Multi-level marketing plans are sophisticated solutions for compensating the most precious elements of an MLM business: network affiliates. The MLM compensation plans are the backbone of an MLM business because an optimal plan allows an entrepreneur to capitalize on the strengths of his sales network thereby generating maximum revenue for his company.
To your dismay, there are numerous multi-level marketing plans are available in the market to perplex a budding entrepreneur. However, a few popular ones own a track record of being successful in a variety of MLM businesses.
This article is all about informing and guiding you to choose the best from a wide-array of MLM compensation plans.
Commonly, there are four highly preferred MLM compensation plans:
1. Unilevel MLM Plan:
This is a profoundly simple plan with the least complicated network structure. As the name suggests, the recruits of a sponsor are placed beneath him all at the same levels. The tree grows in a simple fashion with all the distributors in one line.
The MLM business plan can grow to an unlimited depth without any restrictions. This is a basic plan adopted by all sizes of MLM companies.
The members can earn in the form of sponsor bonus, fast start bonus, level commissions, leadership bonus pool, and rank advancement bonus.
2. Binary MLM Plan:
Binary MLM plan is highly popular and preferred compensation plan among MLM veterans. Again, the name justifies the mechanism of the plan. The binary structure depends on number 2. The matrix is defined using the formula: 2*2 which means that there can be two distributors at each level under each member. The rest of the recruits are placed in the downline depending on the availability of the space.
The spillover effect by which members are given positions in the downline is the central concept of Binary MLM plan. It leads to higher earning opportunities for the members.
The income comes in the form of sponsor bonus, binary commissions and matching bonus.
3. Hybrid MLM Plan:
Hybrid MLM plan is the answer to all the concerns you might have with one or the other plans. A hybrid MLM compensation plan is no less than a customized MLM business plan that takes the positives of binary and uni-level plans for the most optimal solution.
So, the crux is: the drawbacks of both the plans are eliminated. Affiliates can earn through custom bonus schemes, sponsor bonus and commissions.
4. Generation MLM Plan:
The MLM plan is also known by names like Repurchase Plan or Gap Commission Plan. The plan structure is simple and depicts generations or genealogy. The recruits of a sponsor are placed at one level that forms his generation. The plan grows by leaps and bounds as there is no limit to the depth and width it can reach to.
The plan is easy to execute and understand. The members find it easy to work with this plan. The members can earn level wise income as well as differential income under this MLM business plan.
These are some of the highly productive and efficient plans in the MLM business. However, the list is not at all exclusive and there can be better options as per your suitability.
To understand, implement and manage the MLM compensation plan of your choice, you can employ an MLM software that comes with the latest features to support your MLM business.
Not only the management of plans, but the MLM software also helps you in scaling and adapting the MLM plans when business scenario changes and new challenges are confronted.
There are various packages available that you can choose from depending upon the features you wish to embed and integrate with your business to make it streamlined and sophisticated.
Hope, the mentioned above details will be useful and guide you in selecting the most feasible MLM compensation plan.