What is the Generation MLM plan, and How does it work?
With the boom in online shopping, many E-commerce platforms choose the Generation MLM plan. If you want to boost sales volume for your MLM business, you should consider implementing this plan. Read on to learn more about how it works and how it can help your network marketing business.
MLM or multi-level marketing structures allow MLM companies to manage and expand their marketing network. But if your business wants to focus on sales, you should consider the Generation MLM plan. It encourages more members to join the network and increase sales, which proves profitable for the organization.
The MLM generation plan is one of the most popular and easy-to-understand MLM plans. People also call it the gap commission plan or Repurchase plan. This plan places multiple distributors below each other. Each distributor and its sponsors form a generation. There is no limit to the number of sponsors they can have. Hence, the generation network grows.
A Generation network marketing structure allows organizations to focus more on sales, making it perfect for E-commerce businesses. It promotes teamwork and provides incentives for distributors to build active networks. It is the best MLM plan for organizations seeking to grow their network while controlling their marketing budget.
The MLM generation plan is also known as the repurchase plan. This is because the organization provides incentives for distributors to repurchase products regularly. It helps distributors maintain their active status, and companies can ensure the regular flow of products. The MLM generation plan works by arranging distributors and their sponsors in a single generation.
The plan places distributors in a network vertically. Their direct and indirect sponsors are placed horizontally.Each generation can have an unlimited number of sponsors. Therefore, the generation network structure grows horizontally rather than vertically.
Let us understand the structure of the Generation Plan MLM through the below example:-
Distributor A joins the network. All his sponsors are placed next to him, horizontally. Together, they form Generation 0.
The Next day, Distributor A refers another distributor A1, to join the network. A1 is placed directly below A. All the direct and indirect sponsors of A1 are placed horizontally and they form Generation 1.
Similarly, another distributor, A2 joins the network. All his sponsors and himself will form Generation 2.
Distributors A3 and A4 join the network subsequently to form Generations 3 and 4 with their sponsors.
Similarly, the genealogy tree will continue to grow vertically as sponsors keep adding new members to the network.
Organizations can limit the number of generations they can have in their network.
The Generation plan in network marketing allows organizations to benefit from faster and higher sales. It is best for organizations dealing with FMGC goods. Also, they need not spend much on advertising as the network members do most of the marketing work. The attractive incentive structure motivates them to make sales and grow the network.
The reasons why MLM business should opt for a Generation MLM plan are:-
It can sustain growth as the generation plan encourages distributors to make recruits and sales to increase earning potential.
The vast expanding network helps make marketing easier. When more downline members associate with the brand, it increases word-of-mouth for the product, leading to increased sales.
The marketing network divided into generations provides easy distinctions for multiple product selling.
With the generation MLM plan, it is easier for businesses to introduce new products in the market. They do not have to constantly worry about advertising it.
The Generation MLM compensation plan distributes commissions throughout the network, though the percentages may vary. If a member in the 3rd generation makes a sale, their sponsor and everyone in their upline will get various sales percentages. This percentage will depend on their generation level.
This profit-sharing structure draws members into the network and makes the MLM plan work. Companies should design commissions and bonuses that generously reward the network members without compromising profits.
In the generation MLM plan, there are different types of commissions and bonuses that the members are eligible for. They are:-
1. Generation Bonus
The distributors receive a percentage of sales the generation members make as a generation bonus. This percentage varies with different generations. For example, the distributor may get a higher percentage of the sales made in the next generation. It keeps decreasing through the subsequent generations.
2. Referral Bonus
Every member in the generation MLM plan receives a referral bonus when their referral joins the network. It helps incentivize members to make constant referrals and expand their network.
3. Team sales bonus
A distributor receives a percentage of sales his generation members make when they achieve a specific target.
4. Retail commission
It is one of the exclusive commissions made by generation MLM members. Under this, the distributors pocket the difference in pricing between the wholesale and the retail rate of products. With the increased volume of sales, distributors have the opportunity to earn handsome retail commissions.
5. Leadership Bonus
The Generation MLM plan awards high-performing distributors with a leadership bonus. These distributors showcase exceptional leadership qualities by guiding their sponsors and helping them achieve targets consistently.
6. Rank Achievement Bonus
Distributors receive the Rank achievement bonus when they achieve a certain rank within the MLM network. The system also rewards them when they bring in increased sales volume.
The Generation MLM software is a comprehensive tool that helps businesses maintain their Generation marketing network. With the generation MLM software, you can easily automate commission calculations and member registrations and generate business reports.
An efficient system that enhances member experience can elevate your brand value. Implementing the latest Generation MLM software from Global MLM can help manage your marketing network, helping you get the most out of it.
A generation is a level that comprises a distributor and its sponsors. All the sponsors are placed horizontally to the distributor.
2. What is the role of a distributor in a Generation MLM plan?
A distributor in a Generation MLM plan is responsible for recruiting new members into the network. He also works to expand his customer base, make sales, and guide his sponsors to achieve their targets.
3. What is a breakaway feature in a Generation MLM plan?
A breakaway feature in a Generation MLM plan allows sponsors in a particular generation to break away from the network and become a distributor in the downline. He can then recruit new sponsors and receive a percentage of their sales.