MLM Generation Plan

MLM Generation Plan

The MLM Generation Plan is only a motivating MLM business plan. This generation plan is best suited for companies that manufacture consumable products and want to sell their products directly to end users.

In today's highly competitive market, companies need to increase their product sales by providing advertising to other advertising media, such as TVs and newspapers. Generation Plan Software gives you the opportunity to avoid advertising costs.

As we all know, MLM is a business where people work for themselves and others in the network. Distributors strive to sell their products through word-of-mouth advertising.

MLM generation plan is the concept based on a profit sharing MLM business. Manufacturers share advertising costs directly with distributors. This is why this is called the creation plan for the MLM industry when distributors sell products for distribution up-line.

MLM Software India has developed multi-generation planning MLM software for a variety of customers, and all of our customers are fully satisfied with our services and are successfully running their business based on our MLM generation planning.

Generation MLM Compensation Plan

In the generation plan, the lines are divided into different levels called generations and the commissions decrease as the generations grow. For example, if the commission is 10% for the first generation, it could be something like 7% for the second generation. And for the third generation and the fourth generation it can be 5% and 3% respectively.

Generation Plan is also called "Gap CommissionPlan". This plan is favored by companies that only sell products rather than recruiting associates. This plan keeps members motivated to sell no matter what level or gender they are in.

Most other popular MLM plans tend to allow members to watch for a while as they grow older. This is a plan that focuses on selling products and is popular among MLM businesses in the fast moving consumer goods (FMCG) sector. Such businesses prefer the generational plan because it helps them sell products effectively without having to spend on advertising.

How does Generation MLM Plan Work?

To understand how this plan works, you must first understand the concept of Generations. Generations are groups of down line members. Each generation has a set number of down line members. It varies from company to company, but can usually be four or five levels.

Let us hypothetically say that it is in this case. In this case, down line members up to level 5 are considered first generation. And levels 6 to 10 make the Second Generation; levels 11 to 15 make the Third Generation and so on. Now, the commission you get for products sold by your First Generation will be the highest, say 10%. And from the second generation you will get a lower commission rate, say 7%. From the third generation, you will get even fewer assignments, say 5%, and it continues that way. The commission rates are pre-determined by the company, as is the number of down line levels in each generation.

An important thing to note here is that even if the commission rate decreases as generations grow, the number of members in later generations will be much more than the previous one. For example, if the first generation has 100 members, the second generation is likely to be around 300, depending on the number of levels in each generation.