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 best compensation plans 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 exactly do we offer?
Here are some of the major compensation plans and their variants as per demands. To ease your decision-making step easier, we’re providing you with some useful data.
Binary MLM Software
Learn about the binary compensation plan from working to MLM commission calculation based on different criteria...
Software tools Plan workingUnilevel MLM Software
Learn about the unilevel compensation plan from working to MLM commission calculation based on different criteria...
Software tools Plan workingMatrix MLM Software
Learn about the matrix compensation plan from working to MLM commission calculation based on different criteria...
Software tools Plan workingStairstep Breakaway MLM Software
Learn about the stairstep breakaway compensation plan from working to MLM commission calculation...
Software tools Plan workingParty Plan MLM Software
Learn about the stairstep breakaway compensation plan from working to MLM commission calculation...
Software tools Plan workingBoard Plan MLM Software
Learn about the board compensation plan from working to MLM commission calculation based on different criteria...
Software tools Plan workingGeneration Plan MLM Software
Learn about the generation MLM plan from working to MLM commission calculation based on different criteria...
Software tools Plan workingMonoline MLM Software
Learn about the monoline or single line MLM business plan from working to MLM commission calculation...
Software tools Plan workingCompensations
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 here are some of the most popular compensations 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 needs to follow certain laws and abide 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. You can mark on the boxes to assure it and see how the progress looks like.
| # | 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 $192.9 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 gets profited alongside the distributors, Epixel is providing 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’re providing 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!