About MLM compensation plans
We are frequently asked which compensation plan is considered the best.
There are numerous terms on the market. Some call it compensation plan, some marketing plan, income plan, carreer plan or even pay plan and success plan.
Essentially, a compensation plan describes your sales strategy and will aim at attracting and promoting new distribution partners and thus increasing the sales of your direct selling business.
Are you using a classic single level plan focusing mainly on your own direct selling or rather a step career plan that is suited particularly well for the sales of products in direct distribution?
Both types of compensation plans have advantages and disadvantages and both types attract different kinds of distribution partners.
Single level compensation systems are mainly used for party sales or classic direct distribution focusing on selling products. Multilevel systems are mainly found in network marketing. The aim here is to combine large distribution organizations to allow commissions to flow towards the top.
A thorough examination of business giants such as Amway, Herbalife, NSA, Nikken, LR International, Network World Alliance, Forever Living Products or Nu Skin Enterprises reveals they have one major thing in common:
They use so-called Stair Step Breakaway Plans to pay their distribution partners.
The stair steps symbolize the individual levels of a compensation plan and the associated commissions titles for distribution partners.
Together all attainable levels form a staircase leading towards the top position of the compensation plan.
Further major components of the compensation system are breakaways, also called "generations".
When distribution partners reach stipulated targets, some branches in the structure can break away and form new "generations".
Upline does not come with a one-size-fits-all compensation plan. We implement your specific qualification and compensation processes in your very own "script"!
You have total freedom of defining your company's compensation plan with all its distinctive features and product specific characteristics and are not bound by regulations or restrictions mandated by your software.
The following compensation systems have already been successfully implemented in Upline:
- Unilevel plan
- Breakaway plan
- Stair step breakaway plan
- Party plan
- Single level career plan
- Hybrid marketing plan
- Binary marketing plan
- Matrix career plan
- Various bonuses
- Debited turnovers, roll-up, compression
- Optimistic or pessimistic
- Guarantee of correct commissioning
(such as fast start bonus, generation bonus, car bonus, infinity bonus, override bonus and many more)