We hope that you will be aware of Multi-Level Marketing (MLM) or Network Marketing. Here I will try to explain what MLM (multilevel marketing) is and the most popular business plans in MLM. So, in the beginning, a few questions come to our mind. Such as
- What exactly is multi-level marketing (MLM and what you need to know?
- Is MLM a standard way of marketing and business?
- How it differs itself from other traditional ways of marketing and business?
Okay, let me explain!
(MLM) Multi-level Marketing is a business approach or a planned structure to sell commodities, goods or services all over by a chain or network of sales agents or members.
The sales agents earn a variety of income primarily by the sale of its goods or services and this income can be earned in multiple ways. Network Marketing is entirely different from the old-fashioned and usual ways of marketing and business.
The recruited agents will receive earnings from direct sales and the sales that are being made by their recruited downline agents. However, the income from direct sales can be higher than the income generated from the sales of down-line agents. This can vary as per organizational business plan.
Have you ever noticed the process of an MLM organization and are they all following the similar business plan or MLM scheme?
Below I am going to make this clear.
MLM business plans or multilevel business marketing plans are a smart arrangement of an MLM company’s strategy or overall operational idea, which then moves towards the company’s business objectives.
MLM (multi-level-marketing) is a marketing business to compensate its organizational member or agent who willingly joins the network marketing business by getting its membership and this membership can be paid or free as per organizational business plan.
This is a standard business model in the network marketing business to provide earnings to its agents or members in different ways as per the MLM compensation plan.
Although the MLM compensation plan is the foundation of any referral marketing business organization.
There are several MLM schemes or plans in the network marketing business with a different architecture of functionality.
What kinds of MLM plans are there or the most popular plans in MLM nowadays?
Further, I am going to explain the leading multilevel marketing (MLM) business compensation plans that are in fashion these days. Here we go:
1. Unilevel MLM plan
Unilevel Plan is very easy, most popular, understandable and attractive for the network marketing companies. Expectations are all high in this plan and diminish the chances of chasing your tail anymore. Unilevel plans go up to one level down and every member is eligible and free to recruit as many people as a member wants in his or her respective down-line. Unilevel Plan is most welcoming and favourite plan for MLM organizations and the members as well.
2. Binary MLM plan
Binary MLM Plan is also the most popular plan among the multi-level marketing business industry. In Binary plan any member or agent can recruit two persons in his down-line and both legs can be considered his or her right leg and left leg. Both down-line members will generate business in this binary tree and income will be generated and distributed as per the organizational compensation plan. The binary plan generates maximum returns and incomes as compared to other plans. Most of the network marketers, part-timers and members who want to earn through multilevel marketing business prefer Binary plans to other compensation plans. If you need to know more about MLM Binary plan, you can read our previous blog and this will also explain the importance of the Binary plan in MLM perfectly.
3. Matrix /Forced Matrix MLM plan
Matrix MLM Compensation Plan is also among the primary and most loved plans in Multilevel Marketing Business. Matrix business plan is also well known as a forced matrix or ladder Plan. The matrix compensation plan supports in extending the tree as per the requirement and this comes with multiple features. This unique distinctive compensation plan has a fixed or limited width and length, so understanding the features of matrix plan helps in using it appropriately and members in matrix plan are compensated once after they achieve a fixed or set level. Most common examples of Matrix and forced matrix plans are 2×2, 4 x 7, 5 x 7, 3×3 matrix, 3×5 matrix, 3×9 matrix, 4×7 matrix etc.
4. Investment MLM plan
The investment MLM plan is another most common lucrative MLM Business Plan. Investment plan provides a secondary income to the members in terms of royalty. In pursuance of this business plan, Investment Plan is to invest erstwhile and earn at a continually increasing rate of money in terms of royalty income. An investment plan, most MLM Companies offer a regular daily basis percentage of money to its members based on their investment type or volume in the company.
5. Generation MLM plan
Generation plan is another finest example of popular MLM compensation plans globally. In this plan, all down-line members or agents can be seen as distinct levels and this plan is generally based on the revenue sharing business model in which profit is distributed among all members according to organizational business plan. This plan can be considered as most secured plan in multilevel marketing business industry. In some specific areas, this plan is also known as repurchase or generation gap plan. Although MLM Generation plan is not as easy to understand as some other simple MLM business plans
MLM Generation plan is a little bit complicated to understand for common people as compared to other compensation plans but this plan comes with some other great features that make this plan acceptable and popular in network marketing. In this plan, a member is paid up to several levels and depth of the levels provides a member with an added advantage to boost salesmanship and income as well.
6. Monoline MLM plan
The Monoline MLM plan is widely known as Single Line or straight one-dimensional Network Marketing Compensation Plan which carries one leg for each member. Monoline multi-level marketing plan is a very popular and fashionable present-time plan. In Monoline you will not find any kind of ceiling or capping and no required level of the business compensation plan to be eligible for MLM. Timing is the most important thing in the Monoline plan because this plan is totally based on ‘first come & first serve basis. This quality makes this plan very popular and known nowadays in network marketing business.
7. Stairstep MLM plan
Stairstep MLM plan is also widely known as stair step break-away or simply stair-step business plan. MLM Stairstep breakaway plan is one of the classical compensation plans still in fashion and being used in the MLM world. The most important feature of this plan is its breakaway option. In this plan, if any member or agents reaches the certain level as per organizational business plan and then being eligible for another level, he achieves the reward for this job but there will be given targets to be achieved as per the MLM business plan.
8. Gift/Donation MLM plan
MLM’s Gift plan is also called a donation plan or crowd-funding plan. The donation or gift plan MLM companies use different terms or names based on their business strategies. The logic behind MLM’s gift plan is to gift a member in their respective MLM chain and to get gifts in return from other members. This gift can be given in terms of money to each other. In the same ways, donations can be given to each other and some amount of money can be charged from the members as company expenses or registration money.
MLM is a business that is very popular now a day that is very different from other models of business in the market. In this business, anyone can get success with very minimum investment and smart work. The chances of incomes are very high because any particular organization doesn’t need to invest money in advertisement and traditional ways of marketing. In other words this is called the ‘word of mouth’ publicity, means that people who have used and explored any service or product and give positive feedback to their friends, family and even strangers about their good experiences of any particular product or service and this way any product or service finds publicity and effective way of marketing.
However, every Network Marketing (MLM) company has its unique and separate business compensation plan to compensate the members who willingly joined the business. The run-of-the-mill feature that is commonly found across all MLM business plans is that the business compensation plans hypothetically payout to its agents or members-only from a couple of possible royalty schemes.
The initial one is earned from the commissions of sales made by the members directly to their own customers. Another one is earned from the commissions primarily from the wholesale purchases made by other down-line members who were recruited in the same particular MLM tree or team by the team leader. So basically he will be paid by his own sales and also the sales made by his own team’s down-line members though the earning percentage or volume can be different in each MLM business plan. So chances will be higher and dreams are bigger. In the respective MLM organizational hierarchy, these members are generally referred to as one’s down- line members or agents. For the management of any multilevel marketing (MLM) organization you will need a perfect MLM software solution that can manage all the operations of any MLM company and I will explain here the importance of MLM software
So we can figure out that Multi-level marketing (MLM) Software has a very crucial role in the success of any multi-level marketing business. We as, Cauri Softech Pvt. Ltd. care to understand the client’s business plan and when the time of software development, our expert developers integrate all kinds of MLM plans in software as per the business need and requirement of every client. Apart from business plan integration, other third party integrations, add on modules and needed customization is being done professionally by our experienced programmers.
Cauri Software Pvt. Ltd. Is an award-winning IT & Software development company headquartered in Jaipur city of India having offices in Melbourne (Australia), Douala (Cameroon) and Dubai (UAE). We have the proud presence of our valued clients in 32 counties with 280+ national and international clients
We have written a blog about MLM landing page rules and tricks to get maximum conversions of leads through your landing page so check this out in our blog section.