How to Calculate an MLM Marketing Plan for Network Business

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The marketing plan is the basis for the viability of the network business, determining the structure of the network and the mechanisms for motivating its participants. A correctly selected and calculated bonus plan can not only stimulate the growth and development of the network, but also ensure its long-term sustainability and, in general, the financial stability of the MLM company.

Types of MLM Compensation Plans

A marketing plan or bonus plan is a system of rewards for MLM company distributors, indicating how and for what they receive income. It includes the rules and conditions for receiving commissions for personal product facebook data sales and sales of attracted participants, as well as bonuses for achieving certain sales or recruiting goals.

The MLM industry uses several types of marketing plans, each of which has its own characteristics and mechanisms for rewarding network participants. The most popular among them are:

1. Level

A classic compensation plan, where each distributor forms only one network level under themselves, and all the participants they attract are placed in one line. It has absolutely no width restrictions. Commission payments here depend on personal sales, direct referral sales and the level of the structure. MLM companies determine up to how many levels and what percentage of commissions distributors will receive.