Free Tool

Compensation Plan Payout Simulator

Model payout liability, effective ratios, and per-rank earnings for any MLM compensation structure. Designing or auditing a compensation plan without running the numbers is one of the costliest mistakes in direct selling. This simulator lets you input your plan type, commission percentages at each level, average order value, and hypothetical network size — then instantly projects your total monthly payout liability, effective payout ratio against industry benchmarks, and per-level earnings estimates. Whether you're stress-testing a new plan before launch or identifying margin risk in an existing structure, use this as your first line of analysis before bringing it to your compensation architects.

Step 1 — Plan Type

Binary Plan: Each distributor builds two legs (left/right). Commissions are paid on the weaker leg volume. Typical depth: unlimited levels with weekly cycle caps.

Step 2 — Network Parameters

Average Order Value (USD)

Active Distributors in Network

Monthly Active Rate (%)

30%

Number of Levels to Model (max 8)

Rollup Factor per Level

2.5x

Step 3 — Commission % by Level

Total commission pool: — of volume

Step 4 — Industry Vertical

Select your vertical for benchmark comparison

Configure your plan on the left and click Run Simulation to see payout projections, breakeven analysis, and per-level earnings.

Total Monthly Liability

—

estimated payout/month

Effective Payout Ratio

—

% of gross volume

Avg Earning Distributor

—

monthly per earner

Effective Payout Ratio vs Industry Benchmark

0%10%20%30%40%50%60%+

Per-Level Payout Breakdown

Level	Est. Distrib.	Active	Gross Volume	Comm %	Payout	Avg/Person
Total

Breakeven & Risk Flags

Industry Payout Ratio Benchmarks

Sourced from DSA income disclosures, FTC filings, and compensation design audits. Your selected vertical is highlighted.

Industry Vertical	Typical Range	Breakeven Threshold	High-Risk Flag

Want to model this against your actual plan?

Talk to our compensation architects. We'll run a full payout simulation against real network data, flag compliance risks, and stress-test your margins.

Talk to a Compensation Architect See Live Demo