The MLM Generation Compensation Plan is considered to be one of the powerful MLM Plans which can be paid many levels deep. This MLM Generation Plan best suited for the company who manufacture consumable products and want to sale their products directly to the end users.
In present competitive market, company needs to give ads in different advertising media like TV, news papers to increase products selling. The MLM Generation Compensation Plan offers you an opportunity in which there is no need for advertisement expense.
As we all knows MLM is a business in which group of people work for self and others in a network. The distributors work and efforts for sale the products by mouth advertising.
How MLM Generation Compensation Plan Works?
A generation is a whole volume from upline to downline (this includes people with the same and different ranks). The technical working principle of this MLM Plan can be described using the following example:
Assume 16 levels, consisting of only 4 generations. The amount you can get will be more in the case of the first generation, and will be getting reduced for the following generations respectively. Let’s make it more clear, if you pay 10% of your very first generation, it will only be 6% on the second, 4% on the third generation, and 2% on the fourth.
The MLM Generation Compensation Plan is a concept which is based on profit sharing MLM business. The manufacturer share advertising expenses direct to their distributors. When a distributor sales a product the volume will be distributed towards up-lines, that is the reason it’s called a Generation Plan in MLM Industry.
What Type of Compensation Plan is Best for You?
I wouldn’t suggest to anyone that they choose their company based on the compensation plan alone. It may come into consideration, but there are more important things to consider when picking a network marketing company.
Over to you. Do your MLM company use the MLM Generation compensation plan? How is it working for you?