MLM Software & Consulting Blog

What is the Most Convenient Compensation Plan for Your Network Marketing Business

Multilevel marketing businesses are one of the most popular way of having home based business. There are people who find their success in MLM and who are not. But with effort, time and knowledge literally anyone can graduate on their network marketing business till it becomes cooperate business. Selecting the best suitable compensation plan is the problem many people face when starting their MLM business. The best network marketing compensation plan for a business depends on various factors and it should be chosen wisely.

Unilevel Commission Plan
In unilevel, more people you recruit to the downline more rewards you can get. But usually there are limits on receiving commissions when the height of downline is increased. This encourage members to expand width of their downline. Unilevel is easy to understand and manage compared to other MLM compensation plans. But unilevel compensation plans rarely inspires team work as all the downline members are competitors of one another.

Matrix Compensation Plan
Specialty of matrix is, ability to set  limits for maximum width and depth. In the industry, numbers are used to demonstrate width and depth of particular matrix compensation plan. For example if the maximum width of matrix plan is 8 and depth is 4, it is demonstrated as 8 * 4 matrix compensation plan. Excellent managing is essential for matrix plans as otherwise some levels can be totally left away without any attention. In other words the more width the matrix plan have, there are more work to manage and is difficult. As this is the case, consider to go for more depth than the width. If there are weak downlines with empty spots, you can always replace those spaces with new members. There are no rules on how, or when you can recruit and on where you can place new members in the downline.

Custom Made Compensation Plans
If any of these multilevel marketing compensation plans are not convenient, you can get customized compensation plan as for requirements. But designing customized plan is not easy. It needs knowledge and skills to design customized compensation plan from the scratch. There are software tools as well as services such as which offers unique facility of creating custom MLM compensation plans as per requirements of businesses.