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An Overview Of 7 Different MLM Compensation Plans

Sep 1, 2008
There Are 7 different MLM compensation plans that will be outlined. No matter who you are in the MLM company, compensation plans can be baffling.

The step and ladder plan or Stair-step is a simple plan that must meet requirements before you can climb the "Stairs of Success". Each step is a promotion based on acquiring a certain volume and each promotion guarantees you a larger cut.

The "Number of Levels" or Unilevel is the amount the company will pay you; this usually does not involve a promotion or rank. Getting a certain override off the volume allows you to make money although there is a volume requirement to qualify for this payment.

"Business centers" can have two "legs" and that is called "The Binary". You will have a volume requirement on each leg in order to get paid and a "balancing" of volume from the A and B group (legs) in order to maximize your commissions.

The Breakaway usually appears in stair-step. Once you get to a certain level of success, your business "breaks away" and is no longer a part of what you got paid on. It is a bit unpopular since you could lose your business. and all the hard work you vested in it is gone.

A pre-order tree is sometimes called the Matrix or Forced Matrix. A plan is put into your group by a computer and this plan is usually combined with some form of a Binary. This works well if there are a lot of people recruited and working in unity to fill the matrix. The key word is working together or this plan will not work. When someone is recruited the computer searches for the next open slot and places the new recruit there.

A very unique plan is the Australian two up. Two people are "given" to your upline and you keep the rest of the recruits.

The Hybrid is the combination of any of the above and an example would be a Force Matrix with Unilevel benefits which ensures that the ones who work to fill a tree will get paid more. The Australian Two Up with Stair-step advancement to offset disadvantages of distributors being too deep in an organization.

Only you can make a plan work but none of them will make you money if you don't recruit individuals and develop them. Working the plan will make you money.
About the Author
Cindy Heller has helped thousands of 'lost' marketers to create a passive income online. Learn how she did it from this free online guide: Passive Income Blueprint.
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