grab more potential consumers & increase sales.
  • It is beneficial from both the Company & the Networkers point of view.

Hybrid plan helps small & mid-size businesses to achieve much greater flexibility than any other conventional packaged plans

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board plan

Board Plan

The board plan is implemented through the direct selling software by adding customers in the form of groups. A fixed number of customers can be added to the network in a group, which is called a “board”. This plan is also known as a revolving matrix plan.

Importance:

  • In this plan, members of the group work together as a team.
  • Earnings of the group are split uniformly unless specified otherwise.
  • If the group exceeds the limit of members, the board can be splits into two subtrees and extended further.

In the board plan, the top member gets promoted to the next higher board, and so on.

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generation plan

Generation Plan

Generation plan is one of the basic direct selling plans. It is purely based on the direction in which the sale of products and services proceed.

Importance:

  • In this plan, the focus stays on selling products over adding new members
  • It is a major motivational plan for MLM businesses.
  • It is a well-suited plan for manufacturers of consumable products as it directly connects to the end-users.

In the generation plan, direct sellers do not need to spend any capital on the advertisement.

Read More About Generation Plan

 

Final Thoughts on MLM Plans

A well-suited MLM plans can be determined by the right MLM software. Direct selling businesses need the right MLM plan to manage their demand-supply flow during market penetration and product saturation. Ventaforce, a leading direct selling software can effectively implement the appropriate direct selling plan for your MLM company, based on your sales, commissions, member administration, profit distribution, restocking, and more.

 

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