What is MLM Generation Plan ?
MLM Generation plan is an MLM business that rests on profit sharing. It is also called Gap Commission Plan, the plan works purely based on product selling and is tailor made for companies that manufacture and sell consumable items. Generation Plan is a whole volume from upline to downline. This includes people of same and different ranks. So all the volume from you to the consecutive person in your downline who may be of the same or higher rank forms a generation.The next generation is all volume from that person in your rank to the next person in your rank or higher and so on. The regulations of the organisation has set categories based on which the various levels of generations are divided. Every affiliate prompts his /downline to generate more sale of products and he/she will be paid bonuses and incentives in return. This Plan is suitable for e-commerce business where there are many users working on the network establishment from various parts of the world. As referral system keeps improves and increases, the member network will also increase and goes upto an infinite structure.The manufacturer shares advertising expenses direct to their distributors. When a distributor sells a product , the volume to be distributed towards up-lines,hence the name,Generation Plan.
Generation MLM Plan Compensation
Let us consider how the compensation plan works with an example. Imagine there are 1000 members ,who are categorised into four generations. Each level gets different compensations. If the top level gets 15% revenue , next level will get 10% and so on. This distribution again is set by rules and regulations of the organisation. The compensation scheme is very much similar to unilevel pay plans, the only difference being that you are paid on generations instead of levels.