
The MLM industry is growing rapidly all over the world. It employs over 100 million people as it’s salespeople. With more companies joining the MLM industry, the competition to lead the market is on the rise.
In this competitive market, the factor which attracts people to an MLM company is how well the distributors are compensated. The commissions and bonuses are given to the distributors based on the compensation plan chosen by the company. Thus, choosing the best compensation plan is crucial for a companies success.
There are many compensation plans commonly used in the MLM industry. Binary, Matrix, Unilevel, Generation, and Monoline are some of them. Each plan is different and companies choose a plan according to their business demands. Distributor experience is the prime focus of every organization. The compensation plan which maximizes the distributor engagement and retention helps the company build a strong network.
The other factors to look for while selecting the right compensation plan are,
- Product/service category
- Product cost to selling price ratio
- Existing laws in the market
- Training & marketing methods
In the blog: https://www.epixelmlmsoftware.com/blog/build-your-mlm-business, Epixel has explained in detail about most commonly used compensation plans and their advantages in taking the MLM business to new heights.