Generation MLM Plan Software: A Comprehensive Guide


Updated on Jun 28th, 2023
19 Mins Read
Generation MLM Plan Software & How it Work

Establishing an efficient Generation plan is the prerequisite for running a successful multi-level marketing (MLM) company. It’s the single most stressful requirement of every MLM out there as it accounts for a significant percentage of a company’s success.

With your distributors well compensated for their hard work, there is no limit to what they can do further to increase their commission. And that means more success for your MLM business. So, do you have a properly structured Generation MLM plan or are you looking to build one? With advancing technology, you can let a Generation MLM Software implement an efficient compensation plan for you.

In this article, we are going to help understand the generation plan better and position you to make more informed decisions when choosing software.

What is generation plan MLM?

In simpler terms, a Generation plan is a structured way of compensating members of an MLM business for their sales volume. The plan is designed to encourage teamwork and collaboration among the company’s distributors.

A Generation MLM plan has the distributors neatly organised into generations. A generation refers to the levels of distributors between two or more qualified members.

Here’s a simplified explanation of a Generation plan:-

  • XYZ Company Ltd is a nutritional supplements manufacturer and seller. They follow the Generation MLM plan to incentivize distributors and encourage them to build bigger and more successful downlines. Sarah is a distributor who recently joined the company.

  • She started growing her distributor network by recruiting more distributors below her. Sarah is the first generation within her distributor network. Any other distributor she recruits will be included in her first generation. Sarah will earn a commission for every sale that her first-gen distributors make.

  • Mark, a first-gen distributor in Sarah’s network, recruits a new distributor under him, who is now Sarah’s second-generation distributor. She will earn a reduced commission on sales made by Mark’s distributors. As the network progresses, this same process continues. Every distributor in the downline is free to recruit their distributors who will become subsequent generations in Sarah’s downline.

  • There are certain criteria created by the MLM business, which determine the qualification of the members. Some of these criteria include attaining a specific sales volume or onboarding a certain number of downline distributors.

Why use generation MLM plan software for implementing your Generation plans?

Generation MLM software is a digital platform that implements a generation MLM plan to help MLM businesses efficiently compensate their generations. Using the software can positively impact your business in several ways:

I. Efficient tracking and management

MLM companies can have highly complex generation structures which can be difficult to track. With the software, the complexity of generations, downlines, and calculating their compensations become simpler. Processes like tracking sales, generation qualifications, commissions and bonuses are automated. As such errors and time wastage is reduced.

II. Commission calculation accuracy

Without properly compensating distributors according to the rules of their Generation plan, it can be hard to avoid disputes. A Generation MLM software eliminates errors therefore enhancing transparency and trust within the MLM network.

III. Genealogy tree visualization

A genealogy tree is the relationship between distributors and their respective downlines. With the software, visualising the relationship is much easier, allowing you to analyse your MLM network structure, and track the performance and growth of the generations.

IV. Communication and collaboration

Communication is crucial in keeping your MLM network alive. With reliable software, you can engage with your distributors through features like notifications, chat, and messaging.

V. Reporting

Reports help you make decisions that can help your MLM business grow in the right direction. A Generation MLM software can generate real-time analytics and reports. You’ll have access to comprehensive reports on every facet, including sales volume, commissions, and team performance, among others.

VI. Flexibility and scalability

Generation plans MLM software offers scalability and flexibility to accommodate an MLM business growth and expansion. The software will be able to handle growing networks and the increasing complexity of calculations without affecting its performance.

There are certainly many more perks of acquiring a Generation MLM software. No matter how small or complex your MLM network is, you’ll always have room for adjustments.

Get To Understand the Generation MLM Plan Better

◉ You are already aware that the MLM industry has numerous other compensation plans. But the Generation plan is one of the most commonly used and has built a name for itself in the market. So, before jumping right into implementing it, it’s crucial to get a better gist of it.

◉ The plan borrows its name “Generation” from the idea of genealogy where directly recruited distributors form the first sponsor level. One unique feature of the generation plan is that it lacks expansion boundaries. It can expand both vertically and horizontally to levels that can be extremely difficult to manage. The arrangement of the members is therefore top to bottom and left to right.

◉ The distribution of commission to the members happens according to their respective generation levels. The Generation plan has gained popularity because it can handle basically any depth level. This makes it ideal for business owners who want to make more profit from their MLM business.

◉ Whether you are new in the industry or an expert marketer, this compensation plan can work to your advantage. But you need to implement it properly with the help of a generation MLM software.

What makes Generation Plan different from other MLM compensation plans?

While MLM compensation plans such as Matrix Plan and Binary Plan come with unique features and perks, the Generation plan stands out in many ways. Some of the features that make it different from the other plans include:

➤ Depth emphasis

Other plans mainly focus on widening MLM networks by recruiting as many people as possible. But the Generation plan’s emphasis is on building depths. The plan stimulates distributors to build stronger and deeper downline teams through close relations with few but dedicated members.

➤ Generational structure

In this plan, distributors are organized into generations, where each represents a particular depth or level in the MLM structure. The differentiating factor between generations is the number of levels existing between successful team members.

This structure makes it clearer and easier to track and evaluate team performance in a specific generation.

➤ Generation bonuses

Bonuses are a nice way of encouraging distributors to go over and beyond. And Generation plan offers quite a number. Distributors are entitled to bonuses based on the performance or sales volume of certain generations in their downline organization.

➤ Breakaway system

How do you reward distributors who go over and beyond to deliver what’s required at their level? The breakaway system is a sort of reward where distributors can “break away” from a certain upline to become independent leaders.

This happens when they meet certain qualifications based on team size, sales volumes, et cetera. It helps encourage leadership and offers a chance to increase earning potential of teams.

➤ Collaboration and teamwork

The Generation plan fosters collaboration and teamwork among network distributors. Since it’s depth-focused, it encourages distributors to support and mentor downline members to create stronger and more successful teams.

Advantages of the Generation MLM plan

What makes a compensation plan ideal is the ability to deliver success without requiring too much input. That’s what this MLM plan is all about. Here are a couple more perks of the plan:

(i) Boundless earning potential

This advantage is among the key reasons why most MLM businesses adopt the plan. With unlimited depth, the Generation MLM plan can save you more money by avoiding a marketing campaign.

(ii) Numerous income opportunities

With this plan, distributors can have multiple ways to earn money other than their commission. The plan offers rewards, bonuses, and royalties among others at various levels.

(iii) Easy to implement

Since the Generation plan MLM has a simple design, it’s easy to comprehend, implement, and manage. As such, MLM business owners do not require advanced technical expertise and high capital investments to implement it. Plus, with the availability of Generation MLM software, the management aspect becomes much easier.

(iv) Promotes teamwork

The plan encourages distributors to work together with their downline members and support their individual successes. This enhances a sense of community, togetherness, and growth within an MLM network.

Key Features of Generation MLM Plan Software

Generation MLM software comes with features specially designed to handle the complexities of implementing the Generation plan. The software is built to help organizations meet requirements such as distributor onboarding, lead generation, team training, member compensation, and more.

Important features of Generation MLM software

The software comes with plenty of features that make your entire MLM network compensation management easier. Here are the key features:-

a) Real-time analytics and insights

The software makes it easier to track your MLM business by giving you useful insights and reports in real-time. You can in turn use these insights to make business decisions, analyse the performance of distributors, retrieve commission reports and more.

b) Generation qualification tracking

Tracking the qualifications is part and parcel of managing your MLM network. The software allows you to create and monitor qualifications for every generation with your plan. Tracking required criteria such as sales volume and team size among others is automated for ease of qualifying specific generations.

c) Commissions and bonuses calculation

As your MLM network grows, it reaches a point where accurately calculating commissions becomes difficult and time-consuming. But with the software, the calculations are automatic allowing you to pay your distributors their rightful dues. It also reduces time wastage and eliminates errors.

d) Collaboration tools

Most Generation MLM software feature in-built collation and communication tools. This facilitates seamless communication with distributors and with their downline teams. The features include but are not limited to chat, messaging, notifications, discussion forums, and more.

e) Genealogy tree visualization

The software provides a visual representation of the genealogy tree. This shows the hierarchical structure of different distributors and their downline teams. You can also view and analyse distributor-generations relations. Using the visualization, you can understand and track the performance and growth of your MLM network.

f) Smart promotional tools

Identifying prospects can be a cumbersome task. Thankfully, the software comes with smart promotional features to make your work easier. These include lead-capturing pages, referral link promotions, social media integrations, and more.

g) E-wallet and payment integrations

E-wallet integration allows distributors to manage their commissions, bonuses, and other earnings conveniently. The e-wallets allow withdrawals, viewing balances, make purchases within the MLM network. Payment gateway integration enables secure and seamless payments for products, registration fees, transaction fees, and more.

h) Multi-language and multi-currency support

The software dashboard allows you to switch to your preferred language at any time. With over 10 languages and currencies supported, you can personalise distributor dashboards as needed.

Read:- Multi-currency Support in MLM Software: How to Expand Your Business Globally

How Generation MLM Plan Software Works

The Generation MLM software has been widely adopted across the globe. Understanding how the software works will come in handy when implementing your Generation plan. Every software has specific ways that it carries out its functions, but the concept remains the same.

Here’s how the software works:

➣ Distributor Registration

the software allows you to register new distributors and create their accounts. It offers provisions for capturing personal information, address, contact, and more.

➣ Generation structure setup

Create generation structures as per specific rules of your Generation plan. Define the number of levels for every generation and add the qualification criteria. Some of the metrics that you can use include sales volume and team size.

➣ Genealogy tree and downline tracking

The software monitors and maintains a genealogy tree, which is a representation of distributors with their downline organisations. With this, you can easily analyse and view the structure while monitoring your MLM network growth.

➣ Generation qualification

The software tracks the progress of distributors in qualifying for different generations based on the defined criteria. It monitors their sales volume, team performance, or other qualifications required for advancement within the Generation Plan. The software automatically updates the generation status of distributors as they meet the necessary criteria.

➣ Earnings calculation

Generation MLM software performs automated calculations of commissions and bonuses based on the Generation plan's rules. It considers factors such as sales volume, generation bonuses, leadership bonuses, override commissions or other compensation components tied to the plan.

➣ Reporting and analytics

Generate real-time reports on different metrics such as sales volume, team performance, generation bonuses earned, commission breakdowns, and more.

How Can Your Business Benefit from Generation MLM Plan Software?

Implementing the Generation plan becomes much easier with the software as the tool can help you navigate the plan’s complexities. The software offers more perks than that. These include:

➤ Plan management efficiency

How you manage your plan is what determines its success rate. The software can eliminate complexities by streamlining different aspects of the plan. You can easily calculate complex equations, track generation qualifications, and determine bonuses accurately.

➤ Transparent tracking

Tracking the distributors’ progress is crucial to the growth of your MLM network. The software makes tracking easier by ensuring qualifications are achieved and generations calculated accordingly.

➤ Better distributor experience

The software provides distributors with a friendly tool to monitor their downline teams, view commissions, and manage E-wallets. With collaboration tools, real-time reporting, and collaboration tools, it becomes easier for teams to improve their performance.

➤ Financial transaction streamlining

By implementing E-wallets and payment gateways, Generation MLM software simplifies financial transaction processing. The integration ensures secure and efficient processing of financial transactions, enhancing the overall user experience.

Read:- Most Popular MLM Software Integration

➤ Better decision making

Armed with real-time insights and reports, making crucial business decisions can be easier. The software offers detailed insights enabling you to identify trends and improve your strategies.

➤ Scalability

With software reliance, managing the growth of your MLM network becomes easier. It will allow you to onboard more distributors, handle complex calculations, and grow your network without the limitations of manual processes.

Choosing the Right Generation MLM Plan Software

Now that you are up to speed with what a Generation plan is, how do you choose the right software for your plan implementation? Here are a couple of things to consider:

➣ Plan compatibility

Ensure that the software aligns with the features and requirements of your plan. It should be capable of handling the generation structure, qualification criteria, commission calculations, and other elements unique to your plan.

➣ Scalability and flexibility

Can the software support your MLM network’s growth? Ensure it can handle a huge number of distributors, perform complex calculations, and adapt to your changing requirements.

➣ User-friendliness

How easy is it to navigate the software user interface? It should provide ease of use with limited technical expertise required. Consider requesting a free demo or conducting a trial before adopting the software.

➣ Ease of integration

Check that it can integrate with E-wallets and payment gateways commonly used in your network.

➣ Reporting and analytics

Go for a Generation MLM software that provides robust reporting and analytics capabilities. It should offer real-time and customizable reports. It should simplify tracking key performance metrics, monitor sales volume, analyse generation bonuses, and make data-driven decisions.

➣ Reliability and reputation

Research customer reviews, testimonials, and case studies to assess the reliability, stability, and performance of the software.

➣ Support and training

Consider the level of support and training provided by the software provider. Check whether there is comprehensive onboarding, training materials, and ongoing support to help you maximize the software's potential.


The Generation plan is a widely accepted compensation plan used by MLM businesses today. Its acceptance rate is one of the highest due to its benefits. If you are after achieving a high success rate in the industry, you can never go wrong with the Generation plan.

On top of that, you’ll need to choose the right Generation MLM software to enhance your success rate. Check the software’s compatibility, scalability, and integration, among other features before adopting it. By leveraging the software’s capabilities, you can implement and manage the Generation plan effectively. Ultimately, you’ll attain the success level that you seek for your MLM business.

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