Best MLM Compensation Plans
In multi-level marketing or direct selling companies, choosing a suitable and best MLM compensation plan is a tricky deal. Although there exist many plans in the industry, decision-making on picking the best compensation plan needs to consider many factors. Some of the important factors are,
- Product/service category
- Product cost to selling price ratio
- Existing laws in the market
- Training & marketing methods
Decision-makers take these factors or even more into consideration while developing a compensation plan structure. What Epixel - Network Marketing Software Company aims to perform is to ease this step for consultants & direct selling/MLM companies.
What do we offer?
Here are some of the major compensation plans and their variants as per demands. To make your decision-making step easier, we’re providing you with some useful data.
MLM Compensation Plans
Here are the major compensation plans and their features explained methodically with plan working calculations and demonstrations.
Binary MLM Plan
An easy-to-understand two-legged compensation plan that offers rapid growth opportunities and unlimited depths.
Unilevel MLM Plan
Universal plan with unlimited members in the frontline offers maximum benefits to the distributor from the combined effort of their team.
Matrix MLM Plan
Perfectly structured compensation plan with a fixed width and depth brings a balanced payout structure and numerous compensation possibilities.
Stairstep Breakaway MLM Plan
Highly rewarding business plan, based on rank hierarchy, boosts distributor productivity and increases sales efficiency.
Board MLM Plan
The plan that can be combined with any plan, ensures guaranteed growth opportunities for distributors.
Generation MLM Plan
Most sought-after plan for e-commerce business with various generation levels of users to maximize productivity.
Monoline MLM Plan
Single line structure with unlimited business levels offers multiple positions to distributors in the same genealogy tree who qualify set criteria.
What is MLM Compensation
Marketing in an MLM business model indicates the selling part, and compensations are the rewards for a sale from Personal Sales Volume (PSV) or Group Sales Volume (GSV). Usually, compensations are provided as commissions or bonuses.Commissions are provided based on PSV and bonuses for GSV or group efforts.
Each type of compensation plan does have a unique compensation structure. However, an MLM company mostly has a hybrid compensation structure i.e. multiple plans are used. Thus the same commissions/bonuses can be seen in different plans.
There are many types of compensations, and all compensations are supported in the Epixel compensation engine. We also support custom compensation plans as per the requirements of the direct sales company.
MLM laws compliant in Epixel MLM system
Network marketing/MLM companies need to follow certain laws and abide by them properly. Here is an 8-layer general MLM rule chart one must assure to make the business legitimate. Make sure you follow these rules. Mark the boxes accordingly and see how your business progresses.
| # | Law compliances | Yes | No |
|---|---|---|---|
| 1 | Real products to sell | ||
| 2 | Compensations for recruiting only(No compensation for product sales) | ||
| 3 | High joining fee than provided product kit | ||
| 4 | Constant price inflation | ||
| 5 | Products sales reach customers outside the network | ||
| 6 | Forcing distributors to recruit more people instead of more product sales | ||
| 7 | Frequent payout rescheduling | ||
| 8 | Too many discounts offered |
*The above law compliance factors are derived based on FTC rules.
There exist many such laws and rules in different regions of the world. As direct selling is a globally accepted industry with a $180.5 billion turnover, the customers are also spread globally.
Epixel MLM system is a customizable software engine suitable for all direct selling business groups. Our system is compliant to meet and process compensations based on these laws.
Quick calculations, faster payout!
Distributors become active when they get rewarded quickly i.e. schedule their payout in time. However, to decide what all compensations to provide them without shifting the company’s revenue is a tough call.
To assure that the company also gets profit alongside the distributors, Epixel provides MLM CALCULATORS. MLM calculators can quickly calculate or simulate the following,
- How much profit do you earn?
- Decide the right amount of compensation to reward distributor by balancing the company revenue
- Decide how many levels to set in a compensation plan for spillover
- Pre-calculate the values to set for startups
- Companies and consultants can review their plan easily
- Consultants can use simulators to advice direct selling companies about which plan suits best, switch to a new plan by making use of multiple plan calculators
In short, calculators are the primary things you can use to easily predict the future of your business based on the values.
MLM CalculatorsSimilarly, we provide many useful tools to analyze and manage your business. As a decision-maker or a consultant, you can always refer our system to understand the value of the MLM package we provide. Feel free to contact us, we’re always there to help you!
