Free MLM Plan Template - Explore Types of MLM & Top MLM Plans
When launching a network marketing or MLM (Multi-Level Marketing) business, selecting the right compensation plan is one of the most important decisions you need to make. A solidly designed MLM plan will help you grow, inspire your downline, and scale your organization for years to come. Time invested in a sound MLM plan is invaluable, whether you are a new startup or an existing business expanding their footprint. The easiest way to put together a sound MLM plan is to think about your network marketing compensation structure using a free MLM plan template to save time and to help you structure your system for high performance! In the following article, we will take a closer look at different primary types of MLM plans, why a suitable MLM structure is important, and take the next step to provide you a simple MLM plan template to use.
What Is an MLM Plan?
An MLM plan, or compensation plan, defines how distributors earn commissions, bonuses, and rewards through product sales and team building. It outlines the structure of downlines, payout percentages, eligibility criteria, and rank levels.
Choosing the right MLM plan helps align your business goals with the expectations of your distributors. It impacts recruitment, motivation, retention, and ultimately, your revenue.
Top Types of MLM Plans
Understanding the various types of MLM plans is essential before selecting or customizing one for your business. Here are the most commonly used:
- Binary MLM Plan
- Distributors have two legs (left and right).
- Income is earned through pair matching.
- Suitable for fast-scaling networks and spillover strategies.
- Unilevel MLM Plan
- Unlimited width but usually limited depth (e.g., 5–7 levels deep).
- Simple to manage and understand.
- Best for businesses focused on retail sales.
- Matrix MLM Plan
- Fixed width and depth (e.g., 3x3, 4x7).
- Ideal for controlled growth and uniform earnings.
- Common in product-based and service-oriented businesses.
- Board MLM Plan
- Members move through cycles or "boards."
- Once a board fills, the top member earns and exits, and others move up.
- Often used for short-term income strategies.
- Australian MLM Plan
- Focuses on leadership Australian, just level.
- Promotes deep team development and leadership.
- Australian with Binary and Unilevel MLM Plan
- Used by mature MLM companies.
- Hybrid MLM Plan
- Combination of two or more plans (e.g., Binary + Unilevel).
- Offers flexibility and customized benefits.
- Ideal for large-scale or global network marketing businesses.
Free MLM Plan Template (Basic Structure)
Here’s a basic free MLM plan template you can build upon:
1. Plan Type: Binary / Australian/ Board / Unilevel / Matrix (Choose your base plan)
2. Signup Fee: $50 (adjust as needed)
3. Product Commission: 10% on direct sales
4. Referral Bonus: $20 per new signup
5. Level Commission:
- Level 1: 10%
- Level 2: 5%
- Level 3: 3%
6. Pair Matching Bonus (if Binary): $30 per pair
7. Rank System: - Bronze (0–10 recruits)
- Silver (11–30)
- Gold (31–100)
8. Monthly Payout: Every 30 days via e-wallet or bank transfer
This can be further customized using software like LetsCMS MLM Software, which allows you to integrate and manage your MLM plan digitally with real-time dashboards and reporting.
Final Thoughts
With so many types of MLM plans available, choosing the right one depends on your product, team structure, and long-term business goals. Use the free MLM plan template above to start organizing your strategy. As you grow, investing in a reliable MLM software platform can help you automate payouts, track genealogy, and manage commissions efficiently.
Start smart, stay transparent, and build a plan that supports your team and your vision for scalable success. Live Demo MLM Software
