Compression doesn’t rewrite your genealogy tree. Think of it as a payout-time “view” your software uses to keep earnings fair when someone in the chain isn’t qualified for that cycle. The tree stays the same; only those who count for that run change. How this plays out depends on your plan design: unilevel, binary, or matrix. So, let’s walk through each one in plain English with worked examples.
Compression in Unilevel MLM Plan
In a unilevel MLM plan, compression is the most intuitive. If someone in your depth isn’t qualified this month (maybe they missed the PV minimum or have a temporary compliance hold), the software skips that person for payout and pulls up the next qualified contributor below them—only for this run. Placement and sponsorship never move.
Example:
Say qualification is 100 PV. Depth pay is 10% on Level 1, 5% on Level 2, and 3% on Level 3. Sam’s line (closest first) looks like this:
L1 Kat = 90 PV (not qualified)
L2 Robin = 120 PV (qualified)
L3 Joseph = 160 PV (qualified)
L4 Nia = 110 PV (qualified)
L5 Omar = 105 PV (qualified)
Without compression, Sam earns:
L1: 0 (Kat is NQ)
L2: 120 × 5% = 6.0
L3: 160 × 3% = 4.8
With compression (fill up to 3 levels only)
L1 becomes Robin: 120 × 10% = 12.0
L2 becomes Joseph: 160 × 5% = 8.0
L3 becomes Nia: 110 × 3% = 3.3
Compression in Binary MLM Plan
Binary MLM plans are different. The core engine, left/right pairing, cycles, and carryover must remain untouched. You don’t pull people up inside a binary leg for the base binary payout. Compression usually applies to overlay bonuses like matching or leadership bonuses that sit on top of the binary math.
Quick base binary refresher (no compression here): Cycle size is 300 BV, and the payout rate is 10%. Left has 1,200 BV, and right has 900 BV. You match 900 BV (three cycles) and pay $90. You carry over 300 BV on the left. Compression doesn’t enter this picture at all.
Overlay example (where compression helps): Suppose sponsors get a 10% match on the binary pay of their top two personally enrolled earners each cycle. If one of those personally enrolled distributors isn’t qualified (say PV < 100), the software can “compress” that slot to the next qualified personally enrolled distributor so the sponsor still gets two matches.
Sponsor S has: Alice (qualified, earns $100 binary), Bob (not qualified, $0), and Carol (qualified, earns $60).
Without compressed matching: S only matches Alice = $10.
With compressed matching: Bob’s slot rolls to Carol = $10 + $6 = $16.
Matrix: like unilevel, but depth-capped and picky about fill
Matrix MLM plans (e.g., 3×3) cap both width and depth. Compression follows the same “skip then pull up” spirit as unilevel, but the depth cap means you might not always have someone to pull up. Some plans allow a “matrix pull-up” from lower levels within the same sponsor’s column to preserve the intended depth benefit, only if your rules say so.
Example:
Matrix is 3×3.
Qualification is 100 PV.
Level bonuses are 10% (L1), 5% (L2), and 3% (L3).
S’s L1 has A (120 PV, Q), B (90 PV, NQ), and C (110 PV, Q).
Under B at L2 are D (150 PV, Q), E (70 PV, NQ), and F (130 PV, Q).
No pull-up allowed: L1 pays A (12) + B (0) + C (11) = 23.
With a documented “pull-up” from the same column: B’s L1 slot can be filled by the nearest qualified below B, which is D.
L1 becomes A (12) + D (150 × 10% = 15) + C (11) = 38.
D is not paid again at L2; it’s been used to fill B’s L1 hole for this run.
