In multi-level marketing & Network Marketing Software, selecting the right MLM compensation plan is crucial for aligning your business goals, product offerings and long-term growth strategy. With countless plan structures available, choosing the best plan requires evaluating several key factors such as:
These elements form the foundation of a strong and sustainable MLM compensation plan. Volochain , as a trusted MLM software provider, simplifies this process by offering reliable, scalable, and customizable MLM plans designed to fit your business model. From plan consultation and design to development and restructuring, we help businesses implement the perfect payout structure tailored to their MLM Business.
Below are the major MLM compensation plans commonly used in the industry, along with their key features, workflow logic and payout structure.
The Unilevel Plan operates with a single business level where all of a distributor’s downlines are placed directly beneath them. With no spillover, every recruitment effort brings direct benefits to the distributor. This model is widely preferred by companies for its simplicity, high flexibility, and strong earning potential, making it a reliable choice for MLM growth.
The Generation MLM Plan works on a profit-sharing mechanism and is commonly known as the Gap Commission Plan or Repurchase Plan. It is viewed as a strong compensation model that offers earnings across multiple levels. Your income and overall success depend heavily on how well your downline performs.
The Party Plan MLM is a widely used and highly profitable compensation model known for its simplicity and visibility. Distributors market products by hosting social events where items are showcased and demonstrated. This approach is especially popular for selling cosmetics, kitchenware, and similar household products.
In the Stair Step Plan, a distributor and their team “break away” once they achieve the highest rank. After breaking away, this team is positioned as a separate leg or tree directly under the admin, where they begin functioning as an independent group. This structure enables members to build larger teams and earn commissions from deeper levels within their down-line.
The Matrix MLM Plan is a structured compensation model where members are placed within a predefined set of rows and columns. With a limited width, the system allows companies to build deeper downlines while keeping a consistent number of frontline distributors. This plan works effectively for both part-time participants and full-time network marketers, offering balanced growth opportunities for all.
The Board Plan is a compensation model designed for networks with a limited number of participants. As the name suggests, the core of this plan is the board structure. The commonly used 2×2 board requires each member to recruit two new individuals to move forward. Multiple versions of this plan exist, including single-board, multi-board, shuffling and auto-filling formats.
The Monoline Plan follows a Simple business model that is easy for anyone to grasp. Also called the Single Leg or Linear MLM Plan, it provides monthly earnings that override all members placed beneath you, including those you haven’t personally recruited. This structure is often considered ideal for new MLM companies looking to enter and establish themselves in the market.
In the Gift Plan, participants contribute gifts or donations to another member and in return, have the opportunity to receive gifts from several people within the network. Because it follows a “give and take” approach, it is also known as the Donation Plan or Helping Plan. This model is often used in crowdfunding projects and charitable donation systems.
The spillover Binary MLM Plan is a compensation structure where new recruits are automatically placed in the downline of existing members when a sponsor’s legs are full. This spillover allows distributors to grow their network faster, even with fewer direct recruits, promotes teamwork, ensures balanced growth, and enables earnings from both personal and spillover recruits.
The Investment MLM Plan is a compensation model where participants earn returns based on their invested capital in network marketing. Members can earn profits from their own investments as well as from those made by their downline. This plan encourages both recruitment and financial contribution, providing structured earnings and growth opportunities within the MLM network.
The Forced Matrix Plan is a structured MLM compensation model where distributors are placed within a fixed number of levels and width. Because the downline capacity is limited, new recruits automatically spill over to the next available position, helping team members grow collectively. This plan ensures balanced network expansion, controlled growth, and equal earning opportunities for everyone in the system.
The Australian X-Up Plan is a modified version of the traditional Unilevel MLM structure. In this model, distributors must pass their first X sales to their upline. Once these initial sales are passed up, they can start earning commissions from all future sales. The plan can extend infinitely in depth and offers substantial commission potential on product sales.
The Australian Binary Plan is an enhanced version of the tri-binary MLM structure. In this model, distributors can sponsor more than two direct downlines and create additional parallel legs beyond the usual left and right positions. This expanded structure allows members to build wider networks and generate commissions more quickly compared to traditional binary plans.
The Hybrid MLM Plan merges the strongest features of various MLM compensation models. One of the most common combinations is a hybrid of the Unilevel and Binary Plan. These plan can be tailored to match a company’s specific needs, helping to minimize the drawbacks of individual plans while maximizing their advantages.
The Binary Plan is one of the simplest and most widely adopted MLM compensation structures. Built on a two-leg format, it encourages teamwork, balanced growth, and consistent distributor engagement. Its straightforward design and attractive earning potential make it a preferred choice for many MLM companies that value clarity, strategy, and scalable development.
We know that every MLM compensation plan comes with its own structure and operational needs. Regardless of the plan your company follows, you need a powerful, cost-effective, and fully capable MLM software to efficiently manage your network. Volochain MLM Software ensures that all core processes run smoothly and remain easy to monitor.
Our platform supports all major compensation plans and can be customized extensively to match your business model. Every solution we deliver is built to align perfectly with the unique payout structure you choose. With a highly experienced team that closely follows the latest trends in the MLM industry, we ensure your business always stays updated and future-ready.
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