There are many different MLM companies, and many different compensation plans... with lots of successes in all of them. Which MLM compensation plan model is your favorite?

Here is a quick breakdown of the following plans:

1) Binary - Binary plans promote recruiting in a downline of two legs of distributors (left and right “profit centers”), with incentives to maintain matching sales volume between the two legs.

2) Unilevel - Unlimited first-level width with a depth of usually 5 to 10 levels. Every distributor the person sponsors is considered to be on that sponsor's frontline and there are no width limitations, meaning there is no limit to the amount of people one can sponsor in the frontline. The common goal of this plan is to recruit a large number of frontline distributors and then encourage them to do the same. This is due to the fact that commissions are normally paid out on a limited depth, which typically means sponsor can earn commissions on sales between 5 and 10 levels deep.

3) Two-Tier - Pays on two levels infinitely wide. Because it only goes two levels, the payout is typically much higher than other MLM pay plans. Higher commissions are paid on 1st level (personal sales) and lower commissions on 2nd level (sales from your recruits).

4) Matrix – A limit is placed on the number of distributors in the first level and on the number of levels deep. Additional recruits “spill over” into the next level. Growth is limited (for example, 4x12=48 total downline)

5) Stairstep Breakaway - Characterized by having representatives who are responsible for both personal and group sales volumes. Volume is created by recruiting and by retailing product. Various discounts or rebates may be paid to group leaders and a group leader can be any representative with one or more downline recruits. Once predefined personal and/or group volumes are achieved, a representative moves up a step. This continues until the representative "breaks away" from their upline. From that point on, the new group is no longer considered part of his upline's group - hence they are a "breakaway".

6) Aussie X-Up - Often implemented as a 2-up, the X-up compensation model is unique. The first X number of people you refer are passed up to your sponsor and treated as "Training Sales". After that, you're considered 'qualified' and can earn on each and every member you bring in thereafter. The leverage comes into play when the first person AFTER you're qualified enrolls, and you work with them to make their first X number of sales... which in turn will be passed up to your front line until they become qualified.

7) Hybrid - Compensation plans that are constructed using elements of more than one type of compensation plan.

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