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MLM Business Plan Network Marketing

12 MLM Business Plans, Types, Benefits and with Examples

MLM Business Plans

In this article, we will tell you a brief introduction to MLM business plans, and the types of MLM Plans, working benefits, with examples.

There are a lot of people who join MLM companies and earn a lot of money but are still unaware of the various types of plans that are there.

Hence, they get confused about which plan to choose among all these types.

So, in this article, we provide you all the necessary information that is required to know about the various business plans.

What is MLM?

MLM stands for multilevel marketing business plan.

Multilevel Marketing is a business plan where the company sells its products through non-salaried employees.

The company earnings will be on product sales and the earnings of their workforce will be based on the commissions from the sales and through the Binary compensations system.

Network marketing is a booming business and we can expect a decent income by joining them.

There are many people who are completely dependent upon the MLM business and settled pretty well.

Their success lies in their selection of good choices and the legal company.

Types Of MLM Business Plans

There are countless business plans available and all of them work in unique ways. Some of the legally used ones are:

  1. Binary MLM Plan
  2. Australian Binary MLM Plan
  3. Spillover Binary Plan
  4. Broad MLM Plan
  5. Unilevel MLM Plan
  6. Matrix MLM Plan
  7. Generation MLM Plan.
  8. Single-line (mono-line) MLM
  9. Australian X-up plan
  10. Party MLM Plan
  11. Gift MLM Plan
  12. Hybrid MLM Plan

Let us talk about all of them one by one.

1. Binary MLM Plan

According to Binary MLM Plan, one associate can add 2 members directly as its downline.

Here both the associates act like 2 subtrees namely the left subtree and right subtree.

Since all members here are only responsible for adding 2 members as a downline, they do not have to bang their head in recruiting a lot, and this way the team size increases rapidly.

This whole plan works as a tree structure as shown in the below image.

Binary Mlm Plan

Now if the associate wants to add other members to the list or wants to add more ID’s then all those entries will be added to the extremes, which means either in the extreme right or extreme left.

For example, see the below picture.

Binary Mlm Plan2How does this plan work?

In a binary plan, the associates can recruit 2 members into the first level.

So, your compensation bonus will depend on the leg which has fewer members.

To understand this concept, imagine that you have 12 members on your right leg or right subtree and 10 members on your left leg or left subtree.

So, your compensation bonus will be based on the leg/subtree since it has fewer members.

So here all your profit depends on your team, your entire team needs to be active and must recruit more and more downlines.

If any part of your team is inactive and is not able to make a profit, then your entire profit margin will decrease.

Those companies who follow this plan has some unique commissions for the associates, they are:

  • Direct Sponsor Commission
  • Binary Commission
  • Matching Commission
  • Team Commission
Benefits of Binary MLM Plan

Since we only have to add 2 downlines the burden of recruiting is very less hence one can concentrate more on selling products.

The commission is earned from the downlines as well as they buy products.

2. Australian Binary MLM Plan

Australian Binary MLM plan is close to the Tri-binary MLM plan, like a ternary tree.

Here you can add an extra downline or the third downline.

This situation is depicted by the image below will help you to understand the scenario.

Australian Binary mlm Plan

How Does This Plan Works?

Even though this plan is not as popular as the Binary plan and matrix plan, but adopting this plan will not disappoint you at all.

Here you will have to add 3 members as your downline or we can say like the associate can introduce/add 3 downlines from whom he can earn profit.

Two members will be on the right and one on left.

In the third level, the uplines need to add 2 downlines each. So, this is how the network will grow.

Australian Binary Mlm Plan

Benefits of Australian Binary MLM Plan
  • This plan helps the primary person to put less effort and make more profit.
  • There are some criteria’s upon reaching those you will be able to earn bonuses and commissions
  • This method is very helpful and provides the best calculation methods hence is profitable not only for the company but for the client as well.
  • Since there are no many headaches involved in this plan, the network growth and profit earned increase vaguely.

3. Spillover Binary Plan

This is another version of the binary plan; we can call it a variant but there is a slight difference between the two of them.

In a binary plan, you need to recruit a pair of downlines, but here you can recruit one more.

We have talked a little bit about it in the binary MLM plan section, hope this below image will help you to remember.

Spillover Binary Plan

Here if you can recruit others you can do it and add the extra downline at either extreme right or extreme left. It’s like adding an extra leg or subtree.

How Does Spillover Binary Plan Works?

As the name suggests, spillover means when you spill over to your downline.

You earn your profit if your downline works efficiently and completes the tasks.

So, being an upline you need to choose your downline wisely and trust them.

Your downline will only work hard and be active when you keep motivating them and support them throughout.

Your motivation will help them to build a big network and earn profit out of it.

Now the main point is that all your downlines must remain active to earn a profit because inactive downlines will lead to less profit or no profit at all.

So, if your team has inactive users then you must replace the inactive downlines with new associates.

Benefits of Spillover Binary Plan
  1. There are a lot of bonuses you can earn if you get involved in this plan some of them are:
  • Binary Bonus
  • Sponsor or referral Bonus
  • Matching Bonus
  1. This plan will help you to boost up your team’s spirit and will provide you the best result.

4. Broad MLM Plan

Broad MLM Plan runs in a unique plan which helps you to earn a lot more money than other plans.

Here you can earn money from all the members in the Broad plan.

This plan is supported mainly by the United States of America, but it is now promoted by many other countries as well.

This is a well-reputed plan and makes sure one achieves victory. The broad comprises of 3 members but you can also make a broad of either 5 members or 9 members.

The below image shows the depiction of a broad.Broad Mlm Plan

How does this plan work?
  • Broad MLM plan is also famous by the name Revolving Matrix Plan. This plan covers all the board plans that an individual can be awarded during the business.
  • When you join this income plan you are assigned a blank board in which you will have to fill in some columns to match with other associates. The pattern and number of these columns differ from company to company.
  • You will be awarded a Commission as soon as you fill in the columns along with your associates.

5. Matrix Mlm Plan

According to this plan, you are not allowed to sponsor more than 4 people and if you want to add a fifth sponsor then you will have to sponsor them as one below your sponsor.

Matrix Mlm Plan

How does this plan work?
  • If all your downlines achieve the first level, then you get an income.
  • Someone’s weakness may lead you to work for them on their behalf.
  • Four sponsors are a must.
  • You can replace you down to their own if you find someone more active or efficient than them.
Benefits of Matrix MLM Plan:

This MLM plan is famous because of its bonuses they mainly are:

  • Sponsor Bonus
  • Level commission Bonus
  • Matching Bonus
  • Position Bonus
  • Forced Matrix Bonus

6. Unilevel Mlm Plan

As the name suggests, uni means one, you can only add a single leg

While they can recruit as many downlines as they want. There is no such restriction on the number of downlines.

Income is earned according to the number of levels.

Unilevel Mlm Plan

How is this plan supposed to work?
  • One of the easiest and understandable plans is the unilevel MLM plan. In this plan, if you are a distributor then, you can sponsor as many distributors as possible you like and then you will become a frontline to them.
  • It is different from a forced matrix plan, here you can sponsor as many distributors as possible you like.
Benefits of Unilevel MLM Plan:

This plan has a lot of compensations involved from where you can earn money. They are:

  • Fast start bonus
  • Sponsor bonus
  • Level bonus
  • Rank advanced bonus
  • Leadership bonus

7. Generation MLM Plan

This plan is an MLM business plan which is based on P.S (profit sharing) marketing business.

There are many other names as well assigned to this plan which include gap commission plan, repurchase plan, etc.

It is the most famous plan and is adopted worldwide.

Generation MLM Plan

How does this plan work?
  • There is no limit to the number of directs in the generation plan.
  • Growth is possible in left to right and top to bottom as well.
  • The only information required for a member to join the business is the sponsor’s id.
  • Commission can be calculated based on BV or PV stated under the company’s plan.
Benefits of Generation MLM Plan

As there is no limit on directs you can recruit as many directions as possible and earn commissions from it.

Here you can grow in any direction and earn compensation.

8. Single- line(mono-line) MLM:

One of the most efficient business plans is the single-line MLM plan.

It is very effective in growing your business and earn income.

As the name suggests, it is singly handled and you can have only one recruit under you, and the same will be followed by your recruit.

Single- line MLM Plan

This plan helps you to work efficiently and productively.

This plan is very profitable when you join the business a little early.

So, when you join you can only recruit a single person who will further recruit a single person, and this becomes beneficial for you.

How does this plan work?
  • The full chance and benefit of earning more income or profit whenever the new person joins.
  • The early you join the more profit you get.
  • No limitation or compulsory levels up till which you can work.
  • This plan is one of the most recommended plans because of its popularity and earning more income.
Benefits of Monoline MLM plan

Monoline MLM plan has one of the best compensations plans which will help you to earn more money in a short period. The compensation bonuses are:

  • Referral Bonus
  • Rejoin Bonus
  • Matching Bonus

9. Australian X-up Plan

This plan is a modern form of the uni-level plan which came into existence to purify it.

The various systems in this plan that are available are one up, two up, three up, or X up systems.

If you have any upline (the one who recruited you) then your first sale will be awarded to him/her but you will also earn from your second sale.

Similarly, when you recruit your downline their first sale profit will be awarded to you.

Australian X-up Plan

How does this Australian X-up plan work?

Australian 2 up means if you are the downline (the distributor) then you will not get the profit amount by your first two sales, instead, this amount will be awarded to your upline (the sponsor) who recruited you.

You will earn your income from your third sale. The same process follows for one up, three up, and further till X numbers.

Benefits of Australian X-up Plan

This plan has a lot of benefits associated with it. The most attractive ones are:

  • After every sale, you will be able to make a lot more money than others.
  • There are lot more bonuses involved here than the normal Australian MLM plan

10. Party MLM Plan

This MLM business plan is most popular amongst women. It is a plan where women organize a party, where buyers are invited.

Upon visiting this party when the clients/buyers purchase products and the profit/commission is distributed among all the distributors. Here there is very little influence of MLM.

These events are like “sales”, where products are sold at lower prices, so buyers attend the fair and purchases things at a lower price.

Party Mlm Plan

How does Party MLM Plan work?
  • Firstly, all the clients are invited either by sending invitations or by publicity through social media. The duration is not more than 90 mins.
  • Then the clients are shown presentations, post that they can see the samples, and buy the products. Along with that food and refreshments are also served to the visitors.
  • The main point here is to make the products attractive. Since this plan mainly concerns women, all the products presented here should be eye-catching.

Benefits of Party MLM Plan

The main benefits of this plan are all the products are sold at a decided price and the guests can pay via any mode of payment.

Also, you can encourage the guest to become the new host and join you in the company.

11. Gift MLM Plan

This plan is also called a help plan or donation plan.

After joining the network, you will have to donate a specific amount of money to your upline/recruiter.

Similarly, when you recruit someone or add a downline, they will have to donate you a specific amount of money.

This is how the plan works.

So basically, you will have to donate ones but you get a chance to earn more, depends on the downlines you can add.

The main reason why it is banned in a lot of countries is that many people find this a money investing scheme.

Gift Mlm Plan

How does this plan work?

This plan does not follow all the rules of the MLM plan since here we need to donate some money or we can say that we need to invest some money to our uplines upon joining the network.

This is just a give and takes plan, you lend your uplines and your downlines will lend you.

Here the uplines or the recruiters can recruit as many individuals they want so they can earn from all those downlines.

As this plan is not completely considered an MLM plan so the company may ask for some registration fees from each member in the network.

Gift MLM Plan Benefits:

This plan might attract a lot of people because you just pay once and can earn a lot more times.

There are commissions provided based on Levels. As there can be an infinite number of people in one level.

12. Hybrid MLM Plan

This is one of the most popular MLM plan available in the market.

The main reason for its popularity is because it is the combination of more than one MLM plan, hence it is like a multilevel business plan.

Here all the members are treated as distributors. Most of the Hybrid plans involve the combination of a Unilevel MLM plan and a Binary MLM plan.

Here you can make your network as deeper and as wider as you want.

The attraction of this plan is that the downlines are considered to be the most important pillars and are given more importance.

To capture everything in a smooth way Hybrid MLM software is required.

Hybrid Mlm Plan

How does this plan work?

This plan mainly works by the combination of Unilevel MLM plan’s strategies and Binary MLM plan’s strategies.

Here the downlines are added in two subtrees like the binary plan. One is the left subtree and the other right subtree.

Then at the first level, Unilevel’s plan is involved. This is how the network grows.

Hybrid MLM Plan Benefits

This plan turns out to be more beneficial if there are an equal number of downlines in both legs.

This plan is highly profitable and will help you to earn the below bonus within a short period. The bonuses involved in this plan are:

  • Fast Start Bonus
  • Referral Bonus
  • Custom Bonus

Benefits and Drawbacks of MLM Plan

BENEFITS

Low-cost register:

When you join any MLM business plan there is hardly any company that takes a registration fee and even if some companies are bound to take a registration fee due to its policies, then the registration fee would not exceed rupees 14000.

Therefore, it can be a good start to your business plan and you can easily register without any complications.

Learning new skills

An MLM company not only gives you financial benefits but also develops your knowledge skills.

The more you concentrate, the more you can learn. People can develop more business skills in MLM business plans rather than any traditional employment.

Worth purchasing products:

Whenever you intend to join any MLM business plan the company asks you because they want you to try the product before reselling them to others.

You can either buy and test it or you can just go through all the reviews and research about that product before recommending it forward.

DRAWBACKS

High turnover rates

When you join an MLM business plan your main motive is to earn an income and have financial freedom.

But some join the business either due to peer pressure or due to fashion.

High rejection rates

Some people will reject your product because they don’t find the product worth buying or there might be some other reason which can demotivate you or you can lose interest in it.

The distributors don’t make much money

When you observe that you are not making that much money that you expected to make then what should you do?

The answer to this question would be hard work, the more you work hard, the more you will earn.

And if you choose to not work hard, then you will never be able to succeed.

Frequently Asked Questions

How many types of MLM plans are there?

Ans: There are a lot of MLM plans available, but you should always look for the ones which are legal and will help you to earn more money. Some of them are:

  • Binary MLM Plan
  • MLM broad plan income
  • Matrix MLM plan
  • Generation MLM Plan

Which Marketing plan is most widely used in India?

Ans: Among all the other plans Generation plan is the most widely used network plan.

This is preferred not only in India but in the USA as well. As there is no limit on downlines adding you can create a wide network and earn profit out of it.

Which MLM Plan can be expanded easily.

Ans: Binary MLM plan can be expanded easily as you need to add only 2 downlines and each of them must add 2 downlines each.

So, this plan reduces the headache of searching and adding more downlines.

Conclusion

Now if you are still confused on which plan to select or where to build your career then let us make it clear that it doesn’t matter whichever plan you select.

Earning in an MLM company depends on the efforts you put in.

The efforts will depend on both product selling and community building. Some companies mainly focus on product selling and some focuses on community building.

All the MLM plans are the same the only difference here is the path which these plans select to build the community.

So, if you are thinking to join an MLM company always see how much money can you make, and if you are interested in knowing about which plan the company follows then you will get after reading this article.

Hope this article was helpful for you and now you will be able to select the right MLM company in the future.

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