Success in the MLM Generation Plan depends significantly on knowing the basics of
commission calculations. However, the article post is written with an intention to simplify the
procedure of calculating commission in the generation plan. Moreover, it also provides proper
information about difficulties and loopholes of commission computation. So, before investing in
the MLM generation compensation plan, it is essential to ensure that you have determined the
required things which will be beneficial in optimizing your earning potential.
How is Commission Calculated in MLM Generation Plan?
As there are several compensation schemes available in multi-level marketing ventures, MLM
Generation Plan is one of the most popular and dynamic models. Due to a wide variety of
unique and exceptional features, it has been the first choice among distributors. Apart from that,
it also provides numerous benefits along with different bonus structures to the participants. In
order to have a better understanding of its commission structure, bonuses, and other essential
things about this particular scheme, it is important to go through the article post below:
Here is How Commission Calculation Works in MLM Generation Plan:
Usually, most of the network marketing companies prefer using the generation MLM
compensation plan of five generations. (Suppose all these generations are G1, G2, G3, G4, and
G5). In a specific generation, every distributor can sponsor a new distributor and place it
according to the vacant place in the form of width and depth.
Below Is Commission % for the Distributor on Their Personal Sales Volume
In the MLM generation compensation scheme, distributors will receive commissions and profits
on the basis of the sales volume generated by each generation available in the network.
However, such compensation may vary depending on the position of the distributor in the
genealogy. Below is a quick example of how commission structure works according to the MLM
Generation Compensation Scheme.
Generation 1 (G1): In the first generation, every distributor will be able to earn a 10%
commission based on the personal sales volume.
Generation 2 (G2): In the second generation, every distributor available in the structure has the
permission to earn a 5% commission based on the sales volume generated by the first
generation.
Generation 3 (G3): In the third generation, each participant will get a commission of 3% which
will be based on the sales volume produced by their second-generation.
Generation 4 (G4): Similarly in the fourth generation, distributors will be able to get a 2%
commission on third-generation’s sales volume.
Generation 5 (G5): When it comes to the fifth generation, every distributor there will have the
right to get a commission of 1% commission on the fourth-generation’s sales volume.
Several Key Components Involved in Generation Plan’s Commission Calculation:
Commission Percentage: Generally, when it comes to the calculation of the commission in the
generation plan, it is vital to understand that the overall commission is calculated on the basis of
sales volume produced by downline generation. However, it may change due to generation level
as well as sales volume requirements.
Qualification Requirements: In order to succeed in the Generation Plan, distributors must
frequently complete an array of requirements. However, such things include achieving sales
goals while maintaining a minimum team volume. Apart from that, these standards promote
regular achievement and involvement for providing a good amount of money as commission.
Overall, the commission calculation is quite simple to understand specifically in the MLM
Generation Plan. However, it is particularly designed with a straightforward objective to
incentivize distributors for their performance and effort.