This plan is considered the simplest of all the MLM compensation plans in the market today. You can enroll any number of distributors under you, and they too have this flexibility, but the depth level for earning commissions on the sales these people under you, or your team generate, may be restricted by companies
This is the most complex compensation plan that MLM industry employs. In it, the distributors you recruit will break away a certain points from you. For instance, if you recruit D2, D3, and D4; leaving D2,and D3 you will have to start your team with d$ only. This chain continues even for distributors under you, that is D2 & D3. Your compensation would be based on the organization’s sales and the team under you, but not below that level.Good understanding of these compensation plans help build better software for MLM companies. These plans need revision periodically based on the level at which you are, and the volume of business you get.
Typically, distributors review payment plans yearly, and make changes accordingly. Every member makes money on his sales, along with the sales that people below him make. Multi level Marketing represented by the direct sellers association in the US claims that MLM activities account for today,about 97 % of sales happen through this stream. MLM software companies see a huge potential with these companies.