A well communicated MLM business plan not only adds credential; it also creates a blueprint to manage your business. To carve anmlm planfirstly you need to set your management goal and procedure; this way a proper business plan will follow the suit. Your marketing, business and advertisement strategy ought to be included in your compensation plan.Low Cost MLM Software, Have a look at some of the well known plan:

Binary Plan

The mlm plan which allows distributors to go with only two front line distributors is called binary plan. The beauty of this plan is that if a distributor sponsors more than two distributors they will be placed beneath the front line or level below the sponsoring distributor front line. This is called "spillover", where the new distributors need to sponsor only two distributors in this business plan.


1.Level Binary

2.Simple Binary

3.Hyper binary

4.Australian Binary

Board Plan

Board plan is basically 2*2 matrix plan, although structure of which is presented in rectangular form. Board structure is fixed. It may be of 1-2-4, 1-2-4-8, 1-2-4-8-16 and so on. When all places filled in board, it split into two new boards & topmost id stepped out from the board. By this way the number of boards increases after each splitting.


1.Feeder board

2.Main board

Matrix Plan

Matrix Plan can be defined as anmlm business plan which has set width and depth. Apart from much variation to this model, the basic concept is altogether the same. In matrix plan the tree grows in 'n * n' structure only. Matrix property can be of 3X3, 4X4 etc. In 3*3 matrix plan the spill concept is applicable. In that case, the 4th onward direct will be called as Spill and can be placed in down line structure as per respective logic of Spill.

Generation Plan

Generation plan is based on structure of generation. All first level sponsors are actually directs of single sponsor. In generation plan income is distributed as per generation levels. Generation income distribution may be as per pre-defined amount per level, may be in terms of % of joining cost and may be % of repurchase BVs. Each new paid joinee of up line is entitled to receive generation income.

A generation can be defined as the whole volume from up line to down line. If we take example of assuming 16 levels, consisting of only 4 generations. The amount you will receive is more in case of first generation and will get reduced to subsequent levels.

It boast unlimited length and depth along with unlimited number of joinee. Generation income is distributed to up line of each new paid joinee.

Diffential Plan

MLM differential plan is based on purchase BV/PV. Maximum allowed percentage which has to be distributed among the members has to be decided by the company. Hence each member avail difference between maximum PV percentage he can get and percentage PVs which are already distributed in down line. "Differential Plan", is termed as because of difference between down line and up line PV percentage.

The beauty of differential plan is that it is very predictable. Among all other compensation plan this one has the strongest potential. The plan has lot to offer a company. As the commission is depend upon the difference between down line and up line PV percentage hence it is termed as "differential compensation plan".

Unilevel Plan

Unilevel Plan has no limitation on width (i.e. there is no limitation on number of people you can sponsor in your frontline) and commissions are paid normally on a limited depth. Hence, the common goal of this plan is to recruit as many frontline distributors and also encourage them to follow the same process.

Unilevel as the name suggest itself it allows you to sponsor one line of distributors. Hence everyone you sponsor will be on your front line. The main feature of this unilevel plan is that there is no limitation on number of people you can sponsor on your front line. This plan is considered as simplest of all plans as in order to earn commission only a nominal amount that is attained through specific personal volume is required.


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