How MLM System Development Can Assist MLM Company?
25 Sept, 2023
What is BV ?
In a Multi-Level Marketing (MLM) compensation plan, BV stands for "Business Volume". Business Volume represents the point value assigned to products and services sold by a company.
Here's a bit more information on how it works:
Calculation of BV
Each product or service in the MLM Software Development is assigned a specific BV value, which is often based on the wholesale or retail price of the item. The BV is used to calculate commissions and bonuses for distributors within the MLM Distributors.
Commission Calculation
Distributors earn commissions based on the MLM System BV accumulated through their personal sales and the sales made by their downline (people they have recruited and people those recruits have recruited).
Rank Promotion
BV often plays a role in rank promotion within the MLM System development. Higher accumulated BV can lead to higher ranks, which usually come with increased commissions and bonuses.
MLM System Bonuses and Rewards
Besides regular commissions, MLM companies often have bonus schemes that are tied to the BV generated by a distributor or their team within a specific period.
Volume Requirements
Distributors may be required to achieve a certain amount of BV each month to remain active or qualified for commissions and bonuses. "Most MLM systems are capable of calculating the volume based on the conditions defined in the compensation plan."
In an MLM business, bonus compensation and rank promotion are often determined by the accumulation of points instead of solely on the currency value of products sold. BV is used to calculate these points. Different products will have different BVs, and these BVs are used to determine bonuses, and other rewards within the MLM compensation plan.
The BV is especially critical for MLM distributors as it affects their bonus earnings. It is a must for distributors to understand how BV is calculated and how it impacts their compensation. Often, the product retail price and the product BV assigned to a product can be different. For instance, a product that retails for $100 might only carry a BV of 50. In such cases, commissions and bonuses would be calculated on the 50 BV rather than the full $100.
It's also important to note that in the MLM industry, there are other terminologies used in compensation plans, such as PV (Personal Volume), CV (Commissionable Volume), etc. These terms may vary in meaning across different MLM companies, so always check the specifics of any MLM's compensation plan documentation.
