MLM plan is the compensation structure, which outlines how members are rewarded for recruiting others and selling products.
A Multi-Level Marketing (MLM) Plan is essential for companies seeking to promote their products or services through a network of distributors. In MLM, individuals earn not only from their direct sales but also from the sales generated by their recruits, creating multiple levels of earning potential. A well-designed MLM plan should focus on sustainable growth, rewarding both active sellers and team leaders. Popular plan types include Binary, Unilevel, and Matrix, each with its own structure for commission distribution. The success of an MLM plan depends on balancing incentives, retention, and growth, while maintaining transparency and compliance with legal standards.
