Compensation plan is one of the most important thing to check in a MLM business. Better is the compensation plan, better will be your income in short time & less work. Although there are dozens of MLM plans, but I am going to explain you only the most popular plans.
Generation Plan: This is the oldest & safest plan. Most of the big companies like Amway, Herbalife etc. use ths plan. Here you get maximum earnings from your upper levels. But as the levels go further deep, your earning decreases.
Matrix Plan: It’s one of the most popular MLM plan. You have limited width on your first level. Maximum, you can sponsor 5 people in the first level of downline. If you sponsor more members than max then it will be spillover and gives the benefit to your downline. Popular matrix plans are 3×5, 4×7, 3×9.
Binary Plan: This is my favorite compensation plan and this is also called as 2xn matrix plan. You need to recruit only 2 members, one on left and one & right. Your 2 members will recruitment 2 members each. You get same commission till unlimited
