Test your custom generation rules. We map your plan doc and rank sheet to a live, working Demo before you commit.
Who is generation MLM software for?
Generation MLM software fits MLM and direct-selling businesses that want to reward leadership and depth rather than frontline width alone, the distributor who builds and holds a qualified generation earns the gap to the next qualified generation beneath. It is chosen when advancement depends on rank, not just on adding direct recruits, and when payout should reflect the difference between what an upline has earned the right to receive and what the downline beneath has already qualified for.
Choose generation when your compensation depends on rank-qualified generations rather than a fixed rate at each level. If you want the same rate at every level regardless of rank, a unilevel structure is a closer fit; if you want a two-leg or capped-width network, a binary or matrix structure may be. The compensation-plans hub compares all supported plans, and generation can also run as an overlay on your Unilevel base rather than as a standalone, the choice is configured per your plan document.
What is generation MLM software?
Generation MLM software manages a compensation plan where commission is the payout-percentage gap across rank-qualified generations, not a rate applied at a level position. A generation is not a fixed level number, it is the group of distributors between one rank-qualified upline and the next rank-qualified downline beneath, and the commission for that generation is the difference between their payout percentages applied to the volume in the generation.
The same platform can run generation standalone or as a rank-gap bonus overlay on a Unilevel or Direct Selling base, the choice is configured per your plan document, not fixed by the software. In standalone mode the genealogy is the generation chain itself; in overlay mode the base plan still pays its own commissions and generation pays the additional gap only for rank-qualified generations. Sponsor and generation lineage are stored separately, and whether an unqualified generation rolls up to the next qualified distributor in the same chain depends on the roll-up rule configured for your plan.
How does generation qualification and placement work?
Every distributor belongs to a chain of uplines and downlines, but a distributor only starts a paying generation when they meet the rank or qualification threshold configured for that generation. Generations are therefore rank-gated, not level-gated, level 2 and level 7 can both be in generation 1 if no rank break occurs between them, and the same level number can belong to a different generation for different legs of the organisation.
Two relationships matter and are stored separately:
- Relationship 1 · referral Sponsor / placement parent Who referred the distributor and where they sit in the underlying organisation.
- Relationship 2 · generation Generation lineage Which rank-qualified upline and next rank-qualified downline define the paying generation, per your qualification thresholds , this is what the gap is calculated across.
| Setting | Generation (this page) | Unilevel |
|---|---|---|
| Pay basis | Gap between payout % across rank-qualified generations (e.g., 12% upline minus 7% downline) | Fixed rate × volume at that level (e.g., 8% at level 1, 5% at level 2) |
| What defines the pay unit | A rank-qualified generation, group between rank breaks, not a level number | A fixed level number, level 1, level 2, etc. |
| Qualification | Rank threshold per generation per your plan | Active/qualified status per distributor (optional) |
| Gap handling | Roll-up, unqualified generation rolls to next qualified in same chain per your rule | Compression, inactive position skipped, same leg rolls up |
| Same level, different members | Can belong to different generations depending on rank breaks on that leg | Always the same level number for everyone |
| Run mode | Standalone OR overlay on Unilevel/Direct Selling base | Standalone structure, level commissions are the plan |
| Payout cycle | Cycle posts per your generation payout rule; gap aggregated then capped | Cycle posts per your level-commission payout rule |
The standard Rs 19,999 scope covers your configured generation depth and gap rates (standalone or overlay per your choice). Non-standard branching or bespoke rank logic is quoted separately. Roll-up vs compression use similar names, on this page roll-up refers to generation roll-up across rank gaps, not level compression.
How are generation commissions calculated?
Commissions are the payout-percentage gap across each qualified generation , for each generation from 1 to your configured depth, the difference between the upline's payout percentage and the downline's payout percentage in the generation is applied to the volume in that generation. Rank qualification, roll-up and capping then determine what is paid and which gaps roll to the next qualified distributor in the same chain.
The illustration below uses sample percentages only to show the logic. It is not an earnings projection; your actual payout %, generation depth, rank thresholds, capping and cycle come from your plan document and are tested on the demo. The same logic applies whether generation runs standalone or as an overlay, in overlay mode the gap is additional to the base plan's own commissions.
| Input | Sample value |
|---|---|
| Generation depth configured | 5 generations |
| Run mode | Overlay on Unilevel base (gap is additional) |
| Payout % configured, You (rank-qualified) | 12% |
| Payout % configured, Next qualified downline | 7% in Gen 1; 3% in Gen 2 |
| Volume in generation (sample) | Gen 1: 10,000 · Gen 2: 8,000 |
| Roll-up | Enabled, unqualified generation rolls to next qualified in same chain |
| Capping (per distributor, per cycle) | As per your plan, e.g. 20,000 |
| Step | Logic | Result |
|---|---|---|
| 1. Identify qualified generations | Gen 1 to 5; each generation qualifies per its rank threshold | Only qualified generations pay a gap |
| 2. Apply roll-up per chain | Unqualified distributor in a generation is skipped; next qualified in same chain inherits that generation's gap | Adjusted generation membership, no rank gap blocks payment |
| 3. Calculate gap per generation | Gap = upline % minus downline % in that generation: Gen 1: 12% − 7% = 5% · Gen 2: 7% − 3% = 4% | Generation-wise gap percentages |
| 4. Apply gap to volume | Gen 1: 5% × 10,000 = 500 · Gen 2: 4% × 8,000 = 320 | Gross generation commission per generation (sample) |
| 5. Apply capping & cycle | 820 total compared to per-distributor cap (e.g. 20,000); cycle posts per your payout rule | Capped amount payable this cycle; excess handled per your plan. Unilevel overlay commissions post separately. |
With roll-up disabled, an unqualified generation simply has no gap commission, that generation is not paid and does not roll. With roll-up enabled, the next qualified distributor in the same chain moves into the paying position and receives the gap, the choice is set during configuration and visible in the genealogy and payout history reports. If generation runs standalone, there is no separate Unilevel level commission beside the gap.
What generation plan rules can MLM Bazaar configure?
Every parameter below is set to match your compensation plan document, whether generation runs standalone or as an overlay. Nothing is fixed to a single default:
- Generation depth: 4, 5, 7, 10, or another depth you specify, unlimited options, not a fixed tier.
- Run mode: standalone generation structure OR rank-gap bonus overlay on a Unilevel or Direct Selling base, configured per your choice.
- Payout percentages per generation: fixed amount or percentage per generation and per rank, as your plan specifies. Differential tapers are supported.
- Rank / leadership qualification: thresholds that start or close a generation, entirely per your plan, not fixed tiers. Whatever thresholds you define, we configure accordingly.
- Roll-up rule: disabled, or enabled per your rule, unqualified generation's gap rolls to the next qualified distributor in the same chain.
- Payout cycle: daily, weekly, monthly, or another cycle you define.
- Capping: maximum payout per distributor per cycle , global cap and optional per-generation cap, configurable per your plan.
- Volume and commission labels: the terminology your business uses (commonly BV, SV, or PV) is configured to match, not fixed to one convention.
- Bonus layers in scope: standard generation gap commissions per the table above; an additional bonus layer outside the gap calculation (for example a leadership pool) is quoted separately when needed.
How is the generation plan tested before it goes live?
There is no separate sandbox that diverges from what you ship. Your plan is configured on the working demo and what you test is what goes live, in whichever run mode you chose. Typical steps:
- You share your compensation plan document and rank sheet, including generation depth, payout percentages per generation, rank qualification thresholds, roll-up and capping rules, payout cycle, and whether generation runs standalone or as an overlay.
- We map the rules and confirm what is standard scope vs custom scope and integrated scope (payment gateway, SMS, WhatsApp, etc.).
- The generation structure is configured on the working demo, standalone or overlay per your choice.
- Sample distributors and rank cases are added, rank-qualified chain, unqualified generation, roll-up inheritance, and overlay stacking cases.
- Generation gaps, capping, roll-up and payout-cycle behaviour are run and checked against your plan doc.
- Reports are checked: generation / rank view, generation gap ledger, payout history and capped volume.
- Corrections are made and re-tested with you.
- The approved configuration is prepared for production launch. Typical test-to-production is 3-7 days once scope, assets, and approvals are ready, not a guaranteed promise for every project.
What reports and payout visibility are available?
- Generation / rank view, qualified generations, rank flags and gap progression down each chain
- Generation gap ledger, gap % per generation, volume per generation, and roll-up inheritance lineage
- Payout history, traceable back to the generation, rank and volume that produced the gap
- Capped volume report (per cycle and optionally per generation)
Admins see full organisation visibility across all generations. Distributors see reporting scoped to their own qualified generations. That scoping is also where support matters: standard support during office hours, 24×7 for emergencies. In overlay mode the generation ledger sits alongside the base plan's own reports rather than replacing them.
What is included in the Rs 19,999 starting scope?
The table below reflects two confirmations: (a) Rs 19,999 = setup plus first year, (b) GST invoicing/receipts and gateway/SMS/WhatsApp are extra scoped. The exact wording must still match the service agreement.
| Included in Rs 19,999 (setup + Year 1) | Scoped and quoted separately |
|---|---|
| Generation structure at your configured depth (e.g., 4, 5, 7 generations), standalone or as overlay per your choice | Non-standard generation mechanics, custom branching or non-standard generation behaviour |
| Gap calculation per generation per your payout-% thresholds + rank qualification per your thresholds | Custom rank-advancement automation or non-standard generation qualification logic |
| Roll-up rule per generation (qualified generation pays gap, unqualified rolls per your rule) | Custom roll-up or compression logic beyond standard per-generation roll-up |
| Configurable capping per distributor per cycle (global) + per-generation cap where used, and payout cycle | Custom capping or payout/cycle logic beyond standard configuration |
| Your volume/commission labels (BV / SV / PV or generation volume as you use them) | Non-standard volume-label logic or custom generation volume rules |
| Working demo, configuration, and testing before launch | Data migration and special data work |
| Hosting, domain, and support for the first year (standard hours, 24×7 for emergencies) | GST invoicing/receipt customisation; payment gateway, SMS, and WhatsApp integrations; CRM/ERP or other third-party integrations |
| From Year 2: hosting, domain, and support renew annually (per service agreement); taxes and third-party charges |
What does MLM Bazaar need from you?
Before configuration starts, we ask for your actual compensation plan document and rank sheet, generation depth, payout percentages per generation, rank qualification thresholds, roll-up and capping rules, payout cycle, and whether generation runs standalone or as an overlay on your existing plan, so our team has full end-to-end knowledge of what you are building before anything is configured. If you are still finalising the plan itself, we walk through the standard generation structure with you 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. MLM Bazaar does not evaluate or approve whether a specific compensation plan design complies with Indian direct-selling regulation. See the compliance guide for the current regulatory framework.
Frequently asked Questions
What is a generation MLM plan?
A generation MLM plan is a compensation structure where commission is the payout-percentage gap between an upline and a downline across defined, rank-qualified generations. Unlike unilevel which pays a level rate at each level, generation pays the differential, for example the gap between an upline at 12% and a downline at 7%, only for qualified generations. The same platform can run generation standalone or as a rank-gap overlay on a Unilevel or Direct Selling base.
How is commission calculated in a generation plan?
Commission is calculated generation by generation. For each qualified generation, the gap between the upline's payout percentage and the downline's payout percentage in that generation is applied to the volume in the generation. Roll-up and capping then determine the payable amount for the cycle. The exact payout percentages, qualification thresholds and cycle are set to match your compensation plan document.
What is the difference between a generation plan and a unilevel plan?
Unilevel pays a configured rate at each level, for example 8% at level 1, 5% at level 2, regardless of downline rank. Generation pays the percentage-point gap between an upline's rate and a downline's rate across qualified generations, so the same level position can pay differently depending on rank qualification. If you want rank-driven leadership pay rather than fixed per-level pay, generation is the closer fit. The compensation-plans hub compares all supported plans.
Does generation run standalone or as an overlay on another plan?
Both. The same platform can run generation as a standalone structure or as a rank-gap bonus overlay on a Unilevel or Direct Selling base. The choice is configured per your plan document and is documented during demo setup before launch.
How many generations deep can a generation plan pay?
Generation depth is configured to your plan, common choices are 4, 5, 7 or 10 generations, or another depth you specify. The standard Rs 19,999 scope covers your chosen depth. Non-standard generation branching or custom rank logic beyond the standard setup is scoped separately.
What happens if a generation does not qualify?
If a generation does not meet its rank or qualification threshold, no gap commission is generated for that generation under the standard roll-up rule. Whether the next qualified generation in the same chain rolls up to receive the gap depends on the roll-up rule configured for your plan.
Is a generation MLM plan legal in India?
MLM Bazaar builds and configures the software; we do not certify that a specific business model or compensation plan complies with Indian law. The Consumer Protection (Direct Selling) Rules, 2021, prohibit pyramid and money-circulation schemes. See our compliance guide, and confirm your specific plan with a qualified legal professional.
What's included in the Rs 19,999 starting scope, and what renews after Year 1?
Rs 19,999 covers the standard generation setup, your configured generation depth, payout-percentage gaps, rank qualification per your thresholds, capping, payout cycle, your volume labels, working demo and testing, plus hosting, domain, and support for the first year. From Year 2, hosting, domain, and support renew annually per the service agreement. Non-standard generation branching, custom rank logic, GST invoicing customisation, payment gateway, SMS and WhatsApp integrations, and additional bonus layers are scoped separately.
How do I see the generation plan working before committing?
We configure your generation plan on a working demo you and your team test directly, checking rank qualification per generation, gap calculations, roll-up and capping, and reviewing the generation ledger, before anything moves to production. What you test is what goes live.
What does MLM Bazaar need from us to configure the generation plan?
Your actual compensation plan document and rank sheet, including generation depth, payout percentages per generation, rank qualification thresholds, roll-up and capping rules, payout cycle, and whether generation runs standalone or as an overlay. If you are still finalising the plan, we walk through the standard generation structure with you first and configure from there.
See your generation plan running on a real demo
Bring your compensation plan document and rank sheet. We configure a working demo around them, and you and your team test it before it goes live.
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