You may often hear many MLM and Party Plan companies touting they have the highest payouts or the best compensation for their distributors. So what is a compensation plan? What are the aspects you should look for in a compensation plan?
A compensation plan is a set of rules that determines how distributors (often called reps, independent business owners, or team members) earn commissions, overrides, bonuses, and other compensation.
The two most popular types of compensation plans in the MLM and Party Plan industries, are the Unilevel Plan and the Binary Plan. We know there is many other types of compensation plan structures such as Forced Matrix, Matrix, Stairstep Breakaway, Hybrids, Unigen etc…, but we will just focus on the two most popular.