October 22

Maximizing Your MLM Compensation Plans

Beach Boss Influencers

Table of Contents

What is the best way to maximize your MLM earnings?

Well, that depends.

If you want to know how to be successful in an MLM, you need to really understand your company’s compensation plan.

Let’s take a look at the different types of compensation plan structures and the MLM strategies that could work for each.

Maximizing Your MLM Compensation Plans
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Types of MLM Compensation Plans

While companies may have their own unique spin on these compensation plans, here is the gist of each of the different types of compensation plans.

Binary Plan

Many MLM companies began by using a binary compensation plan.

You start as a new tree.

You can have two direct recruits.

They can each branch off and have their own two recruits.

One leg will inevitably earn more than the other over the course of a month.

Your lesser leg determines your commission.

This encourages you to work with both sides of your tree, and it promotes teamwork.

Unilevel Plan

Under a unilevel plan, your growth is unlimited.

You can sponsor as many recruits in your first level as you want.

They can sponsor as many recruits as they want, too.

Your growth width can go as wide as you can make it.

You earn a percentage of sales from your first and second levels.

The downside is that it can be difficult to grow your own wealth from this without a large network of recruits ready to sign up under you.

You might find it hard to keep track of everyone in your organization as well. An MLM tracking software can be your friend here.

Matrix Plan

A matrix compensation plan is a more narrow version of the unilevel plan.

Instead of encouraging wider growth, the company limits the number of recruits on your direct downlines for each level.

After someone has a certain number of recruits, they break off and form their own team.

Unlike the unilevel plan, compensation comes from all levels underneath you.

So, even though you are limited in how wide you can go, you are unlimited in your path down.

This makes it much quicker to start accumulating profit since those in your downline can continue to help build up your downline.

Breakaway Plan

You can benefit from a breakaway plan if you time it right.

When you start building your own organization, you earn a commission off of your downline as well as your downline’s downline.

When someone in your downline breaks off to become their own organization, their downline stays with you.

A stairstep breakaway plan is very similar to a breakaway plan.

The only difference is that you can step up to higher levels of commission the more people you sponsor.

Hybrid Plan

A hybrid compensation plan is a combination of any of the other types of compensation plans.

Strategies by Plan

Different plans can have different pros and cons.

If your goal is to earn as much as you can as quickly as possible, you will need to strategize.

For compensation plans that reward you for recruiting, make that your focus.

For compensation plans where you only receive a commission on sales of your immediate downline, keep that in mind as you bring people onto your team.

Binary Plan Strategy

If your MLM uses a binary plan, do your best to keep both legs growing.

Be strategic about where you place new recruits; you will want to keep the growth and sales as balanced as possible.

Keep an eye on how each leg is doing compared to the other. You may need to adjust your focus from time to time.

Unilevel Plan Strategy

Direct recruits are rewarded in a unilevel strategy, so you want to focus on building a strong team.

Your income directly depends on the number of people you personally recruit.

You will want to provide thorough training and support to your recruits.

Motivate them. Recognize their accomplishments and hard work.

When they do well, you do well.

Matrix Plan Strategy

If you are in on a matrix plan, understand where you fit.

Max out your matrix by filling in the positions and encouraging your team to do the same. This will get both you and your team members commissions and bonuses.

Once you fill your matrix, reroute your focus back to sales.

Breakaway Plan Strategy

If you know your downline may break off to form their own organization or team, you will need to prepare for it.

Help them become a great leader. Teach them and support them so they will succeed when they do break away.

Keep supporting them even after they have broken off. Their downline still provides you with residual income, and you want to keep them encouraged.

Don’t rely too much on certain individuals and their sales for your commission.

When they break off, you’ll lose that, so plan ahead for it to make sure you still have a strong team remaining behind.

Overall Strategy

Regardless of which plan your company uses, the general theme is that your best strategy will be to be a great leader to your recruits and your team.

Help them set goals.

Keep track of their hard work.

Recognize the efforts they are putting in.

Provide training and resources.

Give your team incentives to work hard.

When they succeed, you succeed.

So, help them be their best.


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Beach Boss Influencers

About the author

The Beaches (Adrian Lindeen, Brandy Shaver, Cari Higham, Fran Loubser, Kat Krasilnikov) offer coaching and mentorship to network marketers who are in the trenches building their businesses using social media right now. Our community is FUN, EXCITING, and focused on our students getting RESULTS; Enrolling customers, teammates, ranking up in their businesses, growing 6&7 figure teams. All without working 24/7 and still having time freedom and a life. 

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