There are three MLM compression types: dynamic MLM compression, manual MLM compression, and forced MLM compression.
All three have their specific use, and each one works best when applied to the right compensation structure, business model, and distributor activity pattern.
But is there one MLM compression type that dominates the other types? Let’s compare them and identify.
We have taken five parameters: flexibility, simplicity, precision, resilience, and automation to identify how different compression types perform.
Both dynamic MLM compression and manual MLM compression offer high flexibility, as you can set the rules as per your compensation plan and add compression exceptions to these rules. However, forced compression provides low flexibility, as here compression takes place without exception. If the distributor is not qualified, compression will occur irrespective of the reason behind it.
Flexibility costs simplicity. You have to create compression logic in all three types of compression. However, dynamic MLM compression and manual MLM compression get more complex as you set exception rules, too. Forced compression appears as the best MLM compression in this case, but that’s because it doesn’t come with “functionality to set exceptions.”
When you can’t set exceptions and MLM compression occurs no matter what, you lose precision. Forced compression might occur even when it’s not required in some places. The other two types are highly precise.
When it comes to resilience, there are chances of manipulation in the case of dynamic MLM compression and forced MLM compression. Manual MLM compression comes out as the clear winner here because everything passes through a human check.
Lastly, in terms of automation, dynamic MLM compression is the best. Every aspect of compression works without human intervention and provides expected results. This is followed by forced compression, and lastly, manual compression.
Read our full MLM software compression article to understand exactly which model fits your compensation plan.
So, is there a best MLM compression type?
In most cases, MLM businesses prefer dynamic MLM compression, as its only weaker point is resilience. Still, the company implements high security standards and red flag alert systems to avoid fraud. So, it works in most cases.
However, if you want to keep a strict watch on compression, go for manual MLM compression, as it has high resilience. The only disadvantage is that it will require human intervention for processing the compression.
Finally, when you want to keep things light for your business, go for forced MLM compression. But be ready to accept the downside of low precision and rigid compression rules.
