Best Multi Level Markating (MLM) Compensation Plans
LETSCMS MLM software supports all the popular MLM plans
In the world of multi-level marketing (MLM) and direct selling, finding the right compensation plan that matches your business goals isn’t always simple. With so many options available, the challenge is to choose a plan that balances profitability, sustainability, and growth. At MLMTrees, we help you discover compensation plans that actually work for your business model and team.
Some of the key factors that matter most while selecting an MLM compensation plan are:
These elements together form the backbone of a successful MLM business. At MLMTrees, we design and customize MLM compensation plans that are reliable, scalable, and flexible, so your business can boom in network market without limits. Whether you are launching a new project or restructuring an existing network, our expert team is here to support you at every step.
What We Offer
At MLMTrees, we don’t just deliver software actually we provide complete MLM business solutions according to your needs.
Compensation Plans & Features
Compensation Plan Explanation
MLM & Compliance Guidance
Compensation Plan Calculator
With our solutions, you can focus on growing your network while we make sure your compensation structure is simple, transparent, and motivating for everyone involved.
Types of Popular MLM Compensation Plans
Binary MLM Plan
The Binary MLM Plan is one of the most popular MLM compensation models. It allows distributors to recruit two members (left and right leg), creating a balanced structure. This plan ensures steady growth and easy commission tracking. Businesses prefer Binary MLM Plan for its simplicity and scalability.
Matrix MLM Plan
The Matrix MLM Plan works in a fixed structure like 3×3 or 4×4, where each distributor can add a limited number of downlines. Once the slots are filled, spillovers occur, making it an attractive plan for both small and large businesses. Our MLM Software supports customizable Matrix Plans with automated payouts.
Unilevel MLM Plan
The Unilevel MLM Plan is one of the most popular and simple MLM compensation plans. In this plan, a distributor can directly sponsor unlimited members on the first level, and the downline expands horizontally. Commission is distributed level-wise which makes it transparent and easy to manage.
Monoline MLM Plan
The Monoline MLM Plan (also called Single Leg Plan) follows a straight-line structure where every new member is placed one after another in a single chain. Earnings depend on joining order and position in the line. Simple one-leg structure. Equal opportunity for all members. Fast payout and growth. This plan is suitable for startups that want a linear MLM software system with fair distribution.
Board MLM Plan
The Board MLM Plan (also known as Revolving Matrix Plan) operates in a cycle or table format. Once the board is filled with members, it splits into smaller boards, and uplines move to the next cycle with higher income opportunities. Encourages teamwork Multiple income cycles. Fast rewards system. Best for companies aiming at group-based income with board plan MLM software.
Australian X-Up MLM Plan
Australian X-Up MLM Plan Software is a specialized software solution designed to manage and automate the operations of an MLM business using the Australian X-Up Plan. This plan is a variation of the traditional Unilevel and Binary plan, with the “pass-up” system wherein members pass a certain number of their initial sales or recruits to their upline. The software is designed to efficiently manage this unique structure, ensuring that sales, commissions, and network growth are accurately tracked.
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Key Components of an MLM Compensation Plan
Referral/Recruitment Bonus
A reward for introducing new members into the system.
Direct Sales Commission
Income earned by selling the company’s products or services directly.
Level Income
Earnings from sales made by downline members at multiple levels.
Matching/Pairing Bonus
Used in binary plans – earned when left and right leg members generate balanced volume.
Repurchase Income
Income from repeat purchases made by members.
ROI/Investment Income
Members earn daily, weekly, or monthly returns on invested amounts or packages.
Rank/Leadership Bonuses
Extra incentives for achieving ranks, milestones, or leadership status.
Generation Bonus
Income calculated through generations rather than levels—typically in depth-based plans.
Supported Payment Gateway Options by LetsCMS
| Gateway | Country | Type | Status |
|---|---|---|---|
| PayPal | Global | Cards/Wallet | ✅ Ready |
| Razorpay | India | UPI, Cards | ✅ Ready |
| Stripe | Global | Cards | ✅ Ready |
| Instamojo | India | UPI/Cards | ✅ Optional |
| Paystack | Africa | Cards | ✅ Optional |
| Coinbase | Global | Crypto | ✅ Optional |
| Flutterwave | Africa | Cards/Wallet | ✅ Optional |
| Paytm | India | Wallet/UPI | ✅ Optional |
| Custom API | Global | REST/JSON | ✅ Available |
Use Cases in MLM Software
New Member Registration
- New users can register and buy their joining package through secure payment gateways.
- Payment verification triggers account activation and welcome emails.
E-Wallet Recharge
- Distributors can top up their wallets using various payment modes.
- Funds are available instantly for purchasing pins, products, or upgrading plans.
Product Purchases
- In eCommerce MLM models, product payments go through integrated gateways.
- Auto-invoice generation and stock deduction post successful transaction.
Commission Withdrawals
- Admin can integrate payout gateways (e.g., Razorpay Payouts, Payoneer).
- Users can request withdrawals which are auto-processed and tracked.
Top 8 Technologies for building MLM Software
How Commissions Are Calculated
Commissions in MLM software are automatically calculated based on the compensation plan you use. The system uses preset rules to calculate how much a distributor earns from their referrals or downline activity.
Percentage-Based Commission
A set % of a sale or package value is given as a commission. Example: 10% commission on a ₹5,000 joining package = ₹500 income.
Point-Based System (PV/BV)
Products carry business volume points. Commissions are calculated on total points accumulated. Example: 100 BV from left leg and 100 BV from right = ₹100 pair income.
Capping & Limits
A max earning limit per day/week can be applied. Example: Max ₹10,000 payout per day to control plan liabilities.
Matching Pairs
You get paid when your left and right downlines are balanced. Example: 1 left + 1 right = ₹500 payout.
Slab-Based Commissions
Unilevel or Matrix plans often use level-based slabs (Level 1: 10%, Level 2: 5%, etc.).
When and How Earnings Are Paid
The MLM software automates earnings payout based on admin settings.
Real-Time
Instant wallet update after a qualifying action (sale, referral).
Daily/Weekly
Income accumulated and released as per payout cycle.
Manual Request
Users apply for payout, admin approves & releases funds.
Payout Modes
Bank Transfer (via NEFT/IMPS/API), UPI Payments, PayPal/Stripe/Razorpay Payouts, Internal Wallet to Purchase Products or Pins
Crypto
Crypto (Coinbase, Metamask optional). All payment logs and reports are visible in the Admin Dashboard and User Panel with filter/search/export options.
How Bonuses and Rewards Are Distributed
Bonuses are motivational tools offered in addition to regular commissions. In LetsCMS MLM systems, bonus modules are fully automated and customizable.
Types of Bonuses
Referral/Direct Bonus
Paid when you directly sponsor a new member. Example: ₹500 for every new member you refer.
Level Bonus
Earn from team members placed under your downline across multiple levels. Example: Level 1 = 10%, Level 2 = 5%, Level 3 = 3%.
Matching Bonus
In Binary, Monoline or Generation plans, earn a % of your downline’s income. Example: 10% of direct’s total binary income.
Rank Achievement Bonus
Milestone bonuses when reaching new levels. Example: Silver Rank = ₹10,000 one-time bonus.
Leadership Bonus
Extra income for top performers or group volume achievers.
Repurchase Bonus
Triggered when members repurchase products or packages.
ROI/Passive Bonus
Fixed daily/weekly return over a period (common in ROI-based plans).
Car/Travel/Laptop Rewards
Awarded based on cumulative achievements. Can be auto-approved or admin-verified.
Types of Incomes in MLM Software
LetsCMS software supports multiple income streams in MLM businesses. Here’s a breakdown:
| Income Type | Description |
|---|---|
| Direct Income | Commission from personally sponsored members. |
| Level Income | Earnings from your team across multiple levels (Unilevel/Matrix). |
| Binary Income | Paid when left and right legs match in Binary plan. |
| Matching Bonus | Percentage of your direct downline’s income. |
| ROI Income | Fixed return paid periodically (used in investment-type MLMs). |
| Rank Bonus | Rewards on achieving new leadership ranks. |
| Leadership Bonus | Earned from helping your team succeed. |
| Auto Pool Income | Equalized payouts from a central income pool. |
| Repurchase Bonus | Commissions from repeat product purchases. |
| Global Bonus | Shared profit among top achievers. |
| Fast Start Bonus | Given for early performance within a time frame (e.g., 7 days of joining). |
Understanding how MLM commissions work is key to building a sustainable business. With LetsCMS MLM Software, all income types—from direct to ROI—are fully automated and secured. Whether you’re using Binary, Unilevel, Matrix, or Hybrid plans, our system ensures accurate, fast, and transparent payout processing for your entire network.