The MLM Generation plan is based on profit sharing. Also called Gap Commission Plan, it works purely based on product selling and is tailor-made for companies that manufacture and sell consumable items. Every affiliate prompts their downline to generate more sales of products and they will be paid bonuses and incentives in return. As the referral system keeps improving and increasing, the member network will also increase. When a distributor sells a product, the volume is to be distributed towards up-lines, hence the name, Generation Plan.

How does the Generation MLM Plan work?

  • Generations are groups of downline members, each with a specific number of levels.
  • It varies with every company, but it is usually four or five tiers deep.
  • Assume that members of your downline up to level 5 are considered the first generation.
  • The second generation consists of levels 6 to 10, the third generation is levels 11 to 15, and so on.
  • The commission you receive for things sold by your first generation will now be the highest, say 10%.
  • And starting with the second generation, you'll be paid a lesser commission rate, say 7%.
  • From the third generation onwards, you will receive even lower commissions, say 5%, and so on.
  • The amount of downline levels in each generation, as well as the commission rates, are fixed by the company.

Bonuses in Generation MLM Plan

The generation plan's compensation and bonuses differ depending on the MLM company. The following are the most common types of bonuses awarded in the plan:

  1. Sponsor Bonus
  2. Matching Bonus
  3. Rank Achiever Bonus

Sponsor Bonus

This is an encouraging bonus since sponsors offer these types of bonuses to urge members to participate in regular network expansion.

Matching Bonus

It's the commission you make as a percentage of every member who joins through your downlines.

Rank Achiever Bonus

Existing members are eligible for this reward when they progress to a higher level or rank.

Key benefits of Generation MLM Plan

Boosts Product Sales

This plan is structured in such a way to keep every distributor encouraged in product sales, irrespective of their rank.

Introduce new products

Members would mostly be experienced in sales, so the company can regularly introduce new products.

Word-of-mouth Advertising

Most of the advertising of the network is done through word-of-mouth, eliminating the need for an elaborate advertising budget.

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