Define Your Goals

• What do you want to achieve with your MLM business?
• Are you focusing on sales, recruitment, customer retention, or a mix of these?

Determine the Type of MLM Plan

There are various types of MLM compensation plans such as Binary, Matrix, Unilevel, Stair Step, and Hybrid plans. Each has its own advantages and disadvantages. You should understand each type and decide the one that aligns best with your business goals.

Decide on Payout Structure

• Determine how you will reward your distributors. Will it be through a percentage of sales, fixed amounts, bonuses, or a combination?
• Decide on the number of levels you will pay out. The deeper the levels, the more complex the system becomes.

Set Clear for Ranking Qualification Criteria

• Define clear criteria for promotions and demotions.
• Decide on sales targets, recruitment targets, or any other metrics that are important for your business.

Rewards & Bonuses

Consider offering fast start bonuses, performance bonuses, car allowances, travel rewards, or any other incentives to motivate your distributors.

Account for Company Profits

Remember, the goal of any business is profitability. Ensure that your compensation model allows for the company to be profitable.

Legal Considerations

• Be aware of the laws and regulations concerning MLM businesses in your country and other countries where you operate.
• Avoid designing a plan that resembles a pyramid scheme. Always ensure that compensation is based on sales of products or services, not solely on recruitment.

Support & Training

Provide your distributors with the necessary tools, training, and support to be successful in networking business.

MLM Software & Technologies

Ensure to invest in MLM software to automate commission calculations, track referrals, and manage distributor hierarchies.

Transparency

Make your compensation plan easy to understand and be transparent about how distributors can earn money.