MLM Compensation Plans: Choose or Customize Your Model

Last reviewed: August 2026 · Reviewed by the MLM Bazaar team

Choosing the wrong compensation plan is expensive to fix after launch. MLM Bazaar configures Binary, Matrix, Unilevel, Monoline, Generation, Direct Selling/Ecommerce, and Donation plans, plus custom plans for anything else — each one testable in a working demo before you commit to a launch date.

Built for MLM and direct-selling company owners choosing a plan for a new launch, for agencies configuring a plan on behalf of a client, and for teams comparing all plan types we support.

What happens next

  1. You share product, team structure & growth goals
  2. We recommend a plan or scope custom
  3. Demo configured
  4. You test 3–7 days typical
  5. We review commission calculations with you
  6. Approved build moves to production

There is no single “best” compensation plan — the right structure depends on your product type, how you want distributors to grow their teams, and how much payout complexity you’re prepared to manage. The cards and table below cover the plans MLM Bazaar configures today. Each links to a dedicated page with the full commission logic, configuration options, and a demo walkthrough.

Supported plans

Which MLM compensation plans does MLM Bazaar support?

Two-leg tree

Binary

Two legs (left and right) under each distributor; commission is calculated on the weaker-performing leg’s volume.

Best fit if… you want balanced, team-driven growth and fast network expansion.

View Binary

Width × depth grid

Matrix

Fixed width and depth (for example, 3-wide by 5-deep); new signups fill open positions automatically.

Best fit if… you want predictable structure and forecastable payouts, especially for subscription products.

View Matrix

Unlimited frontline

Unilevel

Unlimited frontline width; commissions are paid level by level beneath each distributor.

Best fit if… your business is product- and retail-sales-driven and easy to explain.

View Unilevel

One chain

Monoline

A single line — every new signup is placed at the bottom of one chain, and commission is calculated on that chain’s total volume.

Best fit if… you want the simplest structure to administer and explain.

View Monoline

Rank gap

Generation

Commission is the gap between upline and downline payout percentages across defined generations, not just direct levels.

Best fit if… you want to reward leadership and network depth, not only recruitment width.

View Generation

Contribution queue

Donation

A peer-to-peer contribution structure. Requires the most careful legal review — see scope note.

Best fit if… your model is contribution- or gifting-based. Confirm compliance before launch.

View Donation

Highly customizable

Custom

Built from your specific rules — a new structure, or a combination of the plans above. Extended or hybrid.

Best fit if… none of the above matches exactly, or you’re combining mechanics from more than one plan. Quoted on requirements.

Scope a Custom Plan

Detailed comparison

Plan How it works Best fit if… Detail page
Binary Two legs (left and right) under each distributor; commission is calculated on the weaker-performing leg’s volume. Rewards balanced, team-driven growth and fast network expansion. /binary/
Matrix Fixed width and depth (for example, 3-wide by 5-deep); new signups fill open positions automatically. Predictable structure and forecastable payouts, especially for subscription products. /matrix/
Unilevel Unlimited frontline width; commissions are paid level by level beneath each distributor. Product- and retail-sales-driven, easy to explain to new distributors. /unilevel/
Monoline A single line — every new signup is placed at the bottom of one chain, and commission is calculated on that chain’s total volume. Simplest structure to administer and explain. /monoline/
Generation Commission is the gap between upline and downline payout percentages across defined generations. Reward leadership and network depth, not only recruitment width. /generation/
Direct Selling / Ecommerce Commission tied primarily to product orders and sales volume, layered or independent of a network structure. Retail product sales drives your revenue. /direct-selling-ecommerce/
Donation Peer-to-peer contribution structure. See legal review note. Contribution- or gifting-based model. /donation/
Custom Built from your specific rules — new structure or hybrid of above. None matches exactly, or you’re combining mechanics. Quoted on requirements. /custom/

How to choose

Which factors actually decide the right plan

1

What you sell

Physical, fast-moving products tend to pair well with Binary or Matrix structures; subscription or high-consideration products often fit Unilevel or Matrix better.

2

How distributors grow

Team-building and recruitment-driven growth points toward Binary or Generation; individual retail performance points toward Unilevel or Direct Selling/Ecommerce.

3

Payout complexity you can run

Monoline and Unilevel are the simplest to explain and audit; Binary, Matrix, and Generation carry more configuration and testing overhead.

4

Compliance exposure

Donation-style and contribution-based models carry the highest regulatory scrutiny under India’s direct-selling rules — see the legal note before finalizing this type.

Not listed?

Party Plan, Board Plan, Stair-Step, or a Hybrid Structure?

These aren’t pre-configured options, but MLM Bazaar builds them as custom plans — highly customizable to your rules.

Party Plan

Commissions organized around group or event-style sales rather than a continuous downline.

Board Plan

A matrix variant where filling a fixed “board” triggers a split into new boards.

Stair-Step / Breakaway

Distributors advance through purchase-volume ranks and break away into independent groups at higher ranks.

Hybrid

Any combination of the structures on this page, for example Binary genealogy with Unilevel-style payout.

Each is available through Custom Plan Development. Tell us the mechanics you need during the plan discussion, and we’ll confirm what’s configurable and what requires new development before you commit to a scope.

Scope & pricing

What is included vs quoted as custom

Included — 7 base plans (Rs 19,999 setup + Year 1)

  • Standard configuration for Binary / Matrix / Unilevel / Monoline / Generation / Donation / Direct Selling at your commission rules
  • Standard genealogy display and payout structure
  • Working demo — testing before production launch
  • Hosting, domain, and support Year 1 — standard hours, 24×7 for emergencies

Quoted separately — Custom & integrations

  • Extended or hybrid custom plans — any base plan as extended version, or combination of multiple
  • Non-standard mechanics — custom branching, board-split, custom capping/cycle/roll-up
  • Integrations — payment gateway, SMS, WhatsApp, CRM/ERP
  • Other — GST invoicing/receipt customisation, migration, plan changes after launch; from Year 2 hosting/domain/support renew annually

Custom plans are not included in the Rs 19,999 starting scope for base plans. See pricing and cost drivers for the full framework.

What does MLM Bazaar need from you? Your actual compensation plan document — commission rules, payout structure, and where relevant product/queue details — so the team has full end-to-end knowledge before configuration. If you’re still finalising, we walk through the closest base structure first and configure from there. The demo is where mismatches surface, not after launch.

Business-model and legal disclaimer: MLM Bazaar provides software and implementation services. The customer is responsible for obtaining professional legal, tax, consumer-protection, payment, and sector-specific advice and for ensuring that its business model, products, compensation plan, advertising, and operations comply with applicable law.

This applies with particular weight to Donation and contribution-style plans, which face the closest regulatory scrutiny under India’s Consumer Protection (Direct Selling) Rules, 2021, as amended in 2023, and the Consumer Protection Act’s 2025 enforcement reforms. This is general information, not legal advice — confirm your specific structure with a qualified Indian legal professional before launch. See the compliance guide for the current regulatory framework.

Frequently Asked Questions

Which MLM compensation plans does MLM Bazaar support?

Binary, Matrix, Unilevel, Monoline, Generation, Direct Selling/Ecommerce, and Donation, plus custom plans for structures outside this list.

Can MLM Bazaar build a Generation plan?

Yes. Generation plan commissions are calculated on the payout-percentage gap between upline and downline across defined generations, and this is a fully supported, configurable plan type.

What if my business uses a Party Plan, Board Plan, or Stair-Step plan?

These are available as custom builds rather than pre-configured options. See the Party/Board/Stair-Step section on this page, or start a plan discussion to confirm scope.

Can two plans be combined into a hybrid structure?

Yes, through custom development — for example, a Binary genealogy structure paired with Unilevel-style payout.

How are commissions tested before my plan goes live?

Your plan is configured in a staging environment and run against sample commission calculations, which you review before the system moves to production.

How long does it take to configure a compensation plan?

Typical test-to-production timing is 3–7 days once the plan rules, assets, and approvals are ready. This depends on scope and is not a guarantee for every project.

Is a specific MLM compensation plan legal in India?

MLM Bazaar provides software, not legal certification. Whether a specific compensation structure is legal depends on how it’s implemented and operated, under India’s Consumer Protection (Direct Selling) Rules, 2021, as amended, and related consumer-protection enforcement. Confirm your model with a qualified Indian legal professional.

Can I change my compensation plan after launch?

This is a scoped change rather than a default toggle, since it affects existing commission history and distributor accounts. Discuss timing and approach with MLM Bazaar before making the change.

Not sure which plan fits your business?

Share your product, team structure, and growth goals. We’ll recommend a base plan or scope a custom one — and show any of them running on a real demo, not just described.