Introduction to MLM Compensation Plans
Before choosing software, it helps to be clear on how you actually want to pay distributors. Here's a plain-language comparison of the main plan structures.
What a compensation plan actually controls
A compensation plan defines three things: how your organisation is structured (width and depth), how bonuses flow through that structure, and what a distributor has to qualify for to earn each bonus. Every plan type below is a different answer to those three questions.
Comparing the main plan types
| Plan Type | Structure | Best suited to |
|---|---|---|
| Unilevel | Unlimited width, tiered depth | New companies wanting a simple, easy-to-explain plan |
| Binary | Two legs, pairing bonus | Recruitment-driven teams with balanced sponsoring |
| Breakaway / Generation | Leaders break away into new generations | Established companies with strong leadership tiers |
| Force Matrix | Fixed width and depth with spillover | Product-bundled entry packages, simple visual structure |
| Hybrid | Combination of the above | Companies with non-standard or evolving bonus rules |
Choosing between them
There's no universally "best" plan — the right choice depends on your product margins, how you want teams to grow, and how much complexity your back office can support. Ready-made plan types can usually be configured and live within a few weeks; anything combining multiple structures is scoped as a custom build.
Read the dedicated page for each plan type on the right, or get in touch to talk through which structure fits your business.
See it configured for your compensation plan
We'll walk you through how this fits with the rest of the platform.
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