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MLM Compensation Plans Explained

MLM companies use different compensation structures to reward their distributors for sales and recruitment efforts. Here are some common MLM compensation plans:

Great Life Worldwide is a Matrix Plan with a 2 x 12 matrix (expandable to 2 x 16 with unlimited generational bonuses ... see the full plan here.

Unilevel Plan:

Distributors are organized in a direct line, and there are no width limitations.

You can sponsor as many people as you like on your first level.

Usually offers limited depth, which means you earn commissions on a set number of levels.

Binary Plan:

Distributors are limited to two legs (left and right).

Commissions are usually based on the weaker leg's performance.

Encourages teamwork as the success depends on both legs.

Matrix (Forced Matrix) Plan:

Distributors are limited in the number of recruits they can sponsor (width) and compensated for a set number of levels (depth).

For example, in a 3x7 matrix, you can sponsor up to 3 distributors on your first level and earn commissions down to the 7th level.

As soon as you become a GreatLife Affiliate you lock in your position in our fast filling 2 X 16 Matrix!   As a $20 Monthly GreatLife Affiliate you’re automatically qualified to earn commissions without ever enrolling a single person!  Earn 1 Million Levels deep or more – Unlimited Weekly Generational Coded bonuses.

Stairstep Breakaway Plan:

Distributors start at a certain rank and "break away" from their upline as they achieve higher ranks.

Once a distributor breaks away, they operate independently.

The higher the rank achieved, the more earning potential.

Hybrid Plans:

Companies may combine elements of different compensation plans to create a hybrid plan.

For example, a binary/unilevel hybrid combines features of both plans.

It's crucial for individuals considering participation in an MLM to thoroughly understand the compensation plan of the company they are interested in. MLM structures can be complex, and potential participants should be aware of how they will be compensated for their efforts in both sales and recruitment. It's advisable to carefully read the compensation plan documents provided by the MLM company and seek clarification on any aspects that are unclear. Additionally, due diligence on the legitimacy of the MLM company is essential to avoid potential scams.


This article was published on 25.01.2024 by Joe Hache
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